Profile picture for Meg32

Is it possible to buy a million dollar house in santa clara county with 5% down payment

My husband and I qualify for a million dollar home based on income but we only have 5% saved for the down payment. Can we get a mortgage with just 5% down?
  • August 27 2014 - US
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Answers (9)

Profile picture for SteadyState
Wetdawgs is right - with 5% down sellers will pass up the offer in Santa Clara (and most cities in the Bay area).

Short of 5% down payment + 15% (hard money) I don't know how to finance such a deal. Although I did read a pamphlet at a home about paying 10% down; getting an equity line of credit on part of the 10% down; and then the difference being financed by the seller at 6%.

Despite your high joint income  the lenders are at enormous risk; a recession could hit or a company that employs you or your husband could  run short of cash (reduction in pay - very common in Silicon valley with start ups, etc.). Even if you get the home you are betting long on the price of the home without being able to cover or hedge your bet. Evaluate the situation carefully before proceeding.
  • August 28 2014
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Profile picture for sunnyview
"Eric, please share with all of us what you have in mind to be able to do this with just 5% down. "

Yes. Please do. Inquiring minds want to know...
  • August 28 2014
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Profile picture for wetdawgs
At the moment, houses are selling like hot cakes in Santa Clara county well over asking price.   Even if you can get a loan with 5% down, I suspect you'll lose the bidding war.
  • August 28 2014
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Profile picture for CA Direct Lending
Eric, please share with all of us what you have in mind to be able to do this with just 5% down. 
  • August 28 2014
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We have some ideas on how to make this work - I am happy to discuss in detail with you.

[deleted by Zillow moderator. please see our Good Neighbor Policy for posting guidelines]

Best,

Eric Nelson, III
[deleted by Zillow moderator. please see our Good Neighbor Policy for posting guidelines]
NMLS # 120412
BRE # 01258488
  • August 28 2014
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Unfortunately, you will run into a minumum of 10% down and can range to 20%.  The jumbo loan market is more restrictive on the borrower than non-jumbo.
  • August 28 2014
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Profile picture for The Mortgage Mark
No.   Jumbo loan will require a minimum of 10% and majority lenders will require 20%
  • August 28 2014
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Profile picture for JoshBarnettREIB
Probably not, but call your lender and ask them, they will know your finances the best. 
  • August 28 2014
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For most lenders you would need a 20% down payment for a jumbo loan. A jumbo loan is any loan amount over $625,500 in a high-cost area, which Santa Clara county is. I believe there are some lenders out there that will have minimal down payment loans for a jumbo loan, but you really have to seek them out. I know all of our Jumbo loan sources want 20% down payment. Someone may reply on this website with a solution, or you may ask a realtor that you are working with, many times they know lots of different creative financing solutions. But you may pay a premium for a loan that goes outside the mainstream.
  • August 28 2014
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