Luxury Home Loans are mortgage loans that
exceed the “Conforming” loan limits set Federal Housing
Finance Agency (FHFA) for Fannie Mae and Freddie Mac. This means
that Luxury Home Loans are not eligible to be purchased guaranteed
or securitized by Fannie or Freddie.
Currently the conforming loan limit is $417,000. Currently due
to housing market conditions there are some “high cost” areas
that the temporary loan limits exceed the conforming amount but
this is a temporary situation. For the most part – most
of WA and OR are at the $417,000 loan limit for conforming loans.
What this means for the Jumbo market is that these loans are
considered higher risk and consequently priced accordingly. The
equity investment requirements for Luxury Home Loans are also stricter
than conforming loans. Typically down payments start at 10% and
as the loan amount/purchase price goes up so does the equity
investment.
Luxury Home Loans are underwritten manually and can also require 2
appraisals for higher loan amounts to substantiate the value
of the home.
Also there are different options available for these loans than
the standard Fixed Rate or Adjustable Rate Mortgage. Call me
to find out what is available in the current market.
The jumbo loan is a complicated product and if not handled by
an experienced mortgage banker, it can lead to many problems.
Not just any loan originator can and should write these loans,
Make sure you look for a professional that has been in the industry
for many years and that handles these loans on a regular basis – not
just once or twice a year.
I have been writing Luxury Home Loans for many years and have had
them myself, so I know firsthand the requirements that must be
met.
Experience extraordinary...
Call Theresa Springer today at 360-210-7984 to
see the difference that working with an experienced home
loan professional can make for you. |
