Securing a jumbo: No small task
(Received from the California Association of Realtors)
Qualifying for a jumbo loan—those with loan amounts higher than the conventional conforming loan limit of $729,750 in high-cost areas—is more difficult than it was a few years ago.
While rates on jumbo mortgage historically have been higher than rates on conforming loans, jumbo loans still are available, but often come with stringent underwriting requirements. Prior to the credit freeze, borrowers of jumbo mortgages could qualify for loans with a 5 percent down payment, credit scores of 620 and enough money in the bank to cover two months of payments. Now, borrowers typically must have six months’ reserves, a 700 credit score, and a down payment of at least 20 percent.
Click here for the full New York Times Story.