One Step Up and Another Steps Up to fill the Gap

Private jumbo mortgage closings for refinance and increasingly purchase loans are on track to be at their best levels dating back to 2007, due to more and more lenders offering lower down-payment requirements and credit scores to attract more business,

In an about face from just 5 years ago is the news that numerous small lenders, like local banks and credit unions, say they will make portfolio loans to originate 5 to 10 percent down jumbo loans based on information from the Wall Street Journal.

Similar to the early 2000s, as homes appreciate, banks and lenders will loosen their lending guidelines by targeting under-performing segments. In this case, jumbo loans were extremely difficult to get in 2009. Now, jumbo loans are a fairly safe route to take to increase profits as borrowers in the luxury home arena are less likely to default vs. the conventional conforming borrower.

Jumbo loans are mortgages that begin at $417,001 and above; in some of the high cost areas in the country, jumbo loans are $625,501 or higher like coastal regions of California, Hawaii, and certain counties near the nation’s capital in Virginia, Maryland, and Washington.  For expert advice on which jumbo loan is right for you, get in touch with Bill


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