Why 2 loans can be better than 1: As housing prices continue to rise, so do loan amounts. You may know that each county has something called a County Loan Limit (You can click here to see them). But did you know once you go over those limits your loan is considered to be Non-Conforming, or “Jumbo”? So what? Well, once you’re in that category many things can change. Here are just a few: Higher Credit requirements Larger down payment requirements Property restricitons Borrower restrictions Higher Rates So you can see that it would be valuable to avoid these issues. Let’s talk about How to Beat the Jumbo Loan. One of the most effective ways to do this is with a 2-loan combo. To do this, we do a first loan up to the highest amount possible, while maintaining the best parameters. That might mean considering things like loan amount, Loan-To-Value ratio, etc. Then we add a 2nd loan that makes up for the difference. For example: Purchase Price = 850k 1st loan of 600k 2nd loan of 165k This gives us the best rates and terms on the first loan, and as a bonus, allows us only 10% down payment! Using this method could save you hundreds of dollars a month, and 10’s of thousands over the life of the loan. So why doesn’t everyone do this? Good questions
With prices in San Diego continuing to rise, Jumbo Loans are becoming more and more prominent. Today I’d like to share some inside info on Jumbo Financing and 1 trick you should know. We live in a little bit of an odd time, in that lending guidelines seem to be both tightening and loosening at the same time. There seems to be downward pressure on the conventional loan limits, while new avenues of financing are reappearing. In San Diego conventional lending only allows financing up to $546k,250. So if you are buying a home and need more $ than that, you find yourself in the Jumbo world. Now often referred to as non-conforming, jumbo loans can be costly, have higher rates, and stricter parameters. But on the flip side the rates have become extremely good and really aren’t all that far off from conventional loans. But there is a trick you should know about. A small number of lenders are now offering 2nd loans again to supplement your purchase. If you do it right this strategy can save you tens of thousands of dollars over the life of a loan. That’s because you can couple these loans in a strategic way to save money, increase parameters, and get a generally better loan. To learn more about these programs, click here to send me an email. In the subject line write
How to use a VA Loan instead of a Jumbo Loan: As home prices continue to rise, I’m seeing a lot of my clients find challenges in their loan amounts. That is, in San Diego county the Conforming Loan Limits are 546,250. Beyond that you are looking at Jumbo Loans. What I’ve found is that many of my clients have VA eligibility, but simply never used it. This is likely due to VA Loans historically being less competitive and harder to use. Well that’s no longer the case, and if you have VA Loan Eligibility, it might be time to rethink your strategy. Let’s look at an example. I recently helped some clients that wanted to refinance. Their existing loan is 675k. That would put them into Jumbo territory. In this case they would have needed 25% equity, a higher credit score, a higher rate, and a bunch of $ in the bank. By asking the right questions I found out that they had a VA eligibility that they had never used. “We just never needed it, as we always had a down payment”. In this case we were able to refi them out of their existing conventional loan, despite having only 10% equity in the property. This would have been impossible to do with a Jumbo loan. In addition, their interest rate was about .625% better with the
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The GreenHouse Group INC Broker CA BRE#:01859042
Co-Owner, Jesse Ibanez, Agent – Jesse@GreenMeansGrow.com 858-863-0261 CA BRE#: 01405643
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The GreenHouse Group INC is a full service Real Estate & Mortgage Planning Firm located @ 591 Camino De La Reina #103 San Diego, CA 92108. We'd love for you to drop by and say "hello" to us here at our beautiful offices in Mission Valley. Or, if you'd prefer to drop us a line you can call us anytime @ (858) 863-0261. We look forward to meeting you!