10% down jumbo loans without PMI in Arizona — what's actually available
Most jumbo programs require 20% down. A handful of portfolio jumbo products allow 10% down without PMI by pricing in slightly higher rates and tighter underwriting. They exist; they're not advertised; and they fit specific borrower profiles.
How portfolio jumbo lenders skip PMI
PMI exists to protect the lender when the borrower has under 20% equity. Portfolio jumbo programs avoid PMI by pricing the risk into the rate itself — that 0.25%–0.50% rate spread is the PMI premium internalized.
These programs are held on the lender's balance sheet (not sold to Fannie/Freddie), so guidelines come from the lender's portfolio policy. That's why every lender's overlay is different.
Cost comparison on a $1.2M Scottsdale purchase
The 10%-down-no-PMI option costs about $1,030/month more in principal and interest than the 20%-down option. Over 5 years, that's $61,800 in additional payments. The $120,000 in cash preserved by going 10% down can sit invested instead — at 5% real return, that's $33,000 in earnings over 5 years.
Net cost of 10%-down for someone who'll deploy the difference at 5%: roughly $29K over 5 years. Net cost for someone who'll just hold it in cash: roughly $62K. Math depends on what you do with the cash you don't put down.
| Scenario | Down payment | Loan amount | Approx. monthly P&I | Cash to close |
|---|---|---|---|---|
| 20% down + 6.50% | $240,000 | $960,000 | $6,070 | ~$255,000 |
| 10% down + 6.875% (no PMI) | $120,000 | $1,080,000 | $7,100 | ~$135,000 |
| 10% down + PMI (rare for jumbo) | $120,000 | $1,080,000 | $6,750 + $560 PMI | ~$135,000 |
Who qualifies
- Credit score 720+ (best pricing at 740+).
- Reserves: 6 months PITI minimum, 12 months preferred.
- Full income documentation — W-2 + tax returns standard.
- Debt-to-income under 43% with the new mortgage included.
- Owner-occupied primary residence only (most programs).
Common questions
Can I do 10% down on a $2M jumbo loan?
Selected programs go to $2M with 10% down. Above $2M, most require 20%–25%. The qualification math gets stricter as loan size climbs.
What if I have RSU or commission income?
Workable. Lenders typically need 24 months of RSU vesting history or 24 months of commission for it to count fully. Bonus income often gets 50% credit until 24 months.
Is the rate the same on a 10%-down jumbo as a 20%-down jumbo?
No. Expect 0.25%–0.50% above the 20%-down equivalent. The exact spread varies by lender, scenario, and rate environment.
Can I refinance to drop PMI later if my loan does have it?
Yes — once your loan balance reaches 80% LTV (based on current appraised value), you can refinance or request PMI removal. With portfolio jumbo loans without PMI, this isn't a factor.
How Mike + Cornerstone help
I structure jumbo financing constantly for Scottsdale, Paradise Valley, Arcadia, and Biltmore buyers. The right structure depends on what you'll do with the cash you don't put down. We'll model 10%-down vs 20%-down vs the alternatives so you can make the call with full information.
Talk to Mike first Get pre-approved
No pressure, no commitment. Free 20-minute consult. Mike will look at your scenario and tell you straight whether this works for you.