Some home buyers today require higher loan amounts just not offered through FHA or Conventional mortgage programs. Additionally, many of these buyers do not have the 20% down payment required by most lenders and banks on their jumbo loans.
JMS is now proud to offer Colorado home buyers Jumbo financing solutions up to 95% loan-to-value. The Denver 95% jumbo financing program offers both fixed interest rates and ARM’s with no private mortgage insurance.
The new jumbo loan program is targeted to borrowers in higher cost locations like Denver, Aspen, Colorado Springs and Boulder who want to limit their down payment to 5% of the purchase price. The minimum loan amount for the new program is $510,400 and the maximum is $2,000,0000. The program is available to qualified applicants in all states with a credit score of at least 700. The applicants should also have some saving reserves and debt-to-income ratio requirements we will discuss below.
- Zero PMI, or mortgage insurance on 95% jumbo financing (save up to $500 a month PMI)
- 95% financing to $2,000,000 with no PMI. Credit scores should be 700 for loans below $1.5m. 740 credit for higher loan amounts. Choose from 1 single loan or a 80/15/5 combo mortgage. Great for higher cost areas like Denver, etc.
- Great for refinancing existing high-cost loans and getting rid of your current mortgage insurance
- Purchase with only 5% down payment – great for doctors, physicians, attorneys and other professionals that have the income but lack a large down payment.
- Rates starting in the 3-4% range.
- Reduced closing costs option available
- The 95% jumbo is for owner-occupied, purchase and rate term transactions. Financing is available for 1 Unit Single Family Residence, Attached or Detached Housing and select condos. Second homes are also eligible.
- Other jumbo financing options available for investment properties. Most of these programs will require at least 20% down payment.
- Smaller non-jumbo conventional loans can still be offered up to $510,400 with a minimum score of 620.
So why the 95% Jumbo Loan? There are a few reasons why a home buyer may want to only put down 5% – even if they have a higher down payment:
- No large down payment due to a pending sale of current residence – while the real estate market has seen a marked improvement, some homes make take longer to sell. If you are looking to move forward with a new purchase before your existing home sells, this may be a good option.
- Retain savings in higher yield investments – check with your financial advisor, but sometimes it makes sense to put less down and keep your money working for you.
- Home Improvements, etc – Some houses need updating; by only putting down 5%, you can save the rest of your money for needed remodeling, new furniture or other improvements.
Please also note the following options for buyers that have 10% + down payment
- 90% Loan to Value: Up to $3,000,000 with 720+ credit score.
- 85% Loan to Value: Up to $3,500,000 with 740+ credit score.
Questions? please see this link for more details. Colorado: Denver, Colorado Springs, Aurora, Fort Collins, Lakewood, Thornton, Arvada, Pueblo, Westminster, Centennial, Boulder, Highlands Ranch, Greeley, Longmont, Loveland, Grand Junction CO. Denver 95% Jumbo Financing