The Jumbo “Piggy Back” mortgage program is back in Orange County, CA. A few different lenders are now offering Home Equity Line of Credit programs that can be closed concurrently behind a first mortgage, helping to allow high income home buyers and owner to purchase or refinance with only 20% equity in the home.
80% Loan to Value on $1,225,000 purchase price
For those Orange County home buyers who want to take advantage of the low 30 year fixed rates current available on a Conforming program, check this out. It is possible to purchase a $1,225,000 home with only 20% down. The first mortgage would be at the maximum Conforming loan limit in Orange County of $729,750. A Home Equity Line of Credit in the amount of $250,000 would be funded concurrently, resulting in a down payment of $245,250.
Qualifying Requirements for Jumbo Piggy Back Loan Program
It goes without saying that the borrower needs to be well qualified. This is not a “stated income” program. The minimum FICO score is 720, but for the best pricing options the FICO score should be over 740. Two years tax returns are required and the debt to income can be up to 50% if there are strong compensating factors. The borrower should have at least 6 months reserves in the bank after the close of escrow. Depending on the purchase price, this means the borrower will need at least $40,000 in reserves after the closing, although lenders will typically use up to 70% of the balance of any retirement accounts towards that requirement. The property cannot be a condo.
This Jumbo loan program will allow plenty of homebuyers in cities like Newport Beach, Laguna Beach, and other coastal areas of Orange County the opportunity to purchase their dream home. As lenders begin to gain confidence in the high end Orange County real estate market, more of these type of programs will emerge.
To find out what Jumbo mortgage options are available for Orange County homebuyers, contact a knowledgeable Orange County Loan Officer. Your Loan Officer should be able to prepare loan scenarios specific to your situation.
Authored by Tim Storm, an Orange County, CA Jumbo Mortgage Loan Officer – Please contact my office at Alpine Mortgage Planning for more information about an Orange County, CA Jumbo loan. 877-786-4243 x 7.
Call our office today and see how we can help you and your family.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com