More Jumbo Loan Options Appear in the Market
The jumbo mortgage loan market is continuing to strive and offers more loan options and more lenders lenders recently. This is why it’s significant for you to fully evaluate your options if you’re in the market. It’s been noted that more lenders have been willing to consider jumbo mortgages now which is uncommon for the market.
About 3 years ago, the jumbo loan market was completely controlled by a small amount of large banks. Jumbo mortgages are often known as non-conforming loans and can get pretty pricey in some areas. Compared to conforming mortgages, non-conforming loans typically have higher interests rates and has been modified to meet the needs of borrowers in need.
More Jumbo Loan Options Are Available
Large and small lenders have begun to offer more jumbo loan options and have help to make it easier for borrowers to qualify. A bank manager in New York notes that the amount of lenders in New York that provide jumbo loans has increased about 20% and that the market has become much more competitive. Another mortgage broker in New York expressed that over the last 6 months, the amount of banks with excess cash who are looking to lend has continued to rise.
The total revenue from jumbo loans in the first quarter of this year alone has reached an impressive milestone of $63.8 billion which is an 18% increase based on the first quarter of 2011. There are also reports that indicate that 16.6% of all loans in the first quarter were derived from jumbo mortgage loans which is about a 10% increase based on the entire year of 2009.
The jumbo loan market is considered extremely viable due to the average borrower. The average borrowers are those with higher credit scores and cash flow due the fact that jumbo mortgage borrowers are asked to make larger down payments.
Lenders Looking for Jumbo Loan Customers
As competition in the jumbo loan market increases, lenders are changing the way they do business in order to attain your commitment. More lenders have been focusing on new international borrowers and some jumbo loans have even been as large as $6 million. The standards of qualifying for the jumbo mortgage loans have become a easier.
More borrowers that may not have qualified in the past are being approved based on their current assets and bank accounts even if they don’t meet income requirements. The point of it all is to point out that there are many opportunities in the market even if you don’t believe that you are a fit candidate. If you’re interested in becoming a borrower, it’s been recommended that you apply with a lender that you already have an account with.