Jumbo 10 Percent Down Program

In high-cost areas like San Francisco, Los, Angeles, Seattle, New York, South Florida, and Boston, many homebuyers who qualify prefer not to put 20-percent down. In addition, existing homeowners who purchased a few years ago have realized increases in equity and may want to cash-out some of the gains. In San Francisco, the median home price has surpassed one-million dollars so being savvy when it comes to your financing options have never been so important.

A couple of solutions for homeowners and buyers alike is a 10-percent down mortgage or 90% LTV financing. Two attractive options exist for borrowers. The first is an 80/10/10 loan where a buyer needs to come in with a 10-percent down payment on a purchase transaction up to $1M.

Here's an example of a 90 LTV Jumbo Loan:

Purchase Price: $1,000,000 (UPDATED April 2017: now 90% to $2.5 Million)
Loan amount:   $900,000   - Just one loan with NO Mortgage Insurance
Down payment: $100,000 -   from borrower
End Result: 90% LTV financing
What's Needed?: 9 months liquid reserves and a 680+ credit score
This could really be a good option. Consider financing your home with these jumbo loans in California or other states.

The second method is also 90% financing but is structured as follows:
Purchase Price: $1,000,000
Loan amount:   $800,000   - 80% 1st loan on a 30-year fixed rate -
Second loan:     $100,000 -   - 10% 2nd loan either fixed rate or line of credit
Down payment: $100,000 -   from borrower
End Result: 90% CLTV financing

This may be a better option if you have a credit score over 730 and 9-12 months of reserves. You get a jumbo first mortgage and a piggyback 2nd loan.

We also offer Jumbo VA loans in high cost counties that usually come out to be less than 10-percent down when dealing with properties one-million dollars and below.

Keeping more assets available has advantages

  • The first if you have an investment portfolio, it can remain untouched and keep earning dividends/returns or gaining in value.

  • You may actually qualify for another real estate property that is available

  • By financing more of the purchase, your itemization of mortgage interest tax write-off should go up.

There are more purchase loan programs over $1.5M that only require 15% down from the borrower's own funds in order to avoid the requirement of paying mortgage insurance.

Low down payment highlights:

10% down 90% financing up to $2.5 million with “full documentation” - job, income, and assets.
now offered in: ALL STATES