Do I need to pay mortgage insurance if I get a jumbo loan through Better Mortgage?
No. Private mortgage insurance (PMI) is only required on Better Mortgage conforming loans with a loan-to-value ratio (LTV) higher than 80%.
Better Mortgage waives the PMI requirement for jumbo loans with loan-to-value ratios up to 89.99%. Instead, Better Mortgage requires borrowers to have at least 6–24 months of cash reserves to be eligible for a jumbo loan. The exact amount of minimum cash reserves needed depends on the total jumbo loan amount plus the borrower's credit, loan-to-value ratio, and debt-to-income ratio.
It’s also important to note that the maximum LTV that Better Mortgage accepts for a jumbo loan also depends on the type of property the loan is for and the type of loan itself. In some cases, the maximum LTV for a jumbo loan may be as low as 65%.