Before the bubble burst, jumbo loans, loans for more than $417,000, were as easy to come by as conforming loans. But since the market crashed, getting a jumbo loan was almost unheard of. But now that the luxury home market is doing so well, lenders are adjusting and starting to offer jumbo loans once again.
Figures from the National Association of Realtors show that sales are up by 38.7 percent from a year ago for homes with values between $750,000 to $1 million. For the over $1 million homes, sales are up 25.7 percent. Qualifying for a jumbo loan isn't as easy as qualifying for an FHA loan yet. But for those with high credit scores, lots of money in the bank and a few years of tax returns, they are definitely a viable option once again.me by as conforming loans. But since the market crashed, getting a jumbo loan has become almost unheard of. Now that the luxury home market is doing so well though, lenders are adjusting and starting to offer jumbo loans once again.
To read more about the resurgance of jumbo loans, clickhere. It is very important to speak with a lender who is experienced with jumbo loans before comitting to any loan. Rates will be higher and sometimes going with an adjustable rate mortgage can make more sense since rates are in the 2-3% range for ARM's. If you need a recommendation for a great jumbo loan lender, just let me know.
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