Jumbo loan for purchase & additions is it possible?

8 Replies

We have been looking for a bigger house than our current home and that should be at least 2750+ sqft. Most of the properties we came a crossed were either over our budgets or too small. Our budget is 1.4M with 400k cash. Houses for the size we want in the area cost 1.5M-1.8M. But houses that is smaller size and need renovation is probably 1-1.2M (1600-1800 sqft).

I saw some properties that with decent size lot, 1880 sqft for asking price at below 1.1M. if we add 1000 sqft to the house (budget is after additions and renovation the total price 1.4M with 400k cash) and it should worth 1.5M-1.7M So up front we need to come up with $520k cash for 20% down of 1.1M + 300k renovation. And I'm not even including rental that we need to pay with mortgage during the construction period which can drag to 10 months and maybe some unexpected expenses.

I wonder if there such a loan that fits our need?

Originally posted by @Jessica Chen :

We have been looking for a bigger house than our current home and that should be at least 2750+ sqft. Most of the properties we came a crossed were either over our budgets or too small. Our budget is 1.4M with 400k cash. Houses for the size we want in the area cost 1.5M-1.8M. But houses that is smaller size and need renovation is probably 1-1.2M (1600-1800 sqft).

I saw some properties that with decent size lot, 1880 sqft for asking price at below 1.1M. if we add 1000 sqft to the house (budget is after additions and renovation the total price 1.4M with 400k cash) and it should worth 1.5M-1.7M So up front we need to come up with $520k cash for 20% down of 1.1M + 300k renovation. And I’m not even including rental that we need to pay with mortgage during the construction period which can drag to 10 months and maybe some unexpected expenses.

I wonder if there such a loan that fits our need?

What city are you looking in? 

The closest you will come to accomplishing your end goals (I'm focusing on that and ignoring the particular proposed method to get there... the end goal matters, not the method) will be some of the 95% LTV jumbo stuff that is out there.

Use the money you kept in your pocket by only putting 5% down to accomplish the reno.

Refinance afterwards to lower the rate back down.

Originally posted by @Jessica Chen :

@Chris Mason i was told 20% down is mandatory because loan amount exceeds 625k cap

 20% down is mandatory for that particular lender. Fortunately for you there's an entire marketplace of lenders with varying jumbo mortgage products that all differ from each other in both minor and major ways.