If you are looking for a jumbo loan with a low down payment, you may find a lot of options. But not all jumbo loans are built the same.
Our minimum-down-payment loans have many features that make them extremely useful for numerous borrowers in San Diego and the surrounding area.
So what makes them so special? Let’s explore the top features of our low-down-payment jumbo loans to find out…
Top 7 Features for Our Minimum-Down-Payment Jumbo Mortgage
1. Up to $3 Million in Financing
Perhaps the most attractive feature of our minimum-down-payment jumbo mortgage is the chance to borrow up to $3 million toward the purchase of your property. With this loan option, you’ll be able to borrow a significant amount, allowing you to make the purchase of a top-of-the-line luxury home. The $3-million option has a 10%-down requirement, which is obviously a lot of liquid cash, so if you can only generate 5%, you’ll still be able to borrow up to $2 million, meaning you could make the purchase of a property worth $2,105,263 with this jumbo mortgage. Having such large amounts available for loans, while maintaining low down payments, is perhaps the top reason why this loan is so popular.
2. Gifts Can Be Used for 100% of the Financing
Another important feature of this jumbo loan is the fact that you can use a financial gift to fund 100% of the down payment or reserve requirements, as long as the gift comes from an eligible family member. (Contact our staff to find out which family members are eligible.)
There are very few investors that will allow payment reserves to be sourced from a gift, so this is obviously an important benefit for people who don’t have a down payment but can get a gift from family members. If using gift funds, remember that you will need a gift letter stating that the money is not a loan.
3. Cash Reserves are Limited
An extremely beneficial component of these loans is that it has limited reserve requirements for a jumbo loan. With this program, you will only need nine months of reserve requirements to qualify for a loan up to $3 million. This can be particularly beneficial to borrowers who earn a sizable income but don’t have the readily-available capital in savings that is often required by other jumbo loan products. With other jumbo mortgages, you may discover that you need the equivalent of 12 months (or more) worth of reserve requirements in your savings, which means this loan could provide qualification when others can’t.
4. Cash-Out Up to 95% Available
You can also use this loan for a refinancing deal up to 95% of the value of the property. The program allows for a cash out on a primary residence up to 95% of the value of the home with a loan amount up to $750,000. Compared to other programs, this is an extremely high loan value for cash-out refinancing, as most programs only allow up to 70% value on the refinance. Conforming loans from Fannie Mae, for example, only allow up to 80% cash out on a primary residence. This allows you to take advantage of more equity in your home if you need to make repairs or want to use equity for another property purchase.
5. Non-Warrantable Condos are Eligible
This loan program allows for the purchase of many different properties. You can use the money to fund the purchase of a single-family home or a condo, but that’s not really a unique quality. What is unique is the fact that you can use the money to purchase a non-warrantable condo. “Non-warrantable” simply means it will not be eligible for purchase on the secondary market by Fannie Mae or Freddie Mac.
More condos are non-warrantable than you might think. Warrantability takes into account numerous factors, including the financial status of the facility’s HOA, zoning restrictions, and even square footage. If the condo building has too many units owned by a single entity, the facility may be non-warrantable. Fortunately, you can use this program to fund the purchase of a non-warrantable unit, resulting in significant financing with a greater chance of approval.
6. No Added Limitations or Special Requirements for First-Time Buyers
With other loans, especially jumbo loans, there can be significant restrictions or special requirements for loans being delivered to first-time buyers. Unfortunately, these may keep young buyers, or people that have been putting off the purchase of a home, from buying the top-quality home they deserve. With other programs, first-time home buyers who need a jumbo loan will be limited to 80% loan-to-value.
However, with this program, first-time homebuyers are more likely to get approved for a loan above 80% LTV. It does not have restrictions for first-time buyers whose proposed housing payments do not exceed 250% of their current housing expenses. So if you have a proposed total monthly housing payment of $5,000 and an existing total monthly housing payment of $3,000, you would qualify, as your ratio of proposed to current expenses in not to high. Basically, this is just an assurance that your housing expenses won’t jump by too much after you make the purchase.
7. Allows the Use of Restricted Stock Units for Income
The program will also allow for the use of restricted stock units as income if you have received the stock for a period of two years. For other loan programs, the use of restricted stock is not allowed, so your income may not qualify for the minimum-down-payment jumbo mortgage. However, if you have been receiving the payments for at least two years, we can help put that money towards your stated income when you fill out the qualification forms.
Providing Convenient Access to Jumbo Loans with a Low Down Payment
As you can see, these minimum-down-payment jumbo loans come with many significant features that make them more convenient and more accessible. They make jumbo loans available when other programs won’t, so if you have any questions, or would like to see if you qualify, contact the team at San Diego Purchase Loans today.
We’ll help you find the right jumbo loans for your specific needs, so contact us today.