Many active home buyers are probably aware that mortgage options, especially Jumbo loans, became more restrictive in response to the changing economic impacts of the pandemic a few years ago. However, in 2024 as things have returned 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.
Santa Barbara Loan Amount Limits:
5% down payment Jumbo programs are still available for 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
The base conforming loan limits in California can range from $766,550, all the way up to $1,149,825 for a 1-unit primary residence. Santa Barbara County sits right in the middle at $838,350. Some lenders are still offering first and second-mortgage combo loans 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. This is commonly referred to as a “piggy-back” loan structure and it can offer serval advantages, most notably a lower interest rate on the primary first mortgage. Contact us today to see what loan structure works best for you.
Refinance Programs Available in 2024:
Interest rate reduction and cash-out refinance programs remain for homeowners with low loan to values below 80%. Mortgage rates have increased significantly over the past few years. However, many experts believe interest rates will start decreasing in 2024. This could provide a good time to consolidate debt or fund needed home renovations.
Buyers should also note that ALL programs will require full documentation, qualifying debt to income and strong credit to be eligible. To learn more, simply submit the Quick Contact Form on this page or call us 7 days a week.