Many active home buyers are probably aware that mortgage options, especially Jumbo loans, became more restrictive in 2020 and 2021. Lenders continue to adjust mortgage guidelines in response to changing economic impacts of the pandemic. However, in 2022 as things slowly return to normal many Jumbo financing options are available again.
High balance Jumbo mortgages were probably restricted the most during this time. In fact, some banks abandoned high-cost loans altogether for a few years.
The good news is there are still reduced down payment options available to Santa Barbara home buyers with less than 20% down payment. It’s important first to note that the highest loan to value programs (95% and 90%) are still available to qualified borrowers.
Loan Amount Limits:
5% down payment Jumbo programs are still available up to $2,000,000 loan amounts, depending on the property location/county. 10% down is available up to $2.5mil for most of CA. Higher 15-30% down payment Super Jumbo programs are still available up to $10mil
*MORE: Be sure to read about the new 97% Jumbo loan on the main home page.
The base conforming loan limits in California can range from $647,200, all the way up to $970,800 for a 1 unit primary residence. Santa Barbara County sits right in the middle at $783,150. Some lenders are still offering first and second mortgage combo mortgages to well-qualified buyers in California.
Typically the first (primary) mortgage amount will be limited to whatever the max conforming loan limit is for the county. Then a second mortgage can oftentimes be added to “fill the gap” up to 90% or 95% depending on the scenario.
Select Refinance Programs Still Available:
Interest rate reduction and cash-out refinance programs remain for homeowners with low loan to values below 80%. Mortgage rates are currently still pretty low and the difference between Conforming loan rates and Jumbo rates has increased slightly since the beginning of the year as noted by CNBC.
Buyers should also note that ALL programs will require full documentation, qualifying debt to income and strong credit to be eligible. To get the most up to date requirements, we encourage home buyers to call or submit the Quick Contact Form on this page.