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 February 24, 2009

Jumbo Loans are Available, Yet Tougher to Obtain
Unlike two years ago, jumbo loans are currently not that easy to obtain. To qualify, lenders state that jumbo loans are available if borrowers possess the right level of income, sufficient down payment, and high enough credit score.
Potential borrowers who are shopping for a jumbo loan should look to smaller, local banks as they tend to keep their loans on the books as opposed to selling them which is a common practice of larger banks.

Guy Cecala, publisher of Inside Mortgage Finance states that what has been seen of late is the demise of national lenders.

Ephraim Schwartz, mortgage broker with the O'Dette Mortgage Group advices not to generalize too much when considering a lender for a jumbo loan stating that borrowers should look into both small and medium-sized national lending institutions.

Here are two examples of what is typically available:

Alliant Credit Union in Chicago and California Coast Credit Union are two lending institutions offering 30-year fixed rate jumbo loans which start at 6.25%.

Operating in 24 states, U.S. Bank, which is part of U.S. Bancorp, (USB) has been offering a one-yr jumbo nonconforming ARM for under 4% for loan amounts up $900,000.

Keep in mind that most jumbo loans will require at least a 20-25% down payment and could also require the payment of at least one point.