The Return of Jumbo Loans

San Diego Jumbo Loans

Did you know that Jumbo Loans are returning to the mortgage market place?

Before the credit crunch of 2008 Jumbo Loans were easily accessible and in many cases you could even get them with little to no income documentation.  Since then, they have been much harder to obtain with few lenders offering them, much larger down payments required, and strict underwriting guidelines.

Higher priced homes in San Diego County and California as a whole became more difficult to purchase and in many cases stagnated on the market.  But as the market has started to improve and banks are getting over their shell shock, Jumbo Loans have started to reappear with manageable guidelines.

What is a Jumbo Loan?

In San Diego County a borrower can obtain a loan up to $697,500 through a High Balance loan program offered by Fannie Mae or Freddie Mac.  A Jumbo Loan would be used when a loan amount above $697,500 is needed.  These loans are not purchased by Fannie Mae or Freddie Mac and with some lenders can go as high as $5 million.  Fixed rate and ARMs are available with most lenders still leaning more towards the ARMs which are offered at 5, 7, and 10 year fixed periods, but amortized over 30 years (5/1, 7/1, 10/1),

Jumbo Loan Options

We are starting to see lenders offer a number of different Jumbo Loan Programs that meet the borrower’s needs.  In my next few posts I am going to be discussing the return of the 30 Year Fixed Rate Jumbo Loan up to $2 Million, a pledged asset program which allows Jumbo Loans up to 90% LTV without mortgage insurance, an asset depletion program which allows assets to be counted as income to qualify, and Jumbo Loans for foreign nationals. 

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