Our Jumbo rates are as much as 1/2 percent lower than our Conforming (Fannie and Freddie) rates.
Our low Jumbo rates are also available for qualified borrowers down to the “low balance” conforming loan limit of $484,350.
These very low Jumbo rates are highly unusual and there are several reasons for this including:
(1) Fannie and Freddie keep increasing their fees which pushes up their rates;
(2) the Jumbo investors who buy our loans desperately need yields that they cannot obtain outside the mortgage realm with commercial lending; and
(3) our best Jumbo investors have much more stringent lending guidelines.
JUMBO vs. CONFORMING
Conforming loans, once again, are loans that “conform” to Fannie and Freddie guidelines.
Here are some basic differences between Conforming Loans and our best Jumbo Loans (I added an FHA column too).
|Min Down Payment||15%||3%||3.5%|
|Max Debt Ratios||43%||49.99%||56.99%|
|Required Reserves - In Terms of Payments||12 Housing Payments||None Required||None Required|
|Best Credit Score||780||740||720|
|Lowest Credit Score||680||620||580|
|Closing Period||21 Days||14 Days||14 Days|
While jumbo loans can have much lower rates, they are simply much harder to qualify for as you can see above – particularly with respect to required “reserves” after close of escrow.
But, for well-qualified borrowers, our Jumbo rates are as low as … ever.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646