Need Help - What Banks I can go to for Jumbo Loans with less than 5% downpayment?

[Anonymous]

Hello,

I live in the state of Wisconsin.  I'm currently living in a Condo on a land contract, which I pay $1,250/month.  My land Contract will end this year with option of extension.  I am thinking of not extending the contract.   I would like to look into buying a home and preparing myself.  The homes I'm looking at are mostly around 400-500K.   I make about 120K (Verifiable income / documented).  I work two jobs.   My fico score 5, 4 & 2 ( 721, 709 , 711).   My regular fico 8 is around 750's.  I already paid off my car.   The only on going payment I have is my student loan, which I pay $168.26 monthly.   As for my credit cards I have a balance of about $4K, which I plan to pay off shortly.  I don't have much cash reserve.   I have only about 40K in my 401K and been working in the same career for 7 years but in the same work place for 4 years. 

My question is, is there a loan program out there for Jumbo loans with low downpayment?   How much can I qualify for, if I do qualify?   Any insight or advise would be greatly appreciated.

Also by the way, I'm not in the military and does not have family in military. I do have relatives in military - my niece's husband.   I was thinking of NFCU, but sadly I'm not quality to join.

This will be my first time buying a home by myself.   I have purchase home in the past with my ex-husband.

Thank you!

[JVille]

First step is to sit down with your local bank or mortgage broker to get “PreQualified”. I think you need to get an idea about what you qualify for. Using the income from a second job has strict rules and is not always counted.
Best bet is to go see a lender to discuss your situation.

[Anonymous]

Thanks Jville.  I plan to go talk to my credit union and probably other banks, when I do have some time.  Just not sure what other banks would be the best bet as far as having a product I'm seeking and most likely will approved me.    I also try to avoid any hard pulls on my credit report until I know my likely chance of being approved.

I been working two jobs for 4 years now and very stable.  I didn't know there are rules about a second job?   oh my.  I have a lot to learn!!

[ShanetheMortgageMan]

Jumbo loans are loan amounts that exceed $453,100.  When financing up to a $453,100 loan amount, there are conventional loan programs that allow as little as 3% down.  When financing above $453,100 then there are 5% down programs. 

You can also do a 1st/2nd combo mortgage, where you finance up to $453,100 on the 1st mortgage and the remainder on the 2nd mortgage, with a 5% down payment (haven't seen any 2nd mortgages that go to 100% of the home's value yet).

Your debt to income ratio should be fine for what you want to purchase.  As long as your 401k allows it then you can also take a loan out from your 401k (or via a hardship withdraw) to use as the down payment, if you wish.

[homeloanexpert]

The only issue I can see is you have two jobs. Most loan programs will require you have a two year history of working a 2nd job. Other than that your credit, income and debt all look great. If you stay at or under conforming loan limits, you can get into a home with as low as 3%. If you are short on funds, there is a DPA (Down Payment Assistance) Program without income limits, that can cover your down and you or the seller can cover your closing costs. Let me know if you have any additional questions.

Best wishes to you!