The Jumbo market for loans over $625,500 (over $417,000 in some cases) has been “coming back” for the last couple years. Jumbo loans were never fully able to compete to with conventional loans on a rate basis until recently. We now have Jumbo sources that almost match high balance ($417,000 to $625,500) conventional loan rates.

There are also numerous other non-traditional mortgage products trickling into the market (bank statements for income, no foreclosure/short sale seasoning, etc.). Many have relatively high rates but they are far better than “hard money” alternatives.

This is all very good news b/c it definitely means that Fannie and Freddie (gov’t sponsored mortgages) are not the only game in town. This hopefully will result in a more rational mortgage lending environment that is driven by logic instead of fear of regulatory repercussions.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646

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