Source: The Wall Street Journal, M.P. McQueen (11/06/2010)
Jumbo Loans Come Out of Hiding
Jumbo mortgages are more readily available than they have been for the last two years. Both small and regional banks are beginning to offer them again.
In the second quarter of this year, jumbo lending rose 30 percent compared to the first quarter, according to Inside Mortgage Finance Publication, which provides industry data.
J.P. Morgan Chase home lending unit has increased jumbo lending by 146 percent in the first six months of this year. Wells Fargo’s jumbo lending is up 47.5 percent in the same time period.
Securing these loans continues to be difficult. Borrowers need excellent credit scores, verification of income and a down payment of somewhere between 20 percent and 40 percent. Some borrowers report that approval time can be faster at smaller banks.