By Annamaria Andriotis | The Wall Street Journal
Wealthy borrowers no longer need large down payments to get a mortgage.
More lenders are approving borrowers who put less than 20% down for million-dollar home purchases, suggesting banks are feeling sanguine about the luxury market.
Last month, Bank of America BAC -1.15% lowered its minimum down-payment requirement to 15%, down from 20%, for loans of up to $1 million. Wells Fargo WFC -1.72% cut down-payment requirements by the same amount to a minimum of 15% in July for private jumbo mortgages, which start above $417,000 in most parts of the country and exceed $625,500 in pricier housing markets, such as New York and San Francisco. Also, in March, New Penn Financial, a mortgage lender based in Plymouth Meeting, Pa., and subsidiary of Shellpoint Partners, began allowing 15% down payments for private jumbos.
