Special products available to high income borrowers include higher loan-to-value mortgage loans, custom-designed mortgages and cross-collateralization. 

Most mortgage insurance (PMI) companies do not insure large loan amounts exceeding FNMA loan limits  Due to the increased credit risk, most banks will require a larger down payment and usually charge a higher interest rate. 

Under some conditions, lenders may be more flexible with loan to value requirements for affluent borrowers although the interest rate could be slightly higher.  More flexible terms can allow borrowers to keep their assets in other investments and may maximize tax advantages resulting from the mortgage interest deduction.

Custom-packaged mortgages can also assist high-income borrowers. For example, some lenders can package two mortgages into a single hybrid loan.  The borrower can lock in a low fixed rate for a portion of the loan amount and obtain an adjustable rate mortgage (ARM) or open end credit line for the remaining balance.  Either the mortgaged property or another property may be used to obtain 100% financing. 

Two and three tiered mortgages are also available in a combination of fixed and adjustable products. This type of financing allows the borrower to put cash to other uses. 

Individuals with healthy stock portfolios are sometimes faced with a unique dilemma. To purchase a home, the buyer may be forced to liquidate stocks or other equities to raise the required down payment.  Capital gains taxes resulting from the liquidation of the asset could reduce the full benefit of the stock investments' appreciation  potential or the stock could be in the middle of an upward movement.    

One possible solution to this dilemma is for a lender or equity firm who can offer  a mortgage secured by the borrowers' stock portfolio to serve as the down payment on the loan.  This will allow the borrower to avoid liquidating and missing out on future stock gains.  The borrower is able to obtain 100% financing on their home albeit at a higher interest rate - offset by money saved on capital gains taxes and greater potential stock gain. (Consult your tax advisor for the loan product that best suits your needs).

Cross-collateralization (using more than one asset to secure a mortgage loan) is a good method for someone that has found a house to buy before selling their current residence. The borrower may use the equity in his/her present home as a down payment on the new home (until the old home is sold). Similar to a bridge loan, the borrower obtains a new mortgage covering both properties.

Affluent buyers should  look for a lender who can accommodate a wide range of  financing scenarios and mortgage products tailored to suit their financial situation.