With the soaring home values, your buyer has trouble coming up with a 20% down payment for a Jumbo loan. What are the current low-down payment options?

0% down – VA loan up to $2.0 million

Borrowers who meet eligibility requirements can access loan terms better than what is available with conventional loans. For most, a funding fee between 1.4-3.6% of the loan amount is required, depending on the down payment size.  For first-use veterans, the fee is capped at 2.30% with 0% down and as low as 1.40% with 10% down. Furthermore, if the borrower has a service-related disability, the funding fee is completely waived!

3.5% down – Conventional loan up to $1.5 million – No MI

As interest rates increase, we will start seeing lenders think outside the box with more sensible programs that can provide financing for certain scenarios without substantially increasing their risk. This program is an example of that – extending the benefit we see in FHA loans allowing a homeowner to purchase with just 3.5% down. 

10% down – Conventional loan up to $2.0 million – No MI

With the more down payment, options open up, and terms generally improve across all loan programs.  With a 10% down, loan amounts can go up to $2.0m, but with the magnificent benefit of NO mortgage insurance AND the ability to qualify based on bank statements, which opens up new possibilities for self-employment borrowers.

As always, please check with your loan officer for qualifications based on loan amount limits, property type, and minimum Fico scores.