Jumbo Loan Question

[Lootmeister]

Hi,

If anybody can shed some light on this, Id sure appreciate it because I dont want my first set(s) of answers coming from a shark tooth local mortgage guy who views me as a commission lol

Situation: Looking to buy Oregon coast real estate which is blistering hot. Tons of growth going on there and planned as well. Not only buying for potential investment, but to better quality of life! (This would not be primary residence; its 200 miles from my house so could be called a vacation home.)

Looking to purchase an ocean front house in between 750k to 1.5 mill.

Last year's taxable income was 250k. This year after the accountant gets done I will be able to show 500k taxable income. Only had this good income for 2 yrs.

Credit score is 684

I currently own a house worth 650k or so. I owe 319 on it. (Owing 211 on 1st mortgage and 108 on 2nd)

I also own a small rental thats worth 130k or so with 69k being owed.

I dont know if it matters, but I have 80k in retirement and another 100k in stocks. (do banks look at that for stability?)

I want to finance as much of the loan as possible. Reason: I can get rents of $400/night and want to leverage as much of this by paying for it with opm through rents, (other peoples money!)

What is the least I have to put down to get my foot in the door of one of these beach beauties?

My local mortgage guy told me expect to pay 1/3rd down on anything over 500k. With all the banks competing these days I would expect that I could get something better. He admits that he doesnt write big loans very often and it seemed that he was in unfamiliar territory.

I dont have any problem stretching the loan out to 40 yrs to lessen the pmt. Im just looking for the cheapest payment here. Not real worried about how much interest there is, because I can make bigger than the min. pmt as well as it's going to appreciate or at least thats what I believe (hope that doesnt sound too foolish, Ive done my homework!)

Anybody have any insight on how little I can put down to get my feet in the door?

Any insight anybody can provide would be greatly appreciated!

Thanks!

Kevin

[kyle422]

"My local mortgage guy told me expect to pay 1/3rd down on anything over 500k."
I've sold houses above $500k in which the buyer did 100% financing. Shop around for a new mortgage broker.

[kensmith]

You can do way better than 33% down. Your credit should be good enough to do a stated income loan and that might be a good bet if you don't care about the interest rate to much. I would find a new loan officer, also at that price range I would talk with a Wells Fargo person. They have some nice Jumbo programs including 100%. PM me if you need the name of one, I can ask my guy here for a referral to one in Oregon.

[Lootmeister]

Thanks Guys. I do in fact have a Wells Fargo right here in my town. I'll check that out.

I REALLY appreciate the insight. If anybody has anymore thoughts it'd be greatly appreciated!

Thanks!

Kevin

[Homesurfer]

You shouldn't have to put 1/3rd down.

I doubt that you will get away with calling it a second home or a vacation home, since it is relatively close to your existing primary residence. The only exception might be if the property was located in a resort area.

[offalyniceguy]

I know of a company that will do a second / Inv. Property for 100% financing with nothing down. From the desription you have givin me you have alot of options going for you. It looks like an easy deal in fact for someone who knows what they are doing. You would do a 80% first and a 20% 2nd of course. Let me know if you would like me to look into this for you. Thanks, Levi

[glenng]

Levi,
Could you PM me with your mortgage broker's contact information - I have several investors that would love the 100% financing. I would too, they can pull out their equity and re-invest in other properties = commission income.

Thanks.