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Jumbo Rates Are LOWER Than Our Conforming; Jumbo vs. Conforming

jumbo rate vs. conforming rateOur 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).

 JumboConformingFHA
Min Down Payment15%3%3.5%
Max Debt Ratios43%49.99%56.99%
Required Reserves - In Terms of Payments12 Housing PaymentsNone RequiredNone Required
Best Credit Score780740720
Lowest Credit Score680620580
Closing Period21 Days14 Days14 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.

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