JUMBO MARKET TIGHT – WEIR MANUEL REALTORS HAS OPTIONS

While there are still plentiful mortgage loan options in the conventional arena, the sub-prime crisis has severely wounded the jumbo loan market. Jumbo loans are loans over $417,000. Because there is virtually no one buying jumbo loan packages on the secondary market, rates for these products have skyrocketed to the 8.5 to 9.0 percent range.

Compared to current rates on conventional loans at just over six percent, the cost of jumbo loans is very expensive. The monthly payments necessary to acquire a home using a jumbo product are in many cases prohibitive. At a minimum, it will cause your buyers to pause.

Take heart, however, because there are some creative options available to jumbo buyers with excellent credit and twenty percent down payments. Our partners at National City have created relationships with certain alternative capital resources that will make jumbo mortgages available at rates near those of conventional products. WMR has also developed some additional resources outside of National City that can be of help to you and your clients needing mortgages over $417,000.

Keep in mind that in order to get these preferred rates the client must have excellent credit and a down payment of at least twenty percent. Please also keep in mind that these are unconventional lending sources, so the transaction may take longer to close and require more documentation than a typical mortgage loan.

While closing large residential transactions may not be quite as simple as it used to be, WMR has options for you and your clients. Please consult your manager for additional help in putting these types of transactions together.