LoanCentral's Real Estate Lending Blog

For all loans closing on or after 10/1/11, the new loan limits for ‘conforming jumbo’ loans will be $506,000. True conforming loan limits remain at $417,000. Loan amounts between $417,001 - $506,000 represent ‘conforming jumbo’ programs.

These loans have slightly higher interest rates than loan amounts up to $417k, but enjoy the same program guidelines. This provides an advantage over the jumbo programs which carry higher interest rates and much more stringent underwriting guidelines.

Speaking of jumbo programs…we are seeing many more jumbo programs emerging into the market, and guidelines loosening up a bit as well.

Down payment requirements, credit score requirements, and debt-to-income ratios have all loosened in the past couple of months. We also now have options for those buyers who have a lot of liquid assets, but not enough income to qualify for their jumbo loan.

Jumbo interest rates have improved dramatically in the past several months as well. As you can see, we have 5 year ARM loans at 3.62% for loan amounts up to $1,500,000!!!

At LoanCentral, we offer a wide variety of programs to meet the needs of our diverse client base. Act now, these rates won’t be around forever!