Getting a jumbo loan for homes in San Francisco has been difficult this year. Many of the lenders have either gone out of business, or have dropped their programs.
Finally, some lenders are offering a jumbo loan program, which should help San Francisco home buyers buy homes in this expensive city.
Now in July, 2009, we are offering a jumbo loan up to $1,500,000 as long as the loan-to-value percentage is less than 70% for San Francisco homes. A 10% second mortgage is allowed. So, for a home purchase of $2,000,000, a home buyer could put as little as 20% down. A 720 credit score is required. The debt-to-income ratio can be no more than 40%.
This jumbo loan program is available for single family residences, as well as properties up to three units (there are a lot of multi-family properties in San Francisco). It is also available for condominiums. Second homes and investment properties are not eligible for this program.
Many lenders require two appraisals on loan amounts above $1 million. This jumbo loan program only requires one appraisal in San Francisco, which saves the client money!
Several types of mortgages are offered: 30 year fixed, 5/1 LIBOR, and 10/1 LIBOR. The LIBOR loans also offer an interest-only payment option.
With more jumbo loan products coming on the market, San Francisco real estate will hopefully thrive!
Do you need help structuring a loan, or getting a rate quote? Call me at (650) 222-0386, or e-mail me.
This is not an offer for extension of credit or a commitment to lend. All loans must satisfy company underwriting guidelines. Information and pricing are subject to change without notice. This is not an offer to enter into a rate lock agreement under any state law.
Phil - What about Marin County? Can I assume same program?
Hi Joe,
Yes, the program is the same for properties in Marin County.
Phil
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