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 $647,200 and the maximum is $3,000,0000. 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 $1,500,000 with no PMI. Credit scores should be 680. Choose from 1 single loan or an 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 2.5-4% 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 $647,200 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 decor or other improvements.
Please also note the following options for buyers that have 10% + down payment
- 90% Loan to Value: Up to $2,000,000 with 720+ credit score.
- 85% Loan to Value: Up to $3,000,000 with 720+ credit score.
Questions? please see the Jumbo Purchase page 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.