Jumbo Home Loan Financing
Due to high home values in Boulder, Denver, Steamboat Springs, Vail, Aspen and other cities in Colorado, jumbo home loans are commonly used to buy a home. Homeowners in this segment typically want to own a luxury home that has views of the Flatiron Mountains, Green Mountain, Rocky Mountain or another amenity. Basically, a jumbo mortgage helps facilitate the financing of a home in upscale neighborhoods with homes for sale from $600,000 to well above $1 million dollars.
The current conforming loan limit for a single-family home is $453,100. For Colorado borrowers, conforming "High Balance" limits range from $529,000 to $636,150 based on the county your property is located, as of January 1st, 2018. Loan requests that exceed this limit will fall into the category of a jumbo loan.
Low Down Payment Jumbo Mortgage
Fortunately, there are some low down payment products like the 95% jumbo mortgage financing program up to $2,000,000. Home buyers who want this high-LTV jumbo financing will need to have a 740+ middle credit score, at least 9 months of the proposed mortgage payment in liquid reserves, and a low debt-to-income ratio (DTI).
5 Percent Down Jumbo Mortgage - 95 LTV
Here's an example below for a $1.5 million dollar loan in Greater Denver.
-- Maximum purchase price of $1,578,000 * .95 = $1,500,000 loan
-- utilize one loan such as 95/5 (95% financing with one loan and a 5% down payment)
-- 1st & 2nd combo loans (2) loans; 80/15/5 (80% 1st loan, 15% financing 2nd loan, 5% down payment), 85/10/5 (85% 1st loan, 10% financing 2nd loan, 5% down payment).
10 Percent Down Jumbo Mortgage - 90 LTV
This loan product is currently available for borrowers with a minimum 680 middle FICO score up to $2.5 million on a primary residence. If they have a 740 middle FICO score or higher, they can borrow up to $3 million.
Borrowers with FICO scores above 700, 720, or 740 may obtain better rates than someone with a 685 credit score. See below for more details or inquire online.
The 15-percent down jumbo product works the same way as the ten down program but the number of months of reserves is usually less.
Jumbo Mortgage Advantages:
There are many benefits jumbo loans offer when compared to private money lenders to finance more expensive homes. The first one should be obvious. Jumbo loans tend to have a lower interest rate than a private money lender like a bridge loan.
30-percent down on a $5.7M home and 35-percent down on $6.1M home (excludes log cabins or condotels)
Financing programs available up to $10+ million.
No mortgage insurance option or lender paid insurance
As low as 5% down payment to $1.5 million; 10 percent down to $2.5 million..
Fixed and adjustable rate mortgage (ARM) options available
Quick pre-approvals with all required documentation. In-house underwriting on our products.
If you have any other questions please contact us online or feel free to call 7 days a week. If you know meet the guidelines, just apply online for a jumbo loan.
Serving all of Colorado: Boulder, Denver, (Greenwood Village, Castle Rock, Cherry Creek, Cherry Hills Village, Englewood, Evergreen, Franktown, Parker),
Breckenridge, Steamboat Springs, Telluride, Vail, Copper Mountain, Silverthorne, Keystone
Aspen, Beaver Creek, and Snowmass Village.
1. Requires middle credit score of 720. Contact us for more info.
2. Requires a middle credit score of 680 or more. Please inquire for additional conditions.
Not all borrowers will qualify. This is not a commitment to lend. Loan approval is subject to underwriting.
The programs above do not include homes with 20 acres or more, log cabins, hobby-farms, or agriculturally zoned properties.