Many home buyers in Washington state require higher loan amount just not offered through VA and FHA financing. Additionally, many of these buyers do not have the 10% or even 20% down payment required by most lenders and banks. The good news is many qualified home buyers now have Jumbo financing solutions up to 95% loan-to-value. The jumbo programs offer both fixed interest rates and ARMs with no private monthly mortgage insurance. The new jumbo loan options are targeted to borrowers in higher costs locations like Seattle, Spokane, and Tacoma who want to limit their down payment to 5% of the purchase price. The minimum loan amount on the new program is $424,100 and the maximum is $1,000,0000. The program is available to applicants across the nation with a credit score of at least 700. There are a few important things listed below loan applicants will want to know in advance:
- No mortgage insurance on 95% financing jumbo loans (save up to $500 a month PMI)
- 95% financing to $1,500,000 with no PMI require a credit score of 700+. Choose from 1 single loan, or an 80-15 combo mortgage. Great for higher cost areas like Seattle, etc
- Numerous 90% Jumbo options – single loan 10% down, 80-10 combo loans, etc.
- Rates starting in the 3-4% range
- Reduced closing costs option available
- The 95% jumbo is for owner occupied, purchase and rate term transactions. Cash out refinance is only permitted to 85%. Financing is available for 1 Unit Single Family Residence, Attached or Detached Housing and warrantable condominiums. Not available for vacant land, build on your own lot, etc.
- Other jumbo financing options available for vacation homes and investment properties. Most of these programs will require at least 10% down payment.
- Smaller non-jumbo conforming loans can still be offered up to $424,100 with a minimum score 620
- These programs are especially good for doctors, physicians, attorneys and other professionals that have the income but lack a large down payment.
- Jumbo Refinance options for existing high-cost loans
Please also note the following loan amount limit caps:
- 95% Loan to value: Up to $1,500,000 with 700+ credit score.
- 90% Loan to value: Up to $2,500,000 with 720+ credit score.
- 85% Loan to value: Up to $3,000,000 with 740+ credit score.
Here are a few reasons why a home buyer may want to finance 95%
- No large down payment due to a pending sale of current residence – while the real estate market has seen a marked improvement, some homes make take longer to sell. If you are looking to move forward on a new purchase before your existing home sells, this may be a good a good option.
- Retain savings in higher yield investments – check with you financial advisor, but sometimes it makes sense to put less down and keep your money working for you.
- Home Improvements, etc – Some homes need remodeling; by only putting down 5%, you can save the rest of your money for needed updating, new furniture or other improvements.
Buyers that want to learn more can call ph: 800-962-0677 or visit www.JumboMortgageSource.com for a complete list of program guidelines.