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Can I get a 5% down payment Jumbo Loan with 680 credit score?

A little over 6 years ago, my spouse refinanced and took me off the loan and off title of our home. A few months ago, we were foreclosed on. We'd tried to get a modification with the bank using my income but they gave us the run around and foreclosed on us while we were in the middle of a short sale. Long story short, I found a house I really like and I want to buy it. I make 6 figures and I have been told conventional is my only option. The home is 500k(Jumbo) and I have 40k available. Is there a Lender on the face of this earth who can do a 5% down loan in California? My middle score is about 680 by newbie from Newhall, California. Dec 3rd 2012 Reply


Carlo Sanchez (MortgageLendingPro)
#0 ranked lender in Utah - 1,163 contributions

Yeah, there are programs for you but the way the question is posed it will really need some clarification on the foreclosure circumstances. Conventional has Jumbo loan programs as well as FHA but FHA has loan amount limits by county so you need to check your county with this website https://entp.hud.gov/idapp/html/hicostlook.cfm Then contact a LOCAL broker to help you and not the National Lenders who are only order takers and most likely won't be able to organize your loan properly and the National Lenders will cost you a lot more money.

Dec 3rd 2012
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Samantha Taylor (samantha)
#365 ranked lender in California - 29 contributions

With a down payment of 5% and a credit score of 680, you won't be able to qualify for a Jumbo loan. A jumbo loan will require 20% or more money down. Moreover, with a 680 credit score, you won't be able to qualify for a normal conventional loan, forget getting a Jumbo loan. However, you can get a FHA loan with a 680 credit score and 5% down payment.

Dec 4th 2012
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ALLEN PERRY (aperry)
#369 ranked lender in California - 8 contributions

We can do an FHA jumbo loan for you with just 3.5% down. We can close your loan before year end. If you are truly interested in getting this loan done call me at 888-842-7296 and I will discuss the details with you.

Dec 4th 2012
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ALLEN PERRY (aperry)
#369 ranked lender in California - 8 contributions

We can do a FHA jumbo loan for you with just 3.5% down. We can close by the end of the year. If you are truly interested call me at 888-842-7296.

Dec 4th 2012
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

You have a potentially tough situation to finance and I agree that your first step should be to check the mortgage limits in the area you want to purchase. I disagree with some others on this site who say that "national lenders" are all simply order takers. This is misleading. While it is true that some, especially in national "call centers" are not as knowledgable and experienced handling a variety of situations, if they can quote you a rate they have to be licensed and complete required training and pass essentially the same test. (Generally you will not find those on a site like this one.) The vast majority of mortgage officers who work for larger direct/national lenders (all of the big banks and many of the larger national lenders are very experienced and quite well trained, as well as being held to a high standard by corporate policy. Most work primarily in their local markets but in many cases are able to handle loans in other states and do an excellent job. Generally you will find that most lenders will be offering very similar rates and fees - we all have to be competitive with each other. Brokers often have more flexibility and may be able and willing to be be quite competitive, other times not. Partly that is because a broker typically makes a lot more money per transaction than their counterpart at a larger bank or correspondent lender, and they may have discretion to adjust their fees to meet competition. Sometimes the larger lenders can do the same but with management approval. As a mortgage professional I don't believe in putting down the competition - which is what we all are. In general, you want to find an experienced loan officer with a good reputation and solid customer service with competitive rates who will work hard for you to get your transaction approved and closed with minimal problems.

Dec 4th 2012
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Mark Simon (mark.simon)
#10 ranked lender in Delaware - 83 contributions

In you were forclosed on " a few months ago" as you said the government guideline is a 3 year wait so the rest of the details don't matter till then unless the government changes their policy. Conventional or FHA can't be done now.

Dec 4th 2012
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Bill Ladewig (bill@yourfhaguru.com)
#359 ranked lender in California - 34 contributions

FHA may be the way to go Depending on county loan limits. As long as you were not on title or the loan on you spouse's home a 680 score will work all day long for FHA. Take advantage of over 40 years FHA experience. For no hassel information call me at 866.204.9733 or visit my site at http://www.yourfhaguru.com

Dec 4th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

California is a community property state, which means that if you apply for an FHA loan, the lender will run the credit of the Non-borrowing spouse.. if they see the foreclosure, which they will, your denied. If you try going conventional financing, there's another problem.. On the application for a mortgage, it's asks where you lived in the last 2 years.. And whether you owed or rented.. in your scenario, you will not be able to mark either, since your wife owned the home, and you where not paying her rent... this will prompt a question from the lender and you will have to write a "letter of explanation".. You cannot lie, and the lender will know you where just involved in a foreclosure, and your denied.. So for all these folks saying yes, I question it.. I have seen this scenario a hundred times, and rarely if ever does one get approved.. The lenders don't like folks who "take advantage" of the market.. And the fact that you make "6 figures" then why wouldn't you have continued to make the payments on the other home?? The underwriters who eventually make the decision of whether your approved or not, are not stupid, and they have seen every scenario a hundred times over.. They can read between the lines, and because they are human, some even take offence to a borrower just out of a foreclosure trying to purchase a home.. Believe me when I tell you, your scenario will not work.. You will have to wait 3 years from the date the home was taken out of your name before you can apply again.. And I will also say, that if your credit score was 780, you would not find a 5% down jumbo.. 10% minimum, more likely 20%... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Dec 4th 2012
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Andrew Alfonso (CashCow)
#43 ranked lender in Florida - 271 contributions

With a down payment of 5% and a credit score of 680, you won't be able to qualify for a Jumbo loan. A jumbo loan will require 20% or more money down. Moreover, with a 680 credit score, you won't be able to qualify for a normal conventional loan, forget getting a Jumbo loan. However, you can get a FHA loan with a 680 credit score and 5% down payment. Andrew Alfonso 800 813 3291

Dec 4th 2012
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