Many Denver 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.
Colorado home buyers now have new Jumbo financing solutions up to 95% loan-to-value. The jumbo financing options offer both fixed interest rates and arms with no private mortgage insurance.
The new jumbo loan program is targeted at borrowers in higher-cost locations like Denver, Aspen, Vail, 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 $726,200 and the maximum is $4,500,0000 for higher down payments.
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 (depending on location) 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 Boulder and Denver, Vail, etc.
- Great for refinancing existing high-cost loans and getting rid of your current mortgage insurance
- Purchase with only a 5% down payment – great for doctors, physicians, attorneys, and other professionals who have the income but lack a large down payment.
- 2/1 and 3/2/1 interest rate buydown options.
- 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 Residences, Attached or Detached Housing, and select condos. Second homes are also eligible.
- Other jumbo financing options are available for investment properties. Most of these programs will require at least a 20% down payment.
- Smaller non-jumbo conventional loans can still be offered up to $726,200 with a minimum score of 620.
So why choose a low-down-payment Jumbo? 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 may 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
- Second homes / Vacation homes are permitted with a 10% down payment.
- 90% Loan to Value: Up to $3,000,000 with a 700+ credit score.
- Special Bank Statement jumbo programs for self-employed buyers.
- 85% Loan to Value: Up to $3,500,000 with 720+ credit score.
Questions? Please see the Jumbo Purchase page for more details. Serving Colorado: Denver, Colorado Springs, Aurora, Fort Collins, Pueblo, Boulder.