Jumbo loans allow borrowers to acquire mortgages beyond the conforming loan limits set by government-backed entities and are used for everything from purchasing luxury homes to investment properties. Since jumbo loans aren't backed by Freddie Mac or Fannie Mae, they carry a higher risk for mortgage lenders. COVID-19's negative impact on the economy has increased that risk as unemployment and forbearances continue to grow, making it more difficult 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.
If you have good credit, however, there are still a few lenders like NASB who continue to offer jumbo loans. With any mortgage loan during the coronavirus lockdown, you need to make sure your employment situation is secure, and you have enough cash reserves for fees and expenses. This is especially true of jumbo loans.
If you have any questions or would like to learn more about how to secure a jumbo loan, give the experts at NASB a call at 855-465-0753.