I recently attended a meeting with 30 experienced Realtors who were bemoaning the lack of Jumbo financing and the negative impact on real estate sales over $1 million. Soon thereafter I went on Broker Tour and heard much of the same conversation.
Since I have not run into the same problem and wondered why this was such a common belief, I started asking questions. I received two primary answers: 1) This is consistently reported in the press and 2) is proven by the fact that their preferred loan officer now offers only one and maybe two Jumbo programs compared to the huge array they previously offered.
Since I used to be a mortgage lender and maintain my lending contacts, I decided to devote a day to "financing homework" and give my associates a gift of the truth: the Press is WRONG and plenty of Jumbo financing is available.
Every lender has a specific level of risk they are willing to take and evaluate that risk differently. In order to minimize their risk, lenders have pared down their jumbo products to the bare minimum. Each lender appears to have chosen different products which they consider the lowest risk.
At the end of my "financing homework" research day, I had two full pages of Jumbo loans listed by company, loan officer, product, downpayment, credit score and interest rate. Every single product previously available to our clients is still available, just not with a single lender.
Survival Strategy - expand your network of qualified, professional Loan Officers in order to get the full array of financing options available.
Wendy Cutrufelli
Broker Associate
925.917.1135
The positions on this site are my own and don't necessarily represent Alain Pinel Realtors' positions, strategies or opinions.
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Wendy, wanted you to know that I think your post is so important that I reblogged it!
Janice, HUGE compliment! Thank you for reblogging the post.
I agree that there are Jumbo Loan Products available, however most htat I have seen do require around 30& down in our market in Az. Are you finding products that have a lower downpayment amount?
Anne and Eddie, we just increased our LTV to 80% up to $1.5M. The pricing is very nice!!!
Not sure why my pic and company information didn't show up! I setup my profile and thought everything was set. I am new to ActiveRain, so please forgive me (it's my first response!!) I work for Countrywide Home Loans. aaron_langes@countrywide.com
Hey Wendy - I'm so glad you brought this up. The media has great influence on how people think and like you stated - listening to them.......you would swear Jumbo Loans disappeared 18 months ago. Anyway, keep those great post coming.
Cheers
Hey Wendy--In the Boston, Massachusetts market jumbo loans are available, generally through local thrifts. I know that Wainwright Bank, a lender I frequently refer to my Jumbo Buyers, has a large array of products for expensive homes and condos. Their underwriting standards are high, but for the right Buyer, they are almost always the answer. Keep beating the drum!!! The thing we need most is optimism and you post conveyed that spirit.
Hi all, Sorry for the delay in responding. I was out to dinner with my husband and promised NOT to respond while we were eating. I will give you the lender information that is generally available while omitting those that are CA specific.
Bank of America (although Countrywide is also now officially part of the B of A family, I spoke to B of A directly) offers 20% down up to a loan of $1.5 million, 30% down up to $3 million. Don't expect a fast close.
Bank of the West offers 20% down up to $1.99 million and still have loan options for jumbo borrowers with a credit score in the 680 - 700 range (hard to find). They also has a 40 year fixed rate mortgage. They are top notch in N. California which, I belive, is because the Regional honcho used to be a top-producing loan officer in a real estate office (in other words, she understands our world and trains her loan officers accordingly).
Union Bank of California has a great product available through select mortgage brokers which is 20% down up to $2 million on a 15 year interest-only that then rolls into a 25 year amortization (40 years total).
MetLife Home Loans has a great range of products and great rates. They require 30% down but have more realistic credit score requirement than many.
Thanks for the input Wendy. Just today I was told jumbo loans were no longer available. Your post is most timely.
Hi Richard,
The more accurate statement is that the specific lender no longer offers Jumbo financing. If you can't find it at home, many of our California bank branches are approved to lend in Hawaii. Do an end run. Smile.
Thanks for all the great bank specific info. Good to know that ALL past products are still available out therewith some lender if you look for it.