Jumbo loans allow borrowers to acquire mortgages that exceed the conforming loan limits set by government-backed entities. They are used for everything from purchasing luxury homes to investing in properties. Since Freddie Mac or Fannie Mae doesn't back jumbo loans, they carry a higher risk for mortgage lenders. COVID-19's adverse economic impact has increased that risk as unemployment and forbearances grow, making it more challenging to find lenders willing to offer jumbo loans.
Last month, Wells Fargo suspended the purchase of jumbo loans from third-party mortgage bankers and will only accept loans from borrowers who hold at least $250,000 in liquid assets with the bank.
However, a few lenders like NASB still offer jumbo loans if you have good credit. With any mortgage loan during the coronavirus lockdown, ensure your employment situation is secure and that you have sufficient cash reserves for fees and expenses. This is especially true of jumbo loans.
If you have any questions or want to learn more about securing a jumbo loan, call the experts at NASB at 888-661-1982.
