New 2014 Jumbo Loan Characteristics - Non-conforming Loan Limits Change

Jan. 29, 2014 - PRLog -- Helping buyers and current homeowners with big loan sizes, Sonoma County Mortgages offers clarity on the new characteristics of Jumbo Loans.

As of January 10th, 2014 the maximum ddebt to income ratio for consumers seeking a jumbo mortgage, is 43%. In other words, the proposed new housing payment plus other payment obligations cannot be more than 43% of the monthly income.

The irony is that while credit constraints for Jumbo Loans are still relatively tight,  more jumbo lenders are entering the marketplace to capitalize on the bigger loan size offerings.

Where credit is limited opportunity expands...

Jumbo Loans still are priced lower in terms of interest rates then it's traditional conventional mortgage loan counterparts. The phenomenon began in fall 2013 and has continued through the current.

"We're are seeing 30 year Jumbo Loan Rates at 4.25" says Scott Sheldon a senior loan officer and founder of SonomaCountyMortgages.com. "These rates are prime indicator of the secondary market's desire for larger loan amounts."

As Jumbo rates on 30 year and adjustable-rate money continue to be extremely  competitive, some lenders are scaling back by pricing their loans higher to avoid the investment risk. The players actively in the jumbo market tend to be larger scale direct lenders and bigger financial institutions.

Take Sonoma County, California-the conforming high balance loan limit is $520,950 any loan size larger through $2 million expect the cost of funds to be in the low 4% range.

"A higher-end consumer looking to finance anything over the conforming high balance loan limit in their county would be served looking at a jumbo product offering" says Sheldon.

Scott Sheldon originates Jumbo Loans.Visit http://www.sonomacountymortgages.com/jumbo-loans/ for more information.