Living in a high-end home in San Juan Capistrano can start at a $1,000,000 price tag and go up from there.
So was created the jumbo home loan. Our good ol' pals, Fannie Mae and Freddie Mac, are nowhere to be found at this level (above $625,000 on Single Family Homes in Orange County). Jumbo lenders take their place here to step in, each having their own criteria for how much, and at what interest rate to lend.
There is good news... As the housing market distances itself further from the financial debacle of five years ago, jumbo lenders have loosened their guidelines on their credit decisions. Down payment requirements have been slashed, credit reports no longer have to be immaculate, and each dollar of income need not endure the nth degree. Jumbo loans are being funded, and there's this...
Since interest rates are up about 1% from their all time lows of late 2012, the refinance boom is just about up. The market change of recent actually benefits the jumbo borrower in a few ways:
1) Banks who used to lend only on those Fannie/Freddie scenarios, now realizing a major decline in new refinance applications, have opened up their books to capture jumbo business. More lenders in the jumbo market means more sets of guidelines that a jumbo loan can fall into.
2) With less loans coming through their doors, banks are quicker to fund the loans they have. Think of the underwriter showing up to work, looking at a fraction of the loans that they used to mull over. Morning coffee is hardly needed. Nowadays, credit decisions are turning out same-day. Loan docs are in the notary's hands without every bank "VP" perusing every comma. Once signed loan docs are back to the lender, the Funder no longer has the laundry list of "missing documents" before hitting the button to wire funds to escrow.
3) Oh, and this... Loan features are making a gallant return. Guess who's back...Dare I say it?...Interest Only is back! Yep.
We do jumbo, we do interest only, and what's more, we have access to the guidelines and credit decision power of many jumbo lenders competing to fund loans with high-quality service (thank goodness there is flight-to-service in lending) and competitive interest rates. If you are looking to finance or refinance your home, you are invited to contact us athttp://www.HomeBenefit.com
(949) 415-6263.
