Could it be true….a 5% down payment on a Jumbo Loan
Believe it or not, it actually does exist! It’s a home loan program which offers a 5% down payment on Jumbo Loans with no private mortgage insurance. Imagine that, in this current lending market where most lenders would require a minimum of 20% down and most likely a 25%-30% down payment on a jumbo loan, BBVA Compass Bank is allowing professional to put down just 5%. This loan program is designed specifically for professional clients; doctors, dentists, attorneys, etc and has the potential to offer these buyers a substantial savings.
For example if a buyer is purchasing a home for $550,000. The 25% down payment required by most lenders would be $137,500. Compare that with Compass Bank’s 5% down payment program, which would be $27,500. This is a savings of $110,000!
Details of the program are listed below:
- Jumbo Financing available with high LTV – 95% LTV up to $1,000,000, 90% to $1,250,000, 85% to $1,500,000, 80% to $1,750,000
- Private mortgage insurance is not required – significant over the life of the loan
- Single family homes, townhomes, lofts, and condominiums are eligible
- Student loans that are deferred for 12 months are not counted in qualifying ratios
- Refinances with high loan-to-values are also available
- Eligible borrowers include: resident or practicing physicians, attorneys, oral surgeons,
dentists, CPAs, CEOs, CFOs, CIOs, COOs or chairmen of publicly traded companies,
executives in direct report to the CEO or chairman of a publicly traded company.
I have had several clients take advantage of this unique program this year. Contact me today if you would like more details or would like to get pre-qualified for this program.