Jumbo loans with 5 down payment are still available throughout 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 below 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 2021 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. The 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 (depending on county) 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, Sacramento, San Diego, etc.
*Please note: some loan limits have recently been updated due to changing market conditions, please check the main home page.
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 $2,500,000 with 720+ credit score. Up to 85% LTV financing to $3,000,000 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