Jumbo Loans Available Again!

A recent Business Week article reports that jumbo mortgage money is flowing back into the home loan market. Certified Luxury Home Marketing Specialist (CLHMS) Lois Marris sees this as great news for the Rochester luxury home market.

Jumbo loans are generally mortgages exceeding Fannie Mae and Freddie Mac's statutory high-cost market purchase limit. This limit in Rochester Minnesota is $417,000. Loans higher than this amount cannot be insured by Freddie Mac, Fannie Mae or the Federal Housing Administration and therefore present more risk to the lender. As such, the jumbo loan interest rate has normally been slightly higher than other home loans. In recent months, lending institutions have also required up to 30% down payment.

Higher interest rates and down payment requirements have significantly slowed sales of upper tier homes.

NEW Hope for the Luxury Market -According to the Business Week article, new money is starting to flow into jumbo mortgage loans. Major banks funding jumbo loans with fixed 30-year rates in the upper five percent interest range. Bank of America, Wells Fargoand ING Group are some of the banks said to be offering jumbo loans again. David and Lois Marris also work with several Rochester private bankers to assist their clients with loans.

Expect stringent qualifying requirements such as a high credit score, significant down payments and be prepared to provide lots of financial documentation. These loans are indeed a higher risk to the lender and many are expected to hold the loans in-house rather than sell them to Wall Street investors.

The time is right to buy luxury! If you are a luxury home buyer with a good credit score and the right down payment now is the time to buy. Interest rates are low. There is a large inventory of luxury homes. Luxury homes are selling at reduced prices. There are few competing buyers. It is also a great time to be a "move-up" buyer, selling your mid-range home and moving into your upper tier dream home.

You can search for Rochester luxury homes at http://www.davidandloismarris.com/luxury-home-search.asp. The Marris' also have a list of luxury homes being offered via private sale. For more information, contact Certified Luxury Home Marketing Specialist (CLHMS) Lois Marris at 507-398-3251 or LoisMarris@EdinaRealty.com.

---

David and Lois Marris are top producing real estate agents at Edina Realty of Rochester, MN. Edina Realty is Minnesota's number one real estate brokerage. www.DavidAndLoisMarris.com, DavidMarris@EdinaReatly.com, LoisMarris@EdinaRealty.com, 507-3983-3251.