Tag Archive for: jumbo

Commercial Banks Pulling Out Of Jumbo Market; Why & What It Means

Commercial banks are pulling out of the jumbo market rather suddenly – after dominating it for the last year or so. The question is why and what does it mean? When Service Matters We have always been able to crush every commercial bank when it comes to service, as we are far more responsive, we […]Read More

Cash Reserves After Closing – How Important Are They? Inflation…Or Not

Four of our borrowers starved to death shortly after moving into their homes last year. This is because our poor borrowers had no money to buy food because most loan programs do not require any cash reserves in a buyer’s bank account after their loan closes. In other words, most loan programs allow borrowers to […]Read More

Eliminating PMI – With Appreciation, Paying Down Loan, or Refinancing!

A client who bought in 2019 emailed me this week, asking how to get out of PMI. Because appreciation has been so massive over the last few years, there is no reason anyone should have kept their PMI in place for more than two years.Read More

What Is A Jumbo Loan In Texas?

So, what is a jumbo loan in Texas in 2022? A jumbo loan is a conventional (not government-insured) mortgage loan that exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that buy and securitize mortgage loans. Jumbo loans usually have stricter underwriting guidelines because they are not […]Read More

Jumbo Loan Rates 3/4% LOWER In California and Texas

The Jumbo vs. Conforming Difference Widens! As of the date of this blog, December 13th, 2021, the rate for a $1 million jumbo loan at a 1/2 point cost is 2.5%. The rate, however, for an $800,000 “high balance conforming loan” at 1/2 point cost is 3.25% (3/4% HIGHER than the jumbo rate). These quotes are for […]Read More

How Monkeys Close Loans in 10 Days; Purchases? Not So Much…

30-MINUTE LOANS Closing a conforming (Fannie/Freddie) refinance for a W2’d employee with good credit can take less than 30 minutes of effort on the part of a lender. This is because lenders can now use artificial intelligence to underwrite clean files, and verifications of employment and assets are pulled automatically via the lender’s loan application […]Read More

Our Massive Jumbo Niche & How It Benefits You!

The median home value in many of our core markets is well in excess of $1 million! As a result – we were FORCED to become “Jumbo Financing Experts” because conforming (Fannie/Freddie) loans in coastal California are about as rare as California Condors. And – IT WAS PAINFUL! It was painful because every jumbo investor […]Read More

Using PMI To WAIVE Appraisal Contingencies

Many homebuyers do not realize that PMI can be an option for those who might want to make offers with no appraisal contingencies. This, of course, is a great idea, but with a HUGE CAVEAT: BEWARE OF JUMBO! PMI is always a great way to cover appraisal shortfalls on the conforming front. Example: Borrower intends […]Read More

Jumbo Lending Explained – How We Target Jumbo “Investors” For Every Borrower

We had an appraisal come in low last week, and the agents seemed to believe that our choice of “jumbo investor” (PenFed) had something to do with the low appraisal when that was not the case. Because the agents were smart and very seasoned, it occurred to me that I should explain the nature of […]Read More

Buying A Home For Your Child – Options?

WHAT IS THE BEST WAY TO BUY A HOME FOR YOUR CHILD? This is a question we see quite often so I thought I’d list the options. No Mas “FHA Kiddie Condo” Loans. This used to be a very flexible option where FHA allowed parents to put down only 3.5% in order to help kids […]Read More

10% Down Jumbo Options; 80/10/10s; Rates Hit All-Time Lows – Yawn

RATES HIGHER THAN IN JULY DESPITE “RECORD LOWS” Housing Wire was reporting that mortgage rates hit all-time lows again last week – and I yawned again last week. This is why. Until the mortgage industry comes to grips with its capacity issues, the actual mortgage rates that most lenders offer will not fall further. We […]Read More

1st/2nd Combos Instead of Jumbo; Backup Offers; Temporary Loans; Self-Employed Borrowers

1ST/2ND COMBOS INSTEAD OF JUMBO This is a reminder that 1st/2nd combo financing remains a great alternative to jumbo.  CA 2nd liens are Home Equity Lines of Credit (HELOCS) while Texas 2nd liens are fixed-rate 2nd mortgages; HELOC lenders tie their loans to Prime Rate (3.25% currently); and most accept revised appraisal guidelines (exterior only […]Read More

Jumbo Market Gets Even Tighter as Wells Fargo Pulls Out; Forbearances Again

WELLS FARGO PULLS OUT OF JUMBO MARKET Wells Fargo announced yesterday that it is pulling out of the jumbo mortgage market, sending shock waves through the industry (b/c Wells is such a force). Many other jumbo lenders and investors (that buy jumbo loans) are following suit or tightening up their own internal policies in response […]Read More

If You Owe Income Taxes, Can You Get a Mortgage? Yes!

Income Taxes Owed Income tax liabilities are a frequent issue during tax season, and worthy of addressing again. Borrowers can get mortgage financing if they owe income taxes, in most cases. This is important because borrowers often have limited funds for a down payment and cannot afford to pay their taxes without depleting those funds. […]Read More

Cash to Close And Reserves

Borrowers often come to us with just enough funds for their down payment, without accounting for closing costs and reserves. “Reserves” have become a bigger issue lately as more borrowers shift into the jumbo arena. Reserves are the liquid funds left over after a transaction closes. Reserve requirements are usually expressed as a given number […]Read More

Short Sale Seasoning Revisited; Extenuating Circumstances Exceptions

We get so many questions about short sale seasoning that we thought we’d revisit the issue. FHA financing requires 3 years of seasoning. Conventional financing always requires 4 years now (used to be 2 in some cases). Jumbo lenders require 4 or 5 years, depending on the lender. Our 2nd Mortgage/HELOC lender requires 5 years. […]Read More

“Flip” Rules Again – Selling 90 Days After Purchase

We still see the occasional “Flip” surface, although not nearly as often as we saw them in 2010-2012. A “Flip” once again is a property that is purchased (usually by investors) and re-sold within 90 days. FHA will not finance Flips at all. Conventional and Jumbo lenders will finance Flips, but they require two appraisals. […]Read More