The Veridian Blog

Hi all -

Wholesale lenders will begin accepting applications for the new "Jumbo-Conforming" loans as early as March 17th.  These new loans can be purchased by Fannie Mae, who coined this name for loans greater than $417,000 and up to $729,750 in the nation's most affluent areas as a result of the Economic Stimulus Package signed into law on February 13. 

Fannie has set stricter guidelines for Jumbo-Conforming applications, as follows:

* 1-unit properties only

* No consolidation of 1st/2nd mortgages.  2nd mortgages must be subordinated.

* No cash-out refinances.

* Full documentation only

* Maximum 75% LTV on refinances, 80% on ARM purchases, 90% on Fixed purchases

* Minimum 660 FICO

* 2nd home and Investor properties maximum LTV/CLTV of 60%.

* Loans must be originated on or after 3/1/08 and on or before 12/31/08

So, there it is.  Now let's hope that mortgage rates fall to make this whole thing worthwhile and actually stimulate the economy.  Some additional restrictions apply and there will be higher fees/rates specifically for Jumbo-Conforming loans.  Please call us to inquire further - thank you!

Richard