For some areas of the country, buying a home can be difficult due to the high value of real estate. In these areas, a jumbo loan can be a great option to help potential homebuyers afford higher ticket prices. This type of loan provides a buyer with the ability to purchase a home beyond what the federal government will back through loan programs (like Freddie Mac and Fannie Mae). However, there are limits to these loans. When it comes to a jumbo mortgage with 5% down payment, it may or may not be an option available to some people.
How to Find a Jumbo Mortgage with 5 Down Payment
Not all lenders provide this type of loan. Those who do will place specific requirements on the borrower to ensure he or she meets the requirements for these loans. Specifically, a good credit score and solid employment or income will be very important factors when applying for this type of loan.
The good news is that many government programs are available at these higher values. Consumers may be able to find a loan through HUD (including an FHA loan) as well as the VA (for Armed Forces) for these loan terms. These organizations require a down payment of at least 3.5 percent for FHA loans. For VA loans, those who qualify may not have to pay any type of down payment. There are still other qualification requirements, and it is important to choose a lender that offers loan terms that fit a specific need.
When it comes to a jumbo mortgage with 5% down payment, there are options available for many people. The key is to find a lender that specializes in this type of loan. When you do, you may find it is easier to obtain this loan.
If trying for a jumbo mortgage with 5% down payment, look at Guaranteed Rate.
