For years after the financial crash homebuyers had to put down 20% to get a Jumbo Mortgage. Many would be home-buyers still believe this.
Most people in the industry, including Realtors, know that you can put down much less than 20% down to get a conventional or FHA loan. They may not however know that 5% down Jumbo loans are available.
Here are some reasons why Real Estate agents should tell their clients about lower downpayment Jumbo loans
Benefits to a Low Downpayment Jumbo loan
- A homebuyer may find a home in the perfect location , but the home needs work to update/modernize . This could lead to the buyer getting a much better price on the home and being able to make it exactly thiers.
- "Saving for a Rainy day" - Many times the 20% downpayment option plus the closing costs will drain the homebuyers accounts. This option leaves plenty for a rainy day fund
- Chance to use the funds for other investments and opportunities. The home will appreciate at the same pace whether or not they put down 20% or 5%. Many times the funds can be better utilized in thier own business, buying investment properties, or investing in stocks
Basic Requirements and Features for a Low Downpayment Jumbo Mortgage
- 740 Mid FICO score for 5% down up to $2 million
- 660 Mid FICO score for 10% down up to $3 million
- 9 months of Reserves (9x monthly payment left)
- 100% gifts are ok with 10% down
- 43% debt to income ratio for 5% down
- up to 55% debt to income ratio with 10% down
- Restricted stock income ok
- 4 years wait after Short-Sale, Foreclosure or BK for 5% down
- 2 years wait after SS, FC, or BK for 10% down
- No wait after SS, FC or BK at 15% down
These are very basic requirements for a low down-payment Jumbo mortage. To find out more contact us
Craig Bosse
NMLS 1019442
(925) 322 0436
Craig.Bosse@caliberhomeloans.com
Jumbo Home Loans
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