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Help for well-off borrowers

By Judy Martel ·
Thursday, May 9, 2013
Posted: 2 pm ET

Borrowers who want to trade up or move to expensive real estate markets will find that the jumbo mortgage market has been loosening up a bit. Jumbo mortgages are typically above $417,000, or $625,000 in pricey real estate markets such as Manhattan and parts of California.

The Wall Street Journal reports that some banks are lowering down payment requirements from the typical 20 percent for borrowers with excellent credit. Those with high incomes, such as doctors, are also being offered favorable terms. Additionally, employers in expensive areas of the country are stepping up their mortgage assistance programs in order to attract high-caliber employees.

As with traditional mortgages, jumbo mortgage rates are low. The latest Bankrate survey of mortgage rates showed that the spread between 30-year fixed-rate jumbo loans and regular loans, or conforming 30-year fixed-rate loans, is less than a half a percent. Jumbo loans rates are less than 4 percent, and part of the reason they're low is because stricter lending guidelines have led to fewer defaults, making them more attractive to investors.

Fannie Mae, Freddie Mac and the Federal Housing Administration financed a record $117.6 million in mortgages exceeding $417,000, according to Inside Mortgage Finance. That's a 38.9 percent increase from 2011. The non-agency jumbo market of $203 billion was a 19.4 percent increase from 2011 to 2012.

Keep up with your wealth and mortgages, and follow me on Twitter @JudyMartel.

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Mohamed Miraly
August 28, 2013 at 1:52 am

Please remov my letterMohamed

Mohamed Miraly
May 12, 2013 at 1:19 am

Erica,I want Jambo loan to buy commercial retail property for $ 14 million .i have $2 million down .it is rented by. Office Max one in university district in Seattle .rent is 53 thousand a month than goes to 56 to 60 thousand a month .it is 10 year lease. Please call me after 11 am Seattle time 206-232-9269.

May 10, 2013 at 2:17 pm

Hi this Erica just want know i am frost buy a home i do get Ssi $710month how much a month do i pay for can i get a loan for a home can you help me 0down