Jumbo Loans

They’re baaaaaack!  Jumbo loans to $2 million (and in some case,even more) is one of the first truly bright spots in the real estate world since the melt down in 2008 began.  When the secondary market imploded,Jumbo loans disappeared.  Following that,the federal government (through Fannie,Freddie and FHA) stepped in and became the only Jumbo lender in town;and they capped their loan limits –by county –to well below $1 million.

But recently,the fed lowered their loan limits and effectively opened the Jumbo market back up to the private sector…and the secondary market came roaring back!  In San Diego county it was nearly impossible to get a loan above the High Cost Loan Limits set by the fed of $697,500,but now,with the secondary market back,loans are available to $2 million and more.

One bit of warning:these are not fed loans;they are being underwritten by actual lenders and so you’ll find actual guidelines that limit exposure:e.g. you have to have very good credit scores,you have to put at least 25% down (or have 25% equity in the case of a refinance) and so on.  But these are the kinds of parameters loan should have anyway at this level,don’t you think?

The rates are surprising low –only about one half to three quarters of a point above regular,conforming,conventional loans!  To learn more or to ask specific questions,don’t hesitate to contact us.  My loan originators are very knowledgeable and eager to answer any questions you might have.