California Jumbo Loan Options 95%: Jumbo loans with 5 down payment are back in California. These new low down payment jumbo programs allow CA homeowners to take a mortgage loan that exceeds the conforming loan limits set by Fannie Mae or Freddie Mac.
With interest rates so low some homeowners would like to consider a jumbo loan to get more house for their money. In addition, the 5% jumbo loan does not require monthly mortgage insurance like many other loans with a down payment under 20%. Below we take a brief look at the jumbo loan basics and discuss all the things you need to know.
First, a jumbo mortgage is a home loan that exceeds the typical lending limits of Freddie Mac and Fannie Mae, FHA or the Veterans Administration. Loans sold to either Fannie or Freddie are called conventional loans or conforming loans because the mortgage amount “conforms” to the underwriting guidelines and lending limit of these companies.
Loans above the following limits are called jumbo loans ( there are expectations in higher cost locations in CA around LA, San Francisco, etc. Please see the most recent list of California Conforming Loan Limits
Until recently, borrowers had to put 10-20% down if they wanted to purchase a home and borrow over the conventional loan limit. Our new 95% Jumbo mortgage with no monthly PMI is a great financing option for California borrowers who want to purchase a home or refinance.
This program will allow buyers to purchase a home up to $2,000,000 with only 5% down, and have the option of No monthly PMI. There are not many banks, lenders or mortgage companies offer this program today. This is especially good for borrowers in a higher-priced luxury location like San Francisco, Los Angeles, Malibu, San Diego, etc.
A few notes for the 95% Jumbo loans:
- 95% financing is only available for applicants that can fully document income, assets, etc.
- To obtain the max 95% financing, borrowers will need a 700+ credit score. 95% loans above $1.5m will require a 740 score.
- The program can be used to purchase a single-family home, townhome or condo.
- Investment property purchases are permitted but will require a slightly higher down payment of 20% down or more. 5% down is only available for primary and second home transactions.
- Jumbo rate-term, plus cash-out refinance options are available for homeowners that already have a high-cost mortgage.
- Jumbo interest rates can vary based on the term and credit score. Borrowers will choose between secure fixed rate options or adjustable rate terms (ARM)
- Applicants can choose an interest rate buy down or reduced closing costs options.
- Higher loan amounts available. Up to 90% LTV financing to $3,000,000 with 720+ credit score. Up to 85% LTV financing to $3,500,000 with 720+ credit score. Please contact us if you are financing over $4mil.
Have questions? Please call us at Ph: 800-962-0677 or just submit the Quick Contact form on this page.
Jumbo Mortgage Source specializes in 95% jumbo loans in throughout the U.S including CA: Los Angeles, San Diego, San Jose, San Francisco, Fresno, Sacramento, Long Beach, Oakland, Bakersfield, Anaheim, Santa Ana, Riverside, Stockton, Chula Vista, Fremont, Irvine, Modesto, Fresno
What is the Jumbo loan limit in San Diego? I want to purchase a home priced at $900,000, what down payment amount would be required? I have great credit, and stable income.
The loan amount limit depends on the down payment. Generally, 5% down will be limited to 1.5mil and 10% down to 3mil for approved home buyers. thank you.
Are the loan amount limits in LA /Orange County higher? I know this is a more expensive location, I would like to put down only 10%, home purchase price is 3.25mil. Also, is there a payoff clause or penalty with the loan?
The 10 percent down options are capped to 3mil. Keep in mind, this is the loan amount limit, not the home purchase price. So in your case, you should be ok up to a purchase price of $3,300,000 assuming you meet the other qualifying parameters. In addition, there are no early payoff clauses.
Thank you for the questions.
What type of 30-yr fixed interest rate should I expect for a 95% financed jumbo loan with a 755 credit score? Also, are they available for multi-unit / multi-dwelling properties that will also be your primary residence. I am in the market for a 2-4 plex or a property with 2 single family homes zone appropriately for renting out the other home.
Most multi-unit properties will require 10% down. The exact down payment and rates will depend greatly on the final loan amount. Please submit the Quick Contact form a specialist will contact you to review in more detail. Thank you.
Can I use the program to purchase a condo in LA?
Yes, most condos are approved for the program
Quick questions:
1. with high stable income and a score of around 840, can I put 10% down on a single family house ?
2. any hidden fees? how about the rats nowadays? This will be in Orange County, CA
Thank you for your question. 10% down is generally fine assuming your loan amount will not exceed $3mil. Additionally, there are 5% down options for lower loan amounts. No upfront points/fees, interest rates are currently near all-time low levels for all mortgage programs.
This is also available for Jumbo refinance? I know mortgage rates have went down a lot, so I want to see if it makes sense for us to do this. We currently have a 5.25% rate.
Yes, regular rate reduction refinance transactions are eligible.
thank you