Jumbo Mortgage Lending in High-Cost Areas
Agency Jumbo Mortgage Loans
The US Government via the Economic Stimulus Act of 2008, in an effort to aid mortgage lenders in servicing more borrowers living in the high-cost areas are now authorized to offer Jumbo Agency Mortgages up to $636,150.
The Jumbo Agency Loan or the FHA Jumbo Agency Mortgage requirements have been expanded to a maximum loan of up to $636,150 for Agency Loans or up to $636,150 for FHA Jumbo Loans. The maximum loan amount is defined by the county on the HUD Website at https://entp.hud.gov/idapp/html/hicostlook.cfm.
All of the programs available are Fully Documented. Both 30 Year and 15 Year Fully Amortizing Loans are available as well as other mortgage programs.
Under the Dodd Frank Act, CFPB has instituted the Qualified Mortgage. Under QM some DTIs will be capped at 43% DTI. Fannie Mae, Freddie Mac, FHA VA and USDA have a 7 year exemption to this requirement.
Benefits to Borrower
- Jumbo Loans will now have Interest Rates similar to or competitive with Conforming Loans to $424,100
- Wide range of Jumbo-conforming mortgage options
- Established Jumbo Mortgage Rate environment.
- Stable mortgage rates in many High Cost real estate markets
- Conforming Jumbo Loans now have Low down payment requirements (up to 90% LTV on Agency or up to 96.5% LTV on FHA)
- FHA Conforming Jumbo Loans are available with 3.5% down payment
- Stabilize the higher cost mortgage market.