For all those realtors out there that think you can do a million dollar deal without showing any paper.. think again..

Yes, it's true... we have some programs that will go up to $2 million with no assets.. BUT many lenders are turning away from the stated stated stuff and going for proof of assets in your documentation.

You can work with stated income and self-employed, but to soldify your purchase transaction in the luxury home market, make sure you have some assets to show to underwriting...

As soon as you jump over the million dollar mark on your transaction.. the programs begin to change... for instance, Countrywide.. why anyone uses them for super jumbo deals over $1 million I haven't the faintist idea... they will cut your appraisal every time... not to mention they do not cater to the super jumbo lending market either... therefore, make sure you are bringing your loan to the right lender!!

There are plenty of lenders that can go 100% financing on super jumbo deals over $1 million...

When you cross over that $1.5 million... be ready... ASSETS! RESERVES! ... do you at least have 2 months PITI with that 620 score?

Keep in mind that your credit scores don't always determine your approval... Many lenders are going to need 3 open tradelines on credit reporting 24 months activity..

When you then cross over $2 million... many lenders that you thought could do your deal will begin to drop out... as new lenders/investors will begin to appear... ASSETS is nearly a must here...

Are you aware of the Payment Shock ? As a rule of thumb, the general consensus within many underwriters guidelines on the super jumbo loans is to make sure that the proposed monthly payment is not more than 2 times the buyers current monthly mortgage payments... Many of you realtors are forgetting this... Keep in mind, that although you might be able to get an exception, or find a lender that offers " NO PAYMENT SHOCK "... Payment Shock can kill your deal.

Speaking of exceptions .... with deals in the milion dollar ballpark.. you may want to also keep in mind that an underwriter doesn't want to see more than one exception.. too many exceptions can also kill your deal..

In conclusion, make sure your deal makes sense.. Common Sense is an important factor in underwriting million dollar purchase transactions..

and if, you can go full doc, please do.. it will be beneficial for all of us...

We finance 100% to $2.0 million and 95% up to $5.0 million.
Stated income for Self Employed
No payment shock or common sense required.

Jason good information on Million Dollar homes. With this becoming the norm in CA many loan officers or loan consultants really do not know how to treat these great clients.