The majority of mortgage banks require a minimum down payment of 20% for any loan that is determined a Jumbo Loan. In San Diego County a Jumbo loan is considered any loan amount that is over $546,250.00. There are a few mortgage banks that have access to purchase money Home Equity Lines of Credit options that will allow a buyer to purchase up to an approximately purchase price of $832,000.00 with a minimum down payment of 10%, but that is about the most amount of home a buyer can purchase with that low of a down payment.
What if you would like to purchase a home that listed for more than $832,000.00, but only have 10% down payment?
We are one of the few mortgage banks that can offer a mortgage solution to a buyer in this situation.
The REX Homebuyer Agreement offers a solution. You and REX each put up equal amounts of a down payment to provide 20% down payment on a home. You purchase the home, you are the homeowner and REX is a co-investor without ownership or occupancy rights. The REX Homebuyer Agreement is not a loan so you are not required to make a monthly payment. In exchange for putting up 50% of the down payment on your home, REX will receive 50% of the portion of the change in the value of your home up OR down, when you decide to sell or refinance your home in the future. If your home appreciates, you will make money and so will REX. If the value of your home decrease, REX will lose money and you will reduce your loss.
The REX program will allow you to stop saving and purchase now rather than continue renting. The program will also allow you to keep a cash cushion for repairs or reserves rather than tying up all of your money into a down payment.
“Chad and his group made the mortgage approval process smooth and understandable. Multiple updates and explanations during the process kept me informed of progress. Chad also provided great advice on other home services, in particular an insurance company that saved me thousands of dollars a year on home and auto insurance.”
I HIGHLY recommend Chad and his team.
Chad and The Chad Baker team really helped me from start to finish with my loan process. They were extremely responsive and provided me updates on a daily basis. I had a few personal issues that they helped me work through so I could get the best loan program and best rate. Very knowledgeable about the industry, rates and trends.I HIGHLY recommend Chad and his team. I’m happy to offer a reference upon request. Please ask Chad for my contact information.”
“Hey Chad – thank you so much to you in particular as well as your team. It’s been a real pleasure working with someone who’s as responsive and helpful throughout the process, as you’ve been. We really appreciate what you’ve done. ”