What is a Jumbo Loan?

A jumbo loan is a mortgage outside the loan limits set by Fannie Mae and Freddie Mac. “For 2019, the conforming loan ceiling in most areas for a single-family home will be $484,350. That’s an increase of $31,250 from the 2018 baseline limit of $453,100. Any loan amount that exceeds the limit is considered a jumbo loan.” There are exceptions as there are higher ceilings for areas with higher home prices. Every year, the FHA increases conforming loan limits. The mortgages that exceed those limits are Jumbo Loans, which aren’t backed by the federal government.

 

Today, we are going to look at a few important facts you should know about Jumbo Loans.

  • They are processed and closed in the same Operation Centers closing conventional loans and will be required to complete the compliance review for Jumbo Loans. (please note that there are some exceptions to this and nothing you currently have is changing if this is not the case for you)
  • Underwriting is completed within the Credit Policy Jumbo Underwriting Team
  • Transferred appraisals and Rapid Rescores are NOT allowed by any of our Jumbo Investors
  • All personal and corporate tax returns must be signed prior to the loan being cleared to close
  • All Transcripts must be obtained prior to the loan being cleared to close
  • Regardless of the locked status, loans needing to be switched from one Jumbo Program to another must be approved by the SVP of Secondary Marketing prior to the change being made

We offer a very wide range of delegated and non-delegated Jumbo products with different investors including Fixed and ARM’s. For borrower’s, it is essential to know if they meet the requirements for a Jumbo Loan as soon as possible. Here are the Borrower’s requirements:

  • Owner occupied 1-2 units, Purch, R/T & C/O Second Home, Purchase & R/T. Investment property not permitted on any program
  • Non occupant co-borrowers are not permitted under 3000-11 & 3000-07 program. May be permitted under 3000-27 for owner occupied, see guidelines for details and requirements.
  • 3000-11 ONLY: Non-Permanent Resident Aliens permitted with 2 years employment and credit history in US, and have authorization to work & have a valid SSN. SFR detached primary residence only. 75% LTV/CLTV maximum
  • Maximum 4 owned properties. Max 2 properties for 3090-11 Reserve requirements apply to all financed properties.

See if your borrowers qualify for a Jumbo loan. Let these Bigger and Better loans allow your borrowers to dream bigger and accomplish more.

 

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