Jumbo loans jump up buying power
Rising property values coupled with low interest rates have brought on a supersized demand for jumbo loans in recent years. As many major markets across the U.S. have a dwindling inventory of homes at or under Fannie Mae/Freddie Mac conforming loan limits (currently set at $359,650 for a single family residence), more and more buyers are turning to jumbo – or “non-conforming” – loan programs to realize their homeownership aspirations.
The good news is that the multitude of buyers jumping on the jumbo bandwagon has compelled some lenders to kick up the offerings on these products to gain a competitive edge.
These lenders are offering home loans up to a whopping $6 million, even on second homes – helping to simplify the financing process for those dream properties. Traditionally, buyers seeking this level of financing had to go to private lenders or hope for an exception to be granted to get approved. And, if they were able to secure an exception, it was typically limited to a certain loan program.
Such mega-financing is frequently part of the lender’s regular loan guidelines and also is available with reduced documentation requirements designed to save qualified buyers time and hassle for a wide range of loan programs, including:
· Fixed rate
· 3/1 and 5/1 fixed-period adjustable rate mortgages (ARMs)
· Pay Option ARMs
· Interest only 3/1 and 5/1 fixed-period ARMs
· 1-month and 6-month interest only LIBOR ARMs
Now may be a great time to tap into the wealth of jumbo options that pump up purchasing power for qualified borrowers, helping them capitalize on today’s swelling real estate market.
Sarah Davis is the sales manager of the Avon office of Countrywide Home Loans, a national leader in residential finance. The office is located at 30 Benchmark Road, Suite 209, and home loan experts are ready to assist customers at (970) 748-5018. Additional information about the company’s full array of products and services is available online at http://www.countrywide.com.
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