I am looking forward to buy a property and in the closing status. I am self employed and the income reported on the taxes does not allow me to qualify for a conventional financing. I am pursuing "bank statement loan option". So far everything is looking good. No doubt the rate is very high but I am told that I can refinance later after six months. The purchase value of the house is 920K.
The option I am going for is around 15% down. With this option the loan value is around $782k. I am also looking to initiate conversation that if I can go with 10% down making the loan value to be around 828K. Off course there is closing cost but thats is taken care off.
The appraisal value of the house once settled and few things are fixed is around is around 1.1 to 1.2 M (The neighbourhood values are even much higher). In either case with 15% down or 10% down I have a LTV more than 20% moving in.
The question is looking from the refinancing perspective what would be more beneficial. Going with 15% down or 10% down ? The higher conventional limit in my area is around 736K. Please correct me even if I go for a jumbo loan option later for refinancing. Can I get a better rate like in 3's% or 4's% and since my LTV will be much higher than 20%. I am confused ...Please assist with best possible strategy.
Is this a buy and hold or are you gonna live in it?
if you keep the loan amount close to the " high balance conforming " limit - you will have better / more refinance options and likely better or similar rates as jumbo programs .......most conforming program guidelines are easier to work with compared to jumbo programs