Just Approved in SF Gate for John Holmgren!
August 16th, 2015
Just Approved: Buyers succeed in high-priced market with lower down payment jumbo mortgage
Holmgren’s clients tried buying a home for several years but kept losing out to higher bidders and all-cash buyers. While their original plan had been to put 20 percent down, the down payment funds they had available were no longer enough to put that percentage down because of the escalating prices of the homes they wanted.
While financing options with less than 20 percent down have been available for jumbo loan amounts (over $625,500), the terms were often not advantageous and/or sellers were reluctant to accept offers in which the buyer was proposing a lower down payment because of property appraisal concerns, among others.
To mitigate these issues, Holmgren arranged a full underwriting approval prior to offer with one of his lending sources that allows buyers to put down 15 percent on loan amounts over $625,500. Moreover, this source waived mortgage insurance premiums, an important consideration for high value property buyers because of non-deductibility of mortgage premiums for buyers at that income level.
The buyer’s agent, Tracy Butler with Highland Partners in Piedmont, was successful in getting their offer accepted on an Oakland home. Their offer price, along with the fact that their financing was already approved, were major factors in their having the winning bid. Their escrow closed in 27 days.