Jumbo-Conforming Loan Limit

Currently we are licensed to do business in California, Illinois, and Missouri.  In April these changes should take effect for our investors.   Jumbo-Conforming Limit 

The major areas impacted by this temporary increase are certain counties in California.  Unfortunately, no counties in Missouri or Illinois will benefit from this increase.  There are a few more restrictions that are important to note.  Here is a highlight of the basic restrictions these Jumbo-Conforming mortgages will have above and beyond normal conventional loans :

Loan to Value

Fixed Purchases | 90% | >80% needs 700 score, <80 needs >660 score

Arm Purchases | 80%| >660 score required

Rate and Term Refi Fixed | 75% | Rate and Term Refi Arm | 75% |>660 score

Cash Out Refinances are not allowed.

Investment Property and Second Home limited to 60% and 660 score.

 Loan Programs Allowed | 15-30 Fixed, 5/1 Arms, 5/1 I/O Arms

Property Type | One Unit or Condo

Reserves | 2 month primary, 6 months investment

Debt to Income | 45%

And of Course there are additional Loan Level Price Adjustments of .25% for Fixed and .75% for Arms.   That means in order to acquire one of these mortgages, you will have to take as much as .125% or so higher than market interest rate for fixed and a significant hit to the 5 year ARM that just about insures that you don’t do one.