Jumbo Loan....?

Question

I have read some of the postings about Jumbo Loans. What credit score and income is needed for a couple with 5% down and looking to buy a 620K home in California RIGHT NOW? We have a great opportunity to do so. I have heard that your age, race and location (CA vs. NV for example), makes a difference. Have the big companies shut out Jumbos indefinitely or just for a few months? Any experts out there that can answer and/or help?

Answer 1

ok race has nothing to do with it your 5% can be done its just you have to go to a lender that knows how to do it firstof all you dont want a 95% loan anyway you just need to split the loan and a proper split will avoid all the issueswithit being a jumbo loan.

Answer 2

Jumbos are tough right now. Most lenders are in limbo for the next few weeks/months trying to figure out what to do. Race and age have nothing to do with it, location may. Conforming seems to be the way they are all going 417K max loan amount no prepay, full doc. You can do 2 loans maybe an 80/15 with good credit, but as far as 1 jumbo for 95% you probably are not going to find that. Wait a bit and let the market get it's bearing and they should come back.

Answer 3

Race is a factor? Where did you hear that BS? If it's a factor at all, it's not the way you think. There's so much bad press and govt pressure surrounding banks 'not making loans in bad neighborhoods' that banks actually make more loans in bad neighborhoods than credit/income/ratios would dictate.

In other words, as usual, it is the white man that is being discriminated against.

When it comes to jumbos, of course, these don't usually apply in poor areas, so no factor for you.

No one can really answer this for you because loan program guidelines are changing day to day. My friend works for a lender and each day for the past several weeks she gets an email from headquarters outlining the latest in what's allowed, and what isn't, for specific loans.

So you need to get with a mortgage broker and make sure he is checking all the options - not just one that seems to 'work' - and rechecking the options daily until you close.

Answer 4

Jumbos ( loans over $417K ) are being avoided by investors .
No one can tell the future , for 'how long' but for a $620K I think you're going to need 20% down and over a 720 FICO .
Also , the ones being issued seem to be going for 7.5 % and up .

http://www.memphisdailynews.com/Editorial/StoryLead.aspx?id=98625

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Answer 5

I'm sure that you'll find someone to do a jumbo loan. However, you will probably need 20% down. Age, race and location should make no difference (discrimination, no-no).

Answer 6

Speaking from a Mostly Dallas perspective-We are seeing a boom in the Jumbo market right now and expect it to continue through the end of the year. Homes in the over 400K price range are going strong.

Answer 7

if your in such a rush to buy
then you shouldn't be buying
it should be a well though out process
and for that price tag you have a next to impossible time getting a loan with only 5% down
many are leery of lending with such high amount on a house that very might depreciate, yes in even in sunny California where some of the steepest declines in home values are happening

Answer 8

it incredibly is going to a great deal rely on your credit, and the quantity of funds you have tucked away in low value fees. lenders are working scared top now via fact of all of the foreclosure, so if may be complicated. And in case you do get approved, you will have some crappy fees - which you would be waiting to refinance as quickly as the industry settles out interior the subsequent couple of years. be careful - California homestead fees are the countless maximum inflated interior the country. it is going to take a at an analogous time as formerly they end dropping and settle out. in case you purchase your assets at too intense a cost, probability is you will quickly be the different way up on the fee, and can be in a good spot until eventually homestead values commence coming decrease back up.

Answer 9

With the looming housing issues, why don't you wait and see if prices in California come back down somewhere close to reality?

I could get a 7,000 square foot high-end house on a half acre in a gated community for that price in Houston!

Answer 10

You need a standard downpayment, 5% doesn't cut it.

Age race and location mean nothing and are not part of the equation.

If you have no other debts you can do OK on about 180k a year income if you have decent credit.