The current conforming loan limit for a single-family home is $647,200. For Colorado borrowers conforming "High Balance" limits range from $647,200 to $862,500 based on the county where your property is located as of January 1st, 2022. Loan requests that exceed this limit will fall into the category of a jumbo loan.
How is a Jumbo Home Loan Different?
Jumbo loans are mostly the same as conforming loans except they are not backstopped by the government, rates tend to be .375 to .50% higher, and they have higher minimum credit score and liquid reserve requirements. Jumbo loans are made for borrowers with high-income seeking to buy a home in expensive neighborhoods within Colorado while conforming loans are designed to help the average homebuyer become a homeowner.
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 in these markets. Homeowners in this segment typically choose 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 homes for sale from $750,000 to well above $1 million dollars in highly sought after neighborhoods.
Are There Low Down Payment Jumbo Mortgage Loans?
Fortunately, there are some low down payment products like the 90% jumbo mortgage financing program up to $2,000,000. Home buyers who want this high LTV jumbo financing product will need to have 720 or higher middle credit scores, at least 6 months of the proposed mortgage payment in liquid reserves, and a debt-to-income ratio (DTI) of 45 or less.
The jumbo loan examples shown below feature no pmi for borrowers with less than 20-percent down and another method is to get a piggyback second loan to stay within the conforming limits.
UPDATE: As of Feb. 20, 2022, It's still available! The loan product with five percent down is available once again.
5 Percent Down Jumbo Mortgage - 95 LTV
Here's an example below on a $1.5 million dollar loan in the Denver metro area.
-- Loan program allows for a 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)
-- Borrower will need to have 9 months of PITI in liquid reserves
-- 1st & 2nd combo loans (2) loans; 80/15/5 (80% 1st loan, 15% financing 2nd loan, 5% down payment), 85/10/5 (1st loan is 85% of sales price ($1,275,000), 2nd loan is 10% of sales price ($150k), 5% down payment ($75k).
10 Percent Down Jumbo Mortgage - 90 LTV
UPDATE: As of Feb. 20, 2022, the single loan product with just ten percent down is even better.
— Jumbo loans with 10-percent down up to $2 million on a primary residence with no mortgage insurance. If you have credit scores over 760, the interest rate is in the low 4's as of late February.
Purchase Price : $1,750,000
Loan amount: $1,575,000
Interest rate: 4.375%
Monthly Payment: $7,864 (principal & interest)
If you need a jumbo loan with 10 percent down and you're self-employed be sure to review our bank statement mortgage qualifications for business owners, consultants and freelancers. It is a pretty convenient loan if you have large write-offs.
If you're buying a duplex or two units and will live in one of the units, it's 15-percent down up to $2 million. A second way to get a 90 LTV jumbo over $2 million is to cross collateralize or refinance another property that has equity.
Borrowers with FICO scores above 700, 720, or 740 thresholds will obtain better rates than someone with a 685 middle credit score. See below for more details or inquire online.
The 15-percent down jumbo product works the same way as the ten percent down program but the number of months of cash 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 $6.1 million 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..
Loans up to $10 million available
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, (Englewood, Greenwood Village, Littleton, Centennial, Highlands Ranch, Castle Rock, Cherry Creek, Cherry Hills Village, Parker) Evergreen, Franktown, CO Springs
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.