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Lending Options for Jumbo Loan with 5% down

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Valued Member

Lending Options for Jumbo Loan with 5% down

Hi all!

 

My name is Steven, and my wife and I were looking to buy a home down here in Orange County, CA soon. I've called a few banks and talked over the phone briefly with a lender referred to me by a friend, but I am figuring there has to be a more efficient way to get myself lined up with a lender who can approve me for a loan with my specific requirements. I am wondering if anyone in this community who has had experience with or knows of a lender I could reach out to with the following requirements?

 

1. 720 median FICO mortgage score. (there may be some options to improve this to the 740+ range, but I'll create a seperate post for that)

2. Home price of 900k, 5% down, so financing 850k.

3. 6 months of reserves available, possibly 7 to 8 but not more than 12

4. Income should not be an issue, total DTI looks to be around 35-36%

 

Based on my current research, it looks like my options are to find a primary lender who could do an 85 or 90 LTV (I know of a few who have claimed they can do this without MI), and then source a piggyback second mortgage lender so that I would end up with an 85/10/5 loan or 90/5/5 loan. Any suggestions or advice would be appreciated, thanks!

 

Steven

18 REPLIES 18
Valued Contributor

Re: Lending Options for Jumbo Loan with 5% down


@catinthehat wrote:

Hi all!

 

My name is Steven, and my wife and I were looking to buy a home down here in Orange County, CA soon. I've called a few banks and talked over the phone briefly with a lender referred to me by a friend, but I am figuring there has to be a more efficient way to get myself lined up with a lender who can approve me for a loan with my specific requirements. I am wondering if anyone in this community who has had experience with or knows of a lender I could reach out to with the following requirements?

 

1. 720 median FICO mortgage score. (there may be some options to improve this to the 740+ range, but I'll create a seperate post for that)

2. Home price of 900k, 5% down, so financing 850k.

3. 6 months of reserves available, possibly 7 to 8 but not more than 12

4. Income should not be an issue, total DTI looks to be around 35-36%

 

Based on my current research, it looks like my options are to find a primary lender who could do an 85 or 90 LTV (I know of a few who have claimed they can do this without MI), and then source a piggyback second mortgage lender so that I would end up with an 85/10/5 loan or 90/5/5 loan. Any suggestions or advice would be appreciated, thanks!

 

Steven


^^^^^

I just closed on a 10% down jumbo in Los Angeles county.

Only big banks that offered 10% down on a jumbo was wells fargo and us bank. 

Us bank also offered a 90/10/10 piggy back.

It worked for me because of 800+ mortgage scores, stable 10-year job history and $300K total income, and DTI = 0%.

Your FICO may be tough even for 10% for banks, let alone 5% down.

At 10% down Wells wanted 12 months reserves (can be from retirement)

 

I did not ask about 5% down programs but 10% was tough enough for my excellent stats. You can read my 10% down jumbo here: http://ficoforums.myfico.com/t5/Mortgage-Loans/My-1-Million-Mortgage-Journey-Here-We-Go/td-p/4575733

 

Try private mortgage brokers also, US bank was willing to do piggy back loans but there rates were relatively high, I went with Wells instead.

Maybe others on here can offer better advice than I can.

5% is a tough sell for jumbos for $900K purchase price in my opinion given you overall stats as described.

Message 2 of 19
Frequent Contributor

Re: Lending Options for Jumbo Loan with 5% down

I would look at NFCU as well. They have low down payment programs with no PMI. They do Jumbo .
Sept 15 -- All mid 400s
Jan 16 -- All mid 500s
Current: Knocking on 700s
Message 3 of 19
Moderator Emeritus

Re: Lending Options for Jumbo Loan with 5% down

Huh, NFCU has a first time homebuyer's program with $0 down up to $1M.  *boggle*

 

In general 10% is the best I'm aware of from the major lenders who dominate the jumbo space; if any one of them went to 5% I assume it would make the national news cycle even in this election year.




        
Message 4 of 19
Regular Contributor

Re: Lending Options for Jumbo Loan with 5% down

Wells Fargo, Regions, BB&T, and a few other have 0% down, no PMI with 720 FICO IF you are a physician, FYI.

Message 5 of 19
Moderator Emerita

Re: Lending Options for Jumbo Loan with 5% down


@tjmolly wrote:

Wells Fargo, Regions, BB&T, and a few other have 0% down, no PMI with 720 FICO IF you are a physician, FYI.


^^^I haven't seen this with zero down at 720 on a jumbo loan. 

Message 6 of 19
Valued Contributor

Re: Lending Options for Jumbo Loan with 5% down

based on my research unless you are a practicing doctor, lawyer, CPA 5% down is not really available in California, this mortgage broker/lender has 5% down for calif residents, but got to be a doctor, attorney, etc; their standard program for everyone else jumbo is 10% down:

 

http://cal-lending.com/california-home-loans/super-jumbo-loans.html

 

 

Message 7 of 19
Frequent Contributor

Re: Lending Options for Jumbo Loan with 5% down

Again, NFCU will do a jumbo with 0% down. In California.
Sept 15 -- All mid 400s
Jan 16 -- All mid 500s
Current: Knocking on 700s
Message 8 of 19
Valued Member

Re: Lending Options for Jumbo Loan with 5% down

Thanks for the replies everyone! I intend to document my journey here similar to how others have in the past so people in my boat can hopefully learn something. I am a municipal water design engineer so I unfortunately would not qualify for any of the great programs offered to doctors and the like. My grandfather did serve in the Navy however so there is a chance NFCU could work out.

I would love to be in the boat where I have 10% down with an 800 credit score but unfortunately that just isn't reality. My credit is perfect with a 13 year history minus a bogus verizon collection account in 2014 Verizon refuses to admit fault to and will not remove despite my best efforts. I suspect it is suppressing my score by a significant amount. My wife's credit is also perfect and luckily she never had to deal with Verizon, so all three of her FICO 8 scores are 800+ so I never bothered pulling her mortgage scores.

Like most of you I'm sure, my work schedule hasn't been forgiving to say the least and it's been a slow process getting in touch with any lenders. I did get a message back from Guild Mortgage offering 5% down on jumbos up to 1M. 740 FICO required and 12 months reserves. You also are required to pay MI. Not an option for me, so cross them off the list. Will contact NFCU next.
Message 9 of 19
Valued Contributor

Re: Lending Options for Jumbo Loan with 5% down


@catinthehat wrote:
Thanks for the replies everyone! I intend to document my journey here similar to how others have in the past so people in my boat can hopefully learn something. I am a municipal water design engineer so I unfortunately would not qualify for any of the great programs offered to doctors and the like. My grandfather did serve in the Navy however so there is a chance NFCU could work out.

I would love to be in the boat where I have 10% down with an 800 credit score but unfortunately that just isn't reality. My credit is perfect with a 13 year history minus a bogus verizon collection account in 2014 Verizon refuses to admit fault to and will not remove despite my best efforts. I suspect it is suppressing my score by a significant amount. My wife's credit is also perfect and luckily she never had to deal with Verizon, so all three of her FICO 8 scores are 800+ so I never bothered pulling her mortgage scores.

Like most of you I'm sure, my work schedule hasn't been forgiving to say the least and it's been a slow process getting in touch with any lenders. I did get a message back from Guild Mortgage offering 5% down on jumbos up to 1M. 740 FICO required and 12 months reserves. You also are required to pay MI. Not an option for me, so cross them off the list. Will contact NFCU next.

^^^^

best of luck to you...I hope you get what you are after......

Message 10 of 19
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