Lenders are back to offering jumbo home loans, which involve loan amounts over the conforming limit of $548,250.
This is great news for many homeowners and home buyers. The down payment for a jumbo is lower than what you would traditionally need. Loan-to-value ratios go up to 89.99 percent with no mortgage insurance required.
Prime jumbo loans disappeared when the COVID lockdown started but are now back and worth considering.
These are available for primary, second and investment homes, and they can be used for purchase, rate/term and cash-out refinances. Thirty-year, fixed-rate terms go up to $2,000,000 loan amount.
The minimum credit score is 680 and the maximum debt-to-income ratio is 45 percent. Only one appraisal is needed for loans up to $1,500,000; two appraisals are required for higher loan amounts. These loans are readily available at attractive pricing.
A one-unit primary or second home can be purchased with a 680 score and 10.01 percent down. Investment properties can be purchased with 20 percent down and a 680 score.
A one-unit rate/term refinance on a primary home can be done with a 680 score and 10.01 percent equity. A second home requires 20 percent equity and a 680 score. Investment properties can be refinanced with 25 percent equity and a 700 credit score.
Cash-out refinances are quite generous with loan-to-value ratios. Primary homes are 89.99 percent LTV and 740 credit score. Second homes are at 75 percent LTV and a 700 score. Investment properties are at 75 percent LTV and a 720 credit score.