Flex Jumbo Loans With As Little As 10% Down

Jumbo loans are often the only option for many borrowers who want to purchase luxury homes or homes in areas with competitive markets and high costs of living. Unfortunately, many homeowners still fail to meet the strict lending requirements for traditional jumbo loans, making them unable to purchase their dream homes.

That’s where Flex jumbo loans can help. A Flex jumbo loan is a low down payment non-QM jumbo loan that offers less stringent requirements and lower down payment options.

To allow more borrowers to qualify for jumbo loans, Griffin Funding has expanded the underwriting box while still maintaining very competitive rates. We’ve designed these loans with “common sense” underwriting in mind so we can offer our near-miss jumbo loans with as little as 10% down.

We will allow:

• 620 credit score for loan amounts up to $2.5 million (30% down required)
• 640 credit score for loan amounts up to $2.5 million (20% down required)
• 680 credit score for loan amounts up to $2 million (10% down required)
• Up to 55% debt-to-income ratio
• As little as 10% down on a second home
• As little as 15% down on an investment property

What Is a Flex Jumbo Loan?

A Flex jumbo loan, also known as a big bank turndown, is a subtype of jumbo loan designed for individuals who need a large sum to purchase a home because they do not have the cash available to do so.

A Flex jumbo mortgage is considered a non-qualified mortgage (non-QM) loan. Non-QM loans are not required to comply with the Consumer Financial Protection Bureau’s standards for qualified mortgages, allowing lenders to offer more flexible requirements and terms.

To accommodate the needs of a growing population of potential borrowers who do not meet the stricter requirements of Freddie Mac or Fannie Mae loans, Flex jumbo mortgages were created with less restrictive parameters. While you still need a respectable credit score and substantial income, Flex jumbo loans are more forgiving if you have fluctuating cash flow or good credit debt, like large student loans.

Flex jumbo mortgages are available on owner-occupied primary residences and second homes. We are one of the only lenders in the country that only requires 10% down on a second home or vacation home.

Flex Jumbo vs. Jumbo Loan

A few key differences between Flex jumbo and standard jumbo loans include:

Credit Score

Jumbo loans are designed for individuals who can prove their ability to repay through creditworthiness, so higher credit scores are typically required. Most lenders will look for at least 700 or above, but requirements may vary.

With Flex jumbo loans, borrowers can qualify with a credit score as low as 620, making it easier for individuals of all types to purchase luxury homes or homes in competitive markets.

Debt-to-Income Ratio

Jumbo loans require a DTI of 43% or lower, depending on the lender. However, with Flex jumbo loans, borrowers can qualify with a DTI as high as 55%.

Financial Health Documentation

Traditional lenders must verify income and job history through traditional means. They’ll ask for pay stubs and tax returns.

Some borrowers don’t fit the stringent criteria because they’re entrepreneurs, retired, or self-employed. Flex jumbo loans are a good option for individuals who take deductions on their tax returns to reduce their taxable income and don’t qualify for a traditional jumbo loan.

Down Payment

Jumbo loan down payments are typically higher because they’re a higher risk loan.

Since Flex jumbo loans are non-QM loans, lenders can require any down payment they choose. At Griffin Funding, our Flex jumbo loans allow you to qualify for a loan with as little as 10% down.

Interest Only

The amortization on jumbo loans is typically principal and interest.

Since Flex jumbo loans are non-QM loans, lenders allow interest only payments for up to ten years. At Griffin Funding, our Flex jumbo loans allow you to qualify for a loan based on the interest only payment.

When Is a Flex Jumbo Loan Recommended?

Typically, Flex jumbo loans are recommended for those who:

• Fall just short of approval for traditional mortgage loans and standard jumbo loans.
• Have previously been turned down for a mortgage loan due to a high debt ratio, a recent credit event, low income reported on their tax return, or who have been self-employed for less than two years.
• Have high student loan debt and are struggling to buy a home and invest in real estate because of strict credit requirements.

Flex jumbo mortgages are popular amongst young aspiring first-time buyers, long-term homeowners trying to refinance, cash buyers looking to preserve their capital, or those who want to purchase a second home. If any of these circumstances apply to you, you should consider a Flex jumbo loan to secure the funds you need.

Who Qualifies for a Flex Jumbo Loan?

Flex jumbo loans allow lenders to consider a more comprehensive borrower profile, including a slightly lower FICO score, to determine your ability to repay the loan. As such, we offer more flexible Flex jumbo loan requirements:

• Down payment: Instead of 20% down, we will allow as little as 10% down up to $2 million (loan amounts available up to $5 million with more down-payment)
• DTI ratio: Instead of the normal 43% debt-to-income ratio limit, we will allow you to go up to 55%
• Credit score: Instead of a 720+ credit score, we will allow a 620 credit score (No credit events in the last 4 years and credit scores less than 720 require larger down payments)
• Income: Borrowers should have sufficient income given the loan amount they’re applying for, as well as cash reserves or eligible assets in some cases. We can evaluate borrower income using tax returns, pay stubs, bank statements, and/or proof of assets.

Pros and Cons of Flex Jumbo Loans

Key benefits of jumbo loans include the following:

• Higher loan amounts: With jumbo loans, you can get higher loan amounts to afford your dream home without taking out multiple loans.
• Competitive interest rates: Jumbo loans are larger-value, but the rates can be lower than conventional loans because many lenders don’t sell them. However, even when the interest rates aren’t lower than conventional loans, they remain competitive.
• Flexibility: Jumbo loans don’t have wholesaler restrictions, allowing lenders to choose who they want to lend to and allow different types of jumbo loans, including fixed- and adjustable-rate mortgages.
• Lower down payments: Conventional loans require a down payment of 20% if you want to avoid PMI. However, many jumbo loan lenders don’t require PMI for lower down payments. With Griffin Funding, you may qualify for a jumbo loan with as little as 10% down.

A few disadvantages of jumbo loans include the following:

• Vetting: Before you get approved for a jumbo loan, the lender will vet the property to ensure it qualifies.
• Higher credit scores needed: You should have good credit before applying for a home loan. You may still qualify for a jumbo loan with a lower credit score, but the lower your score, the higher your down payment will need to be.
• High-income requirements: While we can review your financial health in several ways, including using bank statements and traditional methods, lenders like to see high income to ensure borrowers can repay the loan.

Maximum Flex Jumbo Loan Amount

Borrowers can get a Flex jumbo loan for up to $2 million with a 10% down payment or up to $5 million with a larger down payment.

• Get a loan for up to $2 million with a 10% down payment
• Get a loan for up to $5 million with a 30% down payment

Flexible Loan Terms

Instead of just offering a 30-year or 15-year fixed-rate we also offer a 40-year fixed rate, 7-year, and 5-year adjustable-rate mortgages (ARMs) with an interest-only option for the first 10 years.

The lower interest rate in the early years of your mortgage benefits you in the long run because you’ll accumulate less interest on your loan, especially if you can pay off a significant portion within the first few years.

If you’re making interest-only payments at first, you may end up paying higher mortgage payments after the established term, but this may be beneficial if you are focusing on paying off student loans, investing in multiple properties, or have restricted cash flow for other reasons.

Imagine being able to buy your dream home for a purchase price of $3.5 million by putting 15% down. You would have a loan amount below $3 million that you could finance with a 30-year fixed-rate mortgage that has an interest-only payment for the first 10 years (interest-only requires 15% down up to $3 million or 10% down up to $2 million).

Apply For a Flex Jumbo Loan

The home-buying process may seem complicated, but our experts prioritize efficiency and strive to close purchase loans within 30 days or less. With diverse and flexible mortgage options, like our 10% down jumbo loan, securing a loan with Griffin Funding makes applying for a loan and purchasing your first or second home significantly easier.

Are you ready to purchase your dream home in a competitive market but worried you’ll be turned down for a traditional loan? Consider a jumbo loan with a low down payment instead. Contact a Griffin Funding representative to learn more or get started online today.

Flex Jumbo Loans: Frequently Asked Questions

Do jumbo loans require 20% down?

While standard jumbo loans typically require at least 20% down to lower the risk of the lender, Flex jumbo loans through Griffin Funding do not. We offer Flex jumbo loans that require as little as 10% down.

Can you get a jumbo loan with 10% down?

Yes, qualifying applicants can secure a jumbo loan with 10% down. The required down payment will depend on several factors, including the amount you wish to borrow and your financial profile.

Do jumbo loans need mortgage insurance?

Griffin Funding does not require PMI with jumbo or Flex jumbo loans. Even if you’re only putting down 10% on a Flex jumbo loan, PMI is not required.

Whether or not a jumbo loan requires mortgage insurance depends on the lender. It’s always a good idea to talk to your lender about whether you’ll be required to get PMI because it can drastically increase the monthly cost of homeownership.

Keep in mind that if you’re putting down less than 20% and don’t have to pay PMI, your interest rates will likely be higher because your loan is riskier.

Do I need a jumbo loan given the 2025 increase in conforming loan limits?

For 2025, the FHFA increased the conforming loan limit to $806,500 for single-unit properties, and up to $1,209,750 in high-cost areas. This means that borrowers seeking a mortgage greater than $806,500 in most areas will likely need to take out a jumbo loan to secure financing.

Additionally, if you’re interested in purchasing a luxury property in a high-cost area, it’s possible that you may need financing that exceeds $1,209,750, meaning you’d need to take out a jumbo loan.

You can look up your county loan limit to see what the conforming loan limit is in the area where you’re hoping to buy.