I have been a long time lurker on these forums and learned a lot from so many amazing people.
I planned to buy a home in CA in summer 2020 (First-time home buyer) and I am saving towards a downpayment accordingly. However, the realtor that I am working with told me about an amazing offer on new construction and the seller is motivated to close on final quick-delivery homes by this year-end. This single-family home is priced at $830k (+$120k free upgrades). I am saving towards buying a similarly priced new construction home in summer 2020 and at present, I only have $50k in my savings. With the summer 2020 plan, I would have saved about $120k considering vested RSUs + Annual bonus + tax returns + monthly savings and put 10% down on an $850k home.
But, with the current offer, I can only put 5% down on an $830k home and hardly any reserves at this time. I know there are really good jumbo loan programs with 10% down but I was hoping that the experts in this forum could let me know if there are any 5% down jumbo loan programs available.
Middle Mortgage Score - 747
Monthly Income - $13650 (excluding annual bonus + RSUs)
Monthly Car Payment - $1253 (Bought an expensive car this year as I had no plans to buy a home this year. It hurts now )
CC Utilization - 1% of $86.5k
No other debts
Property location - Mountain House, CA
Also, I am not eligible to join NFCU
I appreciate all the help and suggestions on this matter.
Without any reserves, you could get a Fannie Mae or Freddie Mac 1st mortgage for $484,350 and then finance the rest on a 2nd mortgage up to 95% CLTV (combined loan-to-value) - 2nd mortgages typically do not have any reserve requirements and either does a Fannie/Freddie 1st mortgage as long as it's a 1-unit owner occupied property.
There are also some loan programs that will finance up to 95% without any reserves either. Keep in mind both the 2nd mortgage and the jumbo programs that don't require any reserves will have higher rates than if you were to have 6 months PITI reserves (which is a common requirement for the jumbo loan programs which have the better rates).
It's not ideal, but you could purchase with one of the less attractive programs and then refinance once your RSU's vest so you'd have the reserves then (and possibly even some more equity, which helps you qualify for better terms).