San Diego 10% Down Jumbo Home Loan - Rates, Limits & Details (2023 Update)

(Please note - these numbers below have been updated for 2023 and are specifically for San Diego however we can do loans throughout California. We do our best to make sure everything is correct at the time you are reading it.)

In this post I break down the ins and outs of the jumbo home loan in San Diego

This mortgage loan is great for any borrower that's buying over the max super conforming limits of $977,501, have at least 10% to put down, want the ability of an adjustable or fixed loan, and want to close in 21 days or less. 

In this post I go over:


Here's the main points and highlights of the program... 

(Please keep in mind I am approved with 40 +/- wholesale lenders in the state of California and each lender will have different Jumbo loan requirements. Things like credit scores, months reserves, DTI's, etc can vary from lender to lender and the below are used for examples.)

  • The minimum down payment is 10.01% (This means you will have a minimum loan amount of 89.99% of sales price). 

  • You will have no mortgage insurance (No MI)

  • The minimum loan amount is $977,501 (Which is $1 above the max conforming loan limits in San Diego. Please keep in mind this is a LOAN amount and not SALES price.)

  • Eligible on homes, townhomes, condos, and multifamily units

  • Eligible on primary, secondary, and investment properties

  • Eligible on purchase, rate/term refinance, and cash out refinance

  • You can do 15, 20, 30, or 40 year terms (One of my most popular products now is a 40 year jumbo loan)

  • You can do fixed or adjustable over 5, 7, 10, 20 year periods

  • You can choose to do either interest only or principal and interest payments

  • Debt to Income (DTI) ratio's up to 50%

  • Credit scores as low as 600

→ The minimum loan amount in San Diego are as follows: 

  • Minimum loan amount for a 1 unit is $977,501

  • Minimum loan amount for a 2 unit is $1,251,401

  • Minimum loan amount for a 3 unit is $1,512,651

  • Minimum loan amount for a 4 unit is $1,879,850


Here's 5 of the most common questions I get (and how I answer them)... 

(Please keep in mind your personal situation might be different and these are used as examples only).

 Question #1: Are all the above qualifications written in stone?

No, they are not. With over 40 different wholesale lenders I can potentially use, each one has different qualifications. The above is used as examples only. Some might have lower/higher needed scores, others lower DTI's, etc. You would aplly with me, I get all your needed supporting documents, then I will see which lender is the best fit. 

 Question #2: Do you have anything other than a typical 30 year fixed Jumbo loan?

Yes, the standard is a 30 year fixed loan, although there are many variations. It can be just interest only, so you have lower payments (but dont pay down principal). You can have a 40 year loan, or a 40 year interest only. Or a 5, 7, 10 year adjustable rate loan, etc. There's now many variations to a Jumbo loan.

 Question #3: Is the 10.01% the minimum needed or do you have less? 

Generally speaking a 10.01% (or more) Jumbo loan is the minimum needed. There are not many wholesale lenders that will do a 5% down, Jumbo loan, of $2 million dollars. It CAN happen, if you have amazing credit + tons of extra $$$ sitting in the bank or stocks, or an amazing high paying job or business, etc. 

 Question #4: Are there pre-payment penalties?

Since Jumbo loans are called "non QM loans" some of these CAN have a prepayment penalty. Most of the standard Jumbos will not, some of the more creative ones can. Of course, we can always search for another lender, change the loan program, or "buy out" the prepayment penalty either in $$$ or with a tad higher rate. 

Question #5: Can I tap into stocks, or crypto, or equity on another house, etc for the down payment needed?

→ Yes, 100%. It's very common for Jumbo borrowers to have money tied up outside straight cash in the bank and they need to sell or move things around, thats no issues. As long as the money is yours, and easily traceble with a papertrail, its all good. 


Here's 3 secrets of this loan (or misconceptions) you might not be aware of... 

(Please keep in mind your personal situation might be different and these are used as examples only).

→ Secret #1: You can get a Jumbo loan even if you have had a short sale, foreclosure, or bankruptcy

I didn't post the needed timeframes on the above as it greatly varies lender to lender and also depends on how much you are putting down and credit score. But, money talks - so, the more you can put down the less of a factor things like a short sale are. 

→ Secret #2: This is a great option if you are a house flipper

A great portion of homes in San Diego will be expensive enough for a Jumbo loan. And, I have access to many great programs where if you put down over 20%, they need less supporting documents from you, and can close loans faster. The more you put down the less they can potentially need in terms of documents. Jumbo loans now can be a better option than hard money. 

→ Secret #3: You can close in 21 days or less

Gone are the days you need 45-60 days to close. Today, we can easily close within 21 days or less - assuming we can get all the needed documents from yourself. If you are on top of what we need - 3 weeks or less is the easy goal to attain. 


Here's the (potential) cash out of pocket you can expect... 

(Please note this can vary from borrower to borrower so this is just some helpful guidelines: Your own deposit, home inspections, and home appraisal may vary).

 Deposit - You should count on putting between 1% to 3% of your sales price - as your deposit into escrow - within 3 days of your offer being accepted. This is totally negotiable between the buyer (you) and the seller. I have helped clients with as little as $500 into escrow. But, keep in mind with the low inventory in San Diego, and lots of offers on each property, that's not a likely scenario. 

(Please keep in mind this is 100% refundable - if it's not used and refunded back at the close of escrow.)

 Home Inspection - You *should* use a licensed home inspector to check out the property to understand the kind of shape it's in. Do you HAVE to? No, just highly recommended. Depending on if it's a home or townhome/condo it will be somewhere around $250-$750 +/-. 

Please keep in mind - you can choose to inspection anything you want. The roof, septic, plumbing, electrical, pool, spa, foundation, etc. There are no limits to what a buyer can inspect, or whom to hire, to inspect on their behalf. 

 Home Appraisal - You will need to get a home appraisal on the property since you are getting financing. You pay this directly to the appraiser. This has nothing to do with the buyers agent (me), the listing agent, the seller, the lender, etc. This will be around $800 +/- to $1600 +/- depending on if the lender wants one appraisal or two, the sales price, the type of property, etc. 

 Down Payment - Within a few days of closing escrow you will be wiring in the rest of your needed down payment. Your down payment consists of whatever deposit was already wired into escrow + what's needed to close for rest of down payment, closing costs, and escrow impounds. 

→ My offer to you: If you use my services for the real estate and loan I will credit towards your closing costs at the close of escrow whatever you spent on your home inspection and appraisal as my way of saying "thank you" for utilizing my services. 


Basic documentation needed from you (or you and co borrower) to begin... 

(Please keep in mind these are the basic documents we will probably need. Depending on your personal situation we may need more or less and will advise accordingly). 

  • Copy of your drivers license (screen shot is fine)

  • Copy of your social security card (screen shot is fine)

  • Last 30 days paychecks (you should get these from your employer via email and PDF each time you are paid). 

  • Last 2 months bank statements - all pages (You just log into wherever you have a bank acount online and save the last 2 months via PDF.)

  • Last 2 years taxes and W2's - If you do not have them you can get them from the IRS website here

  • Latest statements if you have anything like: 401(k), retirement, stocks, bonds, mutual funds, etc

  • If you are self employed we will need last 2 years taxes and W2's (if applicable) as well as year to date profit and loss sign and dated (you can do this - doesn't need to be a CPA). 

  • We can potentially need more depending on this like: pay or collect child support, have been divorced, have had a short sale or foreclosure, have filed bankrupcty, have rental properties, etc. 


Here's your steps to begin right now...

  1. Fill out my online application at Scotts Loan App.com. If it's just you - then you fill it out just for yourself. If you are married - it's you and your spouse (regardless if they work or not, their income, their credit, etc.) If its you and a co borrower - then you both fill it out.

  2. Once complete I will be alerted, check everything over, send you out a list of needed supporting documents, and clarify anything if needed

  3. Once I get the needed supporting documents from you I will double check th application, your needed supporting documents, pull your credit report (it's currently $38 +/- and I pay for that), and get back to you with best scenarios.

  4. If a Jumbo Loan doesn't work for whatever reason we can see if there's other loan programs better suited for your needs. 


I would love to help assist you with your home purchase, home sale, or home loan - please feel free to give me a call, text, or use the form below. 

Your Jumbo Loan Insider,

Scott

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