Jumbo Mortgage Rates: Jumbo to Conforming Yield Spread Down!

Let's start by defining a Jumbo Mortgage

It is a home loan that exceeds the loan limits set by Fannie Mae & Freddie Mac ($417,000).

Because these loans cannot be securitized by institutions like Fannie Mae & Freddie Mac, they generally have a slightly higher interest rate than their smaller "conventional/conforming" counterparts; they essentially carry a higher credit risk and therefore trade at a slightly higher yield premium.

In the summer, right around the month of August when our "Credit Crisis" hit the market, we saw this yield premium spread from an average .25% above the conforming market up to .875% above the conforming loan market.

With everyone ranting,

"100% Financing is Dead!" "Stated Income & No Doc don't exist any more!"

You would think that a Jumbo Loan today on Stated Income & 90% - 95% LTV (Loan-to-Value) doesn't exist! Right? WRONG!

Wall Street is easing back into the Jumbo Market. And the yield spread between conforming and jumbo is narrowing down, and here's some of what you can get...

FlexPay Hybrid Option Arm:

* Full doc to 95% to $500,000
* SIVA to 80% to $650,000
* Loan Amounts to $2,000,000
* Min Fico 680
* Max DTI is between 40-45% depending on LTV
* Min Reserves is 6-12 months depending on Loan Amount
* Primary Residence Only
* 5/1 is the only term available
* 0,1 or 3 yr prepays available
* No Restriction on SIVA w2

Alt-A Jumbo:

* Full Doc to 95%, SIVA to 90%, No Ratio to 80% and NINA to 75%
* Loan Amounts to $2,000,000
* 2 months PITI to $650,000 on full doc
* 6 months PITI SIVA and No Ratio
* Non-Owner to 90% Full Doc, 80% SIVA and 70% No Ratio
* 55% DTI Full Doc, 50% DTI SIVA
* Full Doc Fico to 620, SIVA to 640
* No Restriction on SIVA w2

For more information on these products and guidelines, please do not hesitate to contact me directly at 323.810.2175 or contact me online here!

Jumbo Mortgage Rates Today:

Rates on 30-Year Jumbo Mortgages average 6.75%.

Rates on 15-Year Jumbo Mortgages average 6.5%.