It wasn’t but a few months ago that Jumbo loans were a naughty word on the secondary market. It didn’t matter what type of equity or credit you had there was just not an appetite for investors to purchase these loans. We saw some million and multimillion dollar homes lose half their appraised value in just a few months. Jumbo loans are not sold in the same pool that conventional mortgages are sold in and investors were not going to take a chance on a swiftly depreciating asset.
Now that the real estate market has stabilized somewhat investors are now interested in purchasing these loans. I just received these guidelines and was pleasantly surprised by how reasonable they really are.
Program features include:
· 5/1 & 10/1 LIBOR ARM options (5/2/5 caps); 2.25% margin
· Loan amounts from $417,001 up to $2,000,000
· Manually underwritten
· Maximum 40% debt-to-income
· All assets listed on the 1003 must be verified
· LTV to 80% for max loan of $1,000,000
· LTV to 65% for Cashout for a max loan of $1,000,000
· Minimum Credit score of 700
· Third Party Contributions from 6% – 9% depending on LTV (WOW!)
* Please ask if you want guidelines for loans from $1,000,001 to $2,000,000