Jumbo Loan in San Francisco-California is easier to obtain
Normal loan size is typically $ 424k and as long as your loan balance is in this bracket you are considered to be underwritten by government agency guidelines like Fannie Mae and Freddie Mac. Now this loan size is not stoned. The agencies understand that California is a high cost area and some of the counties are really high cost area. So one standard cannot be applied to all counties throughout the state.
So each county has a specific loan amount limit specified to be considered or underwritten by Fannie Mae or Freddie Mac guidelines. If that threshold is exceeded it becomes or what is called a Jumbo loan. The loan limit is county specific and not city specific. So what happens when you hear the word Jumbo. Well nothing to be taken aback. Agency for loans in CA are loans underwritten by Fannie Mae or Freddie Mac guidelines. When you don’t have a government agency backing your mortgage. Its a jumbo loan.
Here the banks Niche, products and the standards come into play. Its wise to talk to a mortgage broker if you have a jumbo loan because he can bring many choices on the table as he is connected to several banks and lenders. Not only in terms of mortgage product choices but also in terms of which banks underwriting process is easier.Since jumbo has no backing of government agency. It becomes each to its own, meaning every bank will have their own rules. Which is why I suggest that San Francisco mortgage borrowers looking for lowest rate jumbo loan should be discussing with a broker instead of a bank or lender.
Your mortgage expert assessing your file would figure out looking at your need whether to go with a lender who has a slightly higher rate but won’t ask a million questions or to go with a lender who has the lowest mortgage rate but would be asking a million questions which could delay the closing due to more paper work needed.As far as income details are concerned. Typically banks or lenders would require two years of income details. Mostly in my experience borrowers who have jumbo loans like to manage their mortgage instead of paying off the mortgage. If you have a million dollar loan and 2 million dollar value, borrowers like these prefer to manage instead of paying off the mortgage. They know they have good equity in the house and it will keep building up in times to come.
Especially with big homes it’s also been seen that some banks like to send out two different appraisers from two different appraisal companies. Borrowers should not feel surprised to pay for appraisal twice.
For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. You can even e mail at roger@affordable-payment.com
Article by Roger Shanker
