Where readers ask and we (the community) try to answer.
Can you have someone, maybe “the banker”, speak to the loan environment and requirements for loans on homes over 1 million dollars? Thanks.
Banker? You reading? You can either send us your answer via email, or post in the comments and we’ll cut/paste to the front.
[Update: It took him all day ;-), but “the banker” chimed in…]
Jumbos are certainly still available and with a watchful eye and the right advice, the pricing is not absurd at certain institutions. The number that seems to be consistent with Jumbo Financing is a 70% Loan To Value, perhaps some banks may max out at 75%, but most counties are considered to be declining market and stuck at 70%. In terms of product types, these are few, 30 year fixed and a 5 year Arm may be the only two choices left. Within the fixed and adjustable choice, there may be a few interest only options to choose from.
Standard credit requirements are at least 720, Full income verification, and strong asset position, at least 6 months to 12 months of reserves.
Jumbo rates have been all over the board, but I have recently seen mid 5’s, no points, standard Bank fees. But, this is a Bank Loan. . .I am not certain Mortgage Brokers have many options on the Jumbo side of the game as many of there vendors have ceased making this type of loan or have shut down completely.
As we continue to see falling prices, this will be one of the most “cautiously monitored” loans, but as updates occur. . .I will make sure to post.
Thanks!