10% Down On Jumbo Loan For Second Home

11 Replies

Hello All,

I've seen a lot of back and forth searching previous posts on this topic, but I can't find a consistent answer.

Last week, I reached out to my lender about getting a loan on a STR in TN and she says she cannot provide a jumbo loan on a second home with only 10% down - that a product like this does not exist.

I've read that some folks on BP have been successful in getting this type of loan, but I cannot confirm this information. 

Is there anyone here on BP that can fill me in on the most recent and most accurate information pertaining to this question?

Thanks in advance,

Aaron 

@Aaron Akins it would depend on the loan amount. What purchase price and potential loan amount are you looking at?

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Originally posted by @Aaron Akins :

Hello All,

I've seen a lot of back and forth searching previous posts on this topic, but I can't find a consistent answer.

Last week, I reached out to my lender about getting a loan on a STR in TN and she says she cannot provide a jumbo loan on a second home with only 10% down - that a product like this does not exist.

I've read that some folks on BP have been successful in getting this type of loan, but I cannot confirm this information. 

Is there anyone here on BP that can fill me in on the most recent and most accurate information pertaining to this question?

Thanks in advance,

Aaron 

 There are jumbo loans for 2nd homes at 10% down. Find a local mortgage broker that works with more than one lender. Several of the largest wholesale lenders offer this.

Originally posted by @Julee Felsman :

@Aaron Akins It is definitely possible to secure jumbo 90% financing on a second home. I'm helping a few clients with such loans right now (including a couple of purchases in the Smokies in Tennessee). 

Thanks you your response Julee. It seems that DTI is a common obstacle with such loans.

@Aaron Akins This is something i recently learnt the hard way. Don't assume because 5 banks tell you something isn't possible that it's not. All banks have different guidelines and I find that local credit unions and portfolio banks are the best at offering the best options. Keep looking and your gonna find one

Originally posted by @Bobby Forsythe :

@Aaron Akins This is something i recently learnt the hard way. Don't assume because 5 banks tell you something isn't possible that it's not. All banks have different guidelines and I find that local credit unions and portfolio banks are the best at offering the best options. Keep looking and your gonna find one

Thanks Bobby!

@Aaron Akins

UWM does these all the time for 89.990LTV.  Just a hair over 10%... Lol.

I am not licensed to do that type of loan in TN, but I have many in my network whom are.  If you are looking for a broker, let me know and I can send your info over to one or two of them.

Cheers!

@Aaron Akins DTI is generally going to be capped at 43% or 45% for more jumbo loans. A very few go higher, but at 10% down on a second home, 43% is a good number to plan around.