Our Jumbo Loan is Coming Back with a Vengeance…
Searching whether you qualify for jumbo loan program in California? Well, here you can read more about jumbo loan in California.
Depending where in California you live, a Jumbo Loan can be loan amounts over $417,000 or in high cost areas $625,500. These limits are set by Fannie Mae & Freddie Mac. These two behemoths purchase loans from Lenders in the secondary market, freeing lenders to make new mortgages. Without their existence there would be fewer dollars available for home mortgages especially Jumbo Loans.
When it comes to jumbo loan in California, a large number of lenders are re-entering the Jumbo Loan market with varying products. With the marker regaining confidence and tighter guidelines, the secondary market and lender portfolios are constantly introducing exciting products.
There are no zero down Jumbo Loans.
To put it in numbers, demand for jumbo loan program California demand is high and as long as borrowers can meet the new higher down payments requirements, have good credit, and prove their ability to make the mortgage payment the coffers are wide open.
A big demand for Jumbo Loan financing was meet by Fannie Mae and Freddie Mac when they temporarily raised their loan limit (in high cost areas) to $729,750. This move helped lenders free up funding for the area’s (which we have a lot of) needing Jumbo Loan funds in excess of that amount.
As an example of how good the Jumbo Loan market is today June 20, 2014. On a loan of $2,000,000 the rate is virtually the same as a Fannie Mae or Freddie Mac conforming loan which is being offered at 4.125% with zero points. In all honesty there is one major difference…The down payment. On the conforming loan the down payment would be 3 to 5% on the Jumbo Loan 20% would be required.
The ARM Jumbo loan is an outstanding value today (6/20/2014) with an initial rate on a 5/1 of 2.875% with zero points. Of course on all of these examples the APR will be slightly higher – these figures do not represent an offering.
There is no shortage of funds for Jumbo Loan program!
As a result the crises we went through underwriting guidelines have changed. As you would guess the minimum credit score is higher and for the best Jumbo Loan programs you’ll have to supply full document. As a result of Lenders regaining confidence in the market the Lite Doc program has reappeared. This loan requires a larger down payment which is a way to mitigate the risk by the Lender.
It will be interesting to see where we’ll be in 12 months as lenders regain confidence in the quality of their portfolios. Anything is possible in our Jumbo Loan market.
Are you searching for the best jumbo loan California? We are at a call away to educate you about jumbo loan in California. Our mortgage professionals are better informed and friendly in behavior. You can rely on us for any information regarding jumbo loan program California.
Jumbo Loans $5,000,001 to $10,000,000 require a custom quote.
In Today’s Market…When it comes to Rate and Fees there is very little difference between the Jumbo Loan & Conforming Loan.
Call us today at 424 225 2167 for help. One of our mortgage professionals will help you get the best possible Jumbo Loan solution for your situation. We’ll be with you every step of the process and not hand you off to someone else.