Thursday, May 13, 2010

Jumbo Loans Are Coming Back

I know it's been awhile since my last post. It was a very busy first quarter and frankly there is no excuse. However, we always like good news so I thought I'd add something new.

There has been so much talk about how difficult Jumbo loans are to secure...that is any loan amount over $417,000.

Wells Fargo has been doing them. It wasn't that long ago where all you heard was "jumbo loans are impossible", well jumbo lending is back. According to Ken Dickerson with RWF Mortgage, several positive changes have occurred that make jumbo loans attractive again and should help provide more financing options for some and bring others back into the market.

The rates have crept down. As of today the 30 year fixed rate is 5.5%. Down payments are also beginning to relax with 20% down required for single family and town homes and 25% down for condo's. Additionally, credit score requirement have relaxed to 700 or better. Most importantly, closing liquidity required has also reduced to 10% of the loan amount down from as high as 40% not too long ago. This is good on loans up to $1,500,000.

If you have any questions or this, please contact Ken Dickerson at RWF Mortgage.