Home & Garden
Low Down-payment Options For Jumbo Home-buyers Now Available
The myth is that you need 20% down-payment for a Jumbo Mortgage. The truth is that there are options with as little as 5% down-payment.
Walnut Creek home prices have skyrocketed over the past several years. With this large jump in home prices many would be home-buyers are finding they need to get a Jumbo Mortgage in order to buy their dream home.
What is a Jumbo Mortgage?
A jumbo mortgage is any mortgage above the conventional loan limit for the county. In Contra Costa County that is $726,525 for 2019. Putting down 5% would only get you a purchase price of $764,763 for a conventional loan, which doesn't go far in Walnut Creek.
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How much Down-payment do you need for a Jumbo Mortgage?
Today there are options as little as 5% down-payment Jumbo loans. These loans can go up to $2 million giving you purchasing power up to around $2.1 million. With 10% down you can get a loan up to $3 million , with approximately a $3.33 mil purchase price.
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What else does it take to Qualify for a Jumbo Mortgage?
For a low down-payment mortgage you would typically need 9 months of reserves (9 months of mortgage payments) left after the down-payment and closing costs. You'll need a good FICO score of 740 for a 5% down-payment mortgage and at least a 660 for a 10% down loan.
These of course are the basics. For more information on Jumbo Mortgages contact us.
Craig Bosse