Best Jumbo Mortgage Lenders

Best Jumbo Mortgage Lenders with Low Rates for 2022

The Mortgage Expert,     Publish On: October 25, 2021
Gustan Cho Associates are mortgage brokers licensed in 48 states
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In this article, we will discuss and cover the best jumbo mortgage lenders with low rates and thousands of mortgage loan programs. Gustan Cho Associates has a team of over 160 wholesale mortgage lenders. One of the most frequently asked questions at Gustan Cho Associates. As many of our viewers and the general public know, the housing market has been booming. Home prices have been increasing double digits the past few years. Seems like 2021 will again finish with double-digit housing price returns as it did in 2020 and 2021. The team at Gustan Cho Associates is having historic production years due to the strong housing market. Despite mortgage rates nearing 6.0% and inflation going through the roof, the housing market does not seem to care.

Best Jumbo Mortgage Lenders with Low Rates for 2022

The FHFA and HUD announced conventional and FHA loans have increased over the past six years due to surging home prices. HUD and the Federal Housing Finance Agency (FHFA) have been busy increasing both the FHA and Conforming loan limit caps for the past six years due to increasing home prices. Many experts and analysts say the HUD and the FHFA increase in loan limits are not near the speed of skyrocketing home prices. FHA loans for 2022 have a floor of $647,200 and a ceiling of $970,800 for single-family homes.

Best Jumbo Mortgage Lenders Exploding With New Homebuyers of Higher-End Homes

Many homebuyers have been priced out of the housing market. 2021 FHA loan limit was capped at $356,362. The 2021 FHFA conforming loan limit was capped at $548,250. HUD increased the FHA loan limit for 2022 to $420,680 in standard areas and $970,800 in high-cost areas. Any mortgage loan higher than the conforming loan limit for 2022 of $647,200 is referred to as non-conforming loans or jumbo mortgage loans. More and more homebuyers are turning into jumbo mortgages due to the rising costs of homes. You can not get a mansion anymore with a million-dollar house.

Jumbo Mortgage Lenders Become Increasingly Popular During Booming Housing Market

The housing market is expected to keep on booming due to the housing shortage and historic low mortgage rates. The coronavirus outbreak in February 2020 has forced many companies to convert their job business model to remote workers. Remote wage earners can live in any state they want. This is a positive for remote workers living in high-cost states like California, and New York to relocate to states with affordable housing, and lower taxes.

Best Jumbo Mortgage Lenders with Low Rates for 2022 and Dozens of Jumbo Mortgage Programs

Many traditional homes are higher than the conforming loan limit of $647,200. In order to be able to purchase a home, more homebuyers need to turn into a jumbo loan versus traditional government and/or conventional loans. Gustan Cho Associates has qualified and pre-approved homebuyers who have been shopping for homes for the past year. Homebuyers cannot purchase homes due to the booming housing market. The new norm was buying a home higher than the list price. In this article, we will discuss and cover how do I qualify for jumbo mortgage loans.

Jumbo Mortgage Loans Versus Traditional Government And Conventional Loans

Qualify For Jumbo Mortgage Loans During Booming Housing Market

How Do I Qualify For Jumbo Mortgage Loans versus government and conventional loans? Qualifying for a jumbo loan is not much different than qualifying for a government and/or conventional loan with the exception of a higher down payment and higher rates. The jumbo mortgage process and the paperwork required by lenders are the same. The borrower’s credit scores and the down payment requirements can be different.

How Do Jumbo Mortgage Lenders View Jumbo Loans

Jumbo loans are considered higher-risk loans. In the event of a foreclosure, it will just take weeks or a few months to have a traditional home under contract. However, it may take months and/or years to sell a foreclosed higher-end home. The ability to repay a jumbo loan is an important factor analyzed by lenders.  Lenders will require a lower debt to income ratio on jumbo loans. Most lenders will require six months to 12 months of reserves on jumbo mortgages. Due to the higher risk factors for financing higher-end homes, lenders will charge a higher rate, require a higher down payment on jumbo loans, lower debt to income ratio, and/or reserves. Reserves are one month’s of principal, interest, taxes, and homeowners insurance.

Mortgage Guidelines On Jumbo Loans

Mortgage companies that lend on jumbo loans do not follow a set of agency mortgage guidelines. Jumbo mortgage lenders have their own lending requirements. Jumbo mortgages are portfolio loans. Portfolio loans do not have to conform to Fannie Mae and/or Freddie Mac agency guidelines.

How Do Jumbo Mortgage Lenders Set the Minimum Jumbo Loan Requirements 

Jumbo mortgage lenders either hold the loans they originate and fund in their own portfolio or may sell them to hedge funds or other third-party buyers of mortgage-backed securities. Lenders of jumbo loans often have the flexibility to exempt certain lending requirements and/or make changes to their jumbo loan program requirements since they are portfolio lenders. For example, a jumbo lender may waive the reserve requirements or lower their credit score requirements if the subject borrower shows strong compensating factors. Other factors lenders can waive are a higher debt to income ratio, lower down payment requirement, or taking non-qualifying income as a strong compensating factor. There are jumbo lenders who can cross collateralize multiple properties to get the deal done.

90% LTV Jumbo Mortgage With 660 Credit Score And 50% DTI

One of the most popular jumbo loan programs at Gustan Cho Associates is the 90% LTV Jumbo Mortgage with a 660 credit score and 50% debt to income ratio. This is a traditional full doc jumbo mortgage loan program and not too many lenders offer this unique jumbo loan program. Gustan Cho Associates also has non-QM jumbo mortgages with credit scores down to a 500 FICO. The lower the credit scores, the higher the down payment requirement.

Alternative Financing and Non-QM Jumbo Mortgage Lenders

Gustan Cho Associates | NEXA Mortgage, LLC, is licensed in 48 states and over 160 wholesale specialty and jumbo mortgage lenders. Gustan Cho Associates has non-QM jumbo mortgages one day out of bankruptcy and/or foreclosure. Another popular jumbo mortgage loan program is the 12-month bank statement loan program for self-employed borrowers with no income tax returns required. You need to be self-employed for at least 2 years. 12 months of bank statement deposits are used as the monthly qualified income Withdrawals do not matter and income tax returns are not required. Gustan Cho Associates has dozens of jumbo loan programs for homebuyers of higher-end homes. If you need a creative lender with dozens of jumbo loan programs, please contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays.

Gustan Cho NMLS 873293 is the National Managing Director of NEXA Mortgage, LLC dba as Gustan Cho Associates NMLS 1657322. Gustan Cho and his team of loan officers are licensed in multiple states. Over 75% of the borrowers of Gustan Cho Associates (Gustan Cho Associates) are folks who could not qualify at other lenders due their lender overlays on government and conventional loans. Many mortgage borrowers and real estate professionals do not realize a mortgage company like Gustan Cho Associates exists. We have a national reputation of being a one-stop mortgage company due to not just being a mortgage company with no lender overlays but also offering dozens of non-QM and alternative financing loan programs. Any non-QM mortgage loan program available in the market will be offered by the team at Gustan Cho Associates. Our team of support and licensed personnel is available 7 days a week, evenings, weekends, and holidays.

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