Shelter Six:  Jumbo Blend is Ideal Jumbo Solution

Conforming remains as strong as ever with few changes, but FHA/VA has tightened up with a higher minimum credit score, lower max Debt Ratio, and 2 months of required payment reserves.

Most non-banks have lost Jumbo, and the banks still offering are doing so with extremely strict underwriting, such as 20% down, very high credit standards, and no exceptions.

Jumbo Blend is the perfect solution for today’s Jumbo customer. Max out a Conforming 1st mortgage at $510,400, and then tack on a 2nd mortgage HELOC up to 90% of the sales price.

Jumbo Blend allows for a lower down payment, lower credit scores, less strict underwriting standards, lower rates and payments, and an exterior-only appraisal.

Exterior-only “drive-by” appraisals are now allowed on virtually every type of loan (other than Jumbo).

Lenders are beginning to approve and offer virtual closings as well as a streamlined e-Closing process.

Rate Update

Mortgage rates finally stabilized last week, mostly due to the Fed buying unlimited bonds. For the first time in weeks, rates were less volatile holding steady in the mid 3’s.

This Week

Any news around the coronavirus will be the focus again this week. Weekly Jobless Claims are also due out on Thursday and CPI figures on Friday.

April 6, 2020 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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