Qualifying for a "jumbo" mortgage loan can be a bit of a pain, we sometimes joke that the only people who can "qualify" for a typical big bank jumbo loan are people that don't need one because they are cash buyers. The guidelines can be quite absurd - 36 months of reserves and a 720 minimum FICO score?! 20% down or automatic decline?! That's absurd!
One of the wholesale volume-discounted lenders we work with is going up to loan amounts of $726k in the entire state of California as a Fannie loan with very limited overlays, even if that is over the Fannie Mae county loan limit! Below is a list of counties wherein this is unique. First, the overlays:
- 90% LTV, that works out to a purchase price of about $800k with the minimum down payment.
- 43% DTI
- No mortgage lates in the last 12 months, "ok" to "good" credit only, "excellent" not required (unlike "jumbo").
- Primary residences only, for now.
- Rental income "counts" when it's been on tax returns for a couple years and a traditional 12 month lease can be provided (sorry, AirBnB people), for now.
- Can use departing residence rental income, with a few caveats.
- Purchase or refinance.
Those are the big ones. Contrast with typical "jumbo" loan guidelines, which are about 200 pages long (200 pages of reasons for an underwriter to say "no" to your or your client's loan). The full "statewide high balance" guidelines/overlays are 4 pages long. Realtors, this is the solution for your clients stuck with a county loan limit of $484k, or any other limit below $726k, because of those pesky big bank "jumbo" guidelines. Lock in a time to chat, right now, on a date and at a time that works for you. More at our website.
These are the California counties wherein this is a fairly unique offering, counties with loan limits for 2019 below $726k:
|San Luis Obispo|
Counties wherein the loan limit for a SFR is $726k, this isn't unique, but we've of course got our normal offering of great rates, low fees, fast service, and top notch communication.
Once there's sufficient data, the lender will be re-evaluating the "for now" clauses above, as of right now sufficient data does not exist.
- Like running numbers on your cell phone? Great, here you go!
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