Jumbo loan for purchase & additions is it possible?

[Jessica Chen]

We have been looking for a bigger house than our current home and that should be at least 2750+ sqft. Most of the properties we came a crossed were either over our budgets or too small. Our budget is 1.4M with 400k cash. Houses for the size we want in the area cost 1.5M-1.8M. But houses that is smaller size and need renovation is probably 1-1.2M (1600-1800 sqft).

I saw some properties that with decent size lot, 1880 sqft for asking price at below 1.1M. if we add 1000 sqft to the house (budget is after additions and renovation the total price 1.4M with 400k cash) and it should worth 1.5M-1.7M So up front we need to come up with $520k cash for 20% down of 1.1M + 300k renovation. And I’m not even including rental that we need to pay with mortgage during the construction period which can drag to 10 months and maybe some unexpected expenses.

I wonder if there such a loan that fits our need?

[Chris Mason]

The closest you will come to accomplishing your end goals (I'm focusing on that and ignoring the particular proposed method to get there... the end goal matters, not the method) will be some of the 95% LTV jumbo stuff that is out there.

Use the money you kept in your pocket by only putting 5% down to accomplish the reno.

Refinance afterwards to lower the rate back down.