Jumbo Home Mortgage

[pianoman9701]

Retiring and ready to buy the house you've always wanted? Loan limits for conventional loans have increased this year to $647,200.00 statewide. In King, Pierce, and Snohomish counties, the limit is $891,250.00 now. If you need to borrow more than that, your loan is considered Jumbo. I have 8-10 lenders who have jumbo products to choose from, some up to $4million loan amount.

[bornhunter]

John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?

[Igor]

John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?

Great question!  That's where I am right now.......needing a short-term loan.

[pianoman9701]

John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?

I misread your question originally. As long as your house isn't listed for sale currently, you can contact Banner Bank and get a HELOC for the full value of your home, use that to buy the new home, and pay it off with the sale of your house. If you take out a mortgage and then pay that off in under 6-12 months, depending on the lender, the mortgage broker has to pay the lender back his commission.

[fly-by]

John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?

I misread your question originally. As long as your house isn't listed for sale currently, you can contact Banner Bank and get a HELOC for the full value of your home, use that to buy the new home, and pay it off with the sale of your house. If you take out a mortgage and then pay that off in under 6-12 months, depending on the lender, the mortgage broker has to pay the lender back his commission.

Does this assume your have no loan on your primary residence?  I assume Banner has a 100 CLTV limit.

[pianoman9701]

John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?

I misread your question originally. As long as your house isn't listed for sale currently, you can contact Banner Bank and get a HELOC for the full value of your home, use that to buy the new home, and pay it off with the sale of your house. If you take out a mortgage and then pay that off in under 6-12 months, depending on the lender, the mortgage broker has to pay the lender back his commission.

Does this assume your have no loan on your primary residence?  I assume Banner has a 100 CLTV limit.

I was assuming that. Thanks for pointing that out. If you have a balance on your current mortgage, Banner will lend you up to 80%LTV, combined 1st and HELOC.

[pianoman9701]

Full disclosure, I have no business connection with Banner other than having accounts with them. Great bank.

[jackelope]

John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?

I misread your question originally. As long as your house isn't listed for sale currently, you can contact Banner Bank and get a HELOC for the full value of your home, use that to buy the new home, and pay it off with the sale of your house. If you take out a mortgage and then pay that off in under 6-12 months, depending on the lender, the mortgage broker has to pay the lender back his commission.

Does this assume your have no loan on your primary residence?  I assume Banner has a 100 CLTV limit.

I was assuming that. Thanks for pointing that out. If you have a balance on your current mortgage, Banner will lend you up to 80%LTV, combined 1st and HELOC.

Would this be different than a bridge loan?
Maybe a better question is how is this different than a bridge loan?

[pianoman9701]

John how does it work if you only need a loan for a short time? Say I find a place I want to buy but sellers are not interested in a contingency offer. So I get pre approved to be able to compete with other buyers but want to pay cash once my home sells? Is there provisions for something like this?

I misread your question originally. As long as your house isn't listed for sale currently, you can contact Banner Bank and get a HELOC for the full value of your home, use that to buy the new home, and pay it off with the sale of your house. If you take out a mortgage and then pay that off in under 6-12 months, depending on the lender, the mortgage broker has to pay the lender back his commission.

Does this assume your have no loan on your primary residence?  I assume Banner has a 100 CLTV limit.

I was assuming that. Thanks for pointing that out. If you have a balance on your current mortgage, Banner will lend you up to 80%LTV, combined 1st and HELOC.

Would this be different than a bridge loan?
Maybe a better question is how is this different than a bridge loan?

In this instance, the HELOC is being used as a bridge loan. A bridge loan normally has a time limit of six months to a year, whereas a HELOC does not. HELOC rates could be as much as 5% lower than a bridge (But over such a short term, the interest rate means little). Closing costs would likely also be lower on a HELOC

[jackelope]

10-4. Makes sense. Thanks.