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How High Can You Get with 10% Down?

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Mortgage and Lending with US Bank NMLS: 22343

How High Can You Get with 10% Down?

 

First and foremost, let me declare emphatically that I would pass any drug test at any time.  You show up at Casa Spinosa at 4am in the morning, drag me out into your unmarked van, make me tinkle in a cup and take a lock of my graying hair, and you're still not going to find a trace of anything illegal.  Nothing.  Nada.  But I don't know why I have to defend myself when that's not even close to what this post is about...

 

No, instead, I want to tell you about our 10% down mortgage that will allow a buyer to purchase a home worth up to $3.3MM while making just a 10% down payment.  This is a single loan, it's available as a 7/1 ARM or a 30-year fixed and it has no PMI.  That's right.  You're not hallucinating here.  This is a super jumbo loan to a maximum amount of $3,000,000 that halves the standard down payment requirement and allows a buyer to enter the high-cost markets we see here in California without having to come up with a full 20% down payment.

 

How Do I Get My Fix?

While this is a unique and advantageous program for some, there are a few buzzkills.  If you're a first-time homebuyer (defined as not having owned a home in the last three years), your maximum debt-to-income (DTI) ratio is reduced from 43% to 38%.  As the loan amount moves higher, the asset reserve requirement on the loan will increase.  So while you may only be required to put 10% down, we will look to see that you have enough in accounts you don't plan to liquidate (investments, retirement, etc.) to qualify you for this type of mortgage.

 

Aside from these restraints above, you have a choice between a 7/1 ARM program and a 30-year fixed option.  Good FICO scores (preferably over 740) open the most doors and provide the most flexibility.  There are no prepayment penalties.

 

So remember, while many home buyers in California in luxury price points will continue to believe that they must put 20 or even 30% down to reach into the $3MM range, you have alternatives to that assumption.  And make no mistake, your Realtor may not believe this is possible either.  If that ends up being the case, get me involved at any time.  Obtaining the financing is just one part of the bigger whole.  Getting your offer accepted with 10% down is another.  I am familiar with this challenge and the objections it may elicit and I am prepared to help you overcome the common obstacles and achieve success with your next offer.

 

With a little help from my friends, 

 

 

Robert J. Spinosa
Vice President of Mortgage Lending

Guaranteed Rate
NMLS: 22343 
Cell/Text: 415-367-5959 Fax: 415-366-1590
rob.spinosa@rate.com

Marin Office:  324 Sir Francis Drake Blvd., San Anselmo, CA  94960

Berkeley Office:  1400 Shattuck Ave., Suite 1, Berkeley, CA  94709
 

*The views and opinions expressed on this site about work-related matters are my own, have not been reviewed or approved by Guaranteed Rate and do not necessarily represent the views and opinions of Guaranteed Rate.  In no way do I commit Guaranteed Rate to any position on any matter or issue without the express prior written consent of Guaranteed Rate's Human Resources Department.

 

Guaranteed Rate. Illinois Residential Mortgage Licensee NMLS License #2611 3940 N. Ravenswood ChicagoIL 60613 - (866) 934-7283

Comments (3)

Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great information...thanks for sharing and have a wonderful Thursday!

Mar 08, 2018 07:34 AM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

That is great info especially for folks in the higher brackets where the prices are escalating high into the atmosphere. 

Mar 08, 2018 03:39 PM
Golden1 Agents
San Mateo, CA

Thank you for sharing this. 

Mar 10, 2018 07:31 PM