Jumbo Loans

Jumbo & Super Jumbo Loan Programs

The Private Client Group provides jumbo mortgages and super jumbo home loans to high net worth individuals and the self employed, enabling them to build, to purchase, invest in and refinance to pull profits out of residential property without substantial cash outlays which might necessitate the liquidation of performing, income generating assets. 

While the term jumbo mortgage has become a blanket term for single family residential loans in excess of $417,000 (the Fannie Mae “conforming loan limit”), the conventional lending channel is reasonably capable of financing jumbo mortgages up to $650,000. However, above $650,000, traditional bank and mortgage company financing is severely inefficient. The term “super jumbo mortgage” was coined to encompass all residential loans in excess of $650,000 up to $50 Million or more, however alternative terms such as “ultra jumbo mortgage” are sometimes used to describe home loans from $5MM+.

Regardless of the name, banks deem these large loans “non conforming”, even though the typical applicant for a super jumbo loan would at least logically seem to be an ideal customer for them to retain. However, due to the constraints of the banking system, retail banks and mortgage companies can only offer competitive terms on loans which they are assured can be sold to somebody else. Because all “conforming” loans can be sold to other parties such as Fannie Mae and Freddie Mac, banks greatly prefer to write smaller loans which conform to so-called “Agency” guidelines, as larger loans must be held and serviced by the banks themselves. When given the choice between using their finite capital to package, sell, and re-package hundreds or thousands of conforming loans or tying up that same capital in a few large loans, banks have little choice but to choose the former, bulk origination model if they wish to survive.

Furthermore, conventional financial institutions, banks, and brokerages, have traditionally lacked the ability to aggressively underwrite super jumbo mortgages, as they lack the experience and expertise required to successfully execute these transactions to multi-million dollar loan amounts.  This failing is due in part to the very low volume of super jumbo mortgage business any individual bank or brokerage transacts in a given year, and is compounded by the fact that they remain focused on their core mortgage businesses, which target a more easily documented wage earning client base.  They simply don't possess the tools and personnel to properly analyze and manage the risks involved with super jumbo mortgages, and have for the most part chosen to respond with very conservative mortgage offerings for their high net worth clientele, characterized by low loan to value ratios, large down payment requirements, and rigid income documentation standards.

While this may seem to bode ill for the typical super jumbo mortgage applicant, the capital markets are broader and deeper today than ever before, even if they may be rather complex and difficult to navigate for retail bankers. That’s why our Private Client Group came into being, to afford high net worth individuals, the self employed, business owners, and other people whom banks have trouble financing the ability to tap global financing resources from top tier investment banks, hedge funds, private banks, REITs, insurers, and other financial institutions and investors who still think it’s good business to form lending relationships with persons of high net worth or high profile, in good or bad credit markets alike.

Introducing a New Kind of Super Jumbo Loan Company

Amazed by the lack of knowledge about super jumbo mortgage finance exhibited by even the most seasoned conventional lenders in their personal real estate dealings, ELG’s Vertical Markets management team chose to organize the ELG Private Client Group.  Drawn from across the investment banking, hedge fund and real estate industries, the team designed ELG's Private Client Group from the ground up to meet and exceed the super jumbo mortgage needs of high net worth individuals by doing deals that "make sense" instead of remaining in the shelters of conventional jumbo mortgage underwriting.  The unit has grown from a referral-only boutique offering serving the principals' nearest and dearest into a robust, full service practice handling the real estate financing affairs of the public, including some of the nation's most notable families, with complete discretion and a breadth of super jumbo financing options into the multi-million dollar range.  Through its Alliance Program, numerous family offices, financial advisors, builder/developers and real estate agents from across the USA have made our Private Client Group the "go to" super jumbo mortgage company for a broad array of clients ranging from business owners to investment bankers, traders, athletes, entertainers, industrialists & persons of multi-generational wealth.

$1MM to $50MM+ Financing | Call (800)290-4770 ext.1