Granite Bay Home Sales Continue to Do Well

Homeowners experiencing some nice appreciation in the Granite Bay neighborhood of Sacramento. Since February 2012, the average price per sq ft has increased to $253 from $200. Price increases are showing a recovery mode similar to other desirable neighborhoods in California. Granite Bay has an excellent school system with Great Schools ratings of 10 for three of the areas elementary schools (Greenhills, Loomis Basin Charter, and Oakhills).

Granite Bay Real Estate

House $/Sq.Ft.

Residents also enjoy easy access to Folsom lake. Need financing in Granite Bay or Los Lagos? Try ijumboloan.com

Are There Super Jumbo Loans for First Time Buyers?

Does anyone have suggestions on banks that will originate jumbo million dollar loans to people who do not have countless stacks of cash lying around idle and are a FTHB? I don't want to get cornered into a position with the lender who at the last minute may change the terms due to items out of my control.

When it comes to rates on their Jumbo ARMs, Union Bank does a great job. The larger banks: Chase, Wells Fargo, Bank of America pretty much control the million dollar+ market with very attractive rates but longer closing times. Keep in mind the restrictions on first time home buyers (those who have not owned a home in the last three years) with cash reserve requirements of 12 months after closing and loan limits of $1 million maximum. It would be a horror story to find this out towards the end. The banks are just covering their bases with the 12 month liquid reserve requirement although Chase and Wells allow the reserves to be from a retirement account with the 12 month reserve requirement although Chase and Wells allows it to be from a retirement account and other liquid assets. What lender in their right mind would want to approve a loan only to discover the borrower cannot repay the loan in a couple months.

Rates for Jumbo Loans Are as Attractive as Conforming Amounts

The largest banks that are offering jumbo mortgages, Wells Fargo & Co. and JP Morgan Chase & Co., those loan amounts over $417,000, are on currently on par with rates for conventional loans. According to information from HSH, 30-year fixed-rate jumbo loan rates hit a six-year low in June as far as costs at just 0.16 percentage point more than conventional financing. Furthermore, 5-year Jumbo ARMs closed the week out at 0.09 percentage point less which is the best dating back to 1998. While rates for conventional mortgages surged last month by the most in two decades, the fees associated with financing million dollar homes are getting to be a great deal in comparison. Banking institutions with large cash deposits seeking to originate more loans are quelling rates to remain attractive to affluent clients due to home values surging in high-cost cities from New York City, DC Metro, Seattle to San Francisco and Southern California.

Jumbo mortgages loans currently available for single-family residences in high-cost areas are as much as $729,750. There are some lenders and bankers who have niche portfolio programs with low down payment options up to $1 million and better loan-to-value options up to $3 million. Larger Loans Are Comparatively More Affordable Paul Miller, an analyst with FBR Capital Markets in Arlington,VA claims that larger-sized loans are increasingly becoming less expensive since by and large the banks tend to hold them on their balance sheets as opposed to grouping them together and selling them to investors. Jumbo Origination Volume In Q1 of 2013 mortgage origination for jumbo financing increased 15 percent to $54 billion, up from the previous year, and if this rate continues, it will be $220 billion in 2013, the highest level since six years ago. Origination levels have not even come close to the decade ago levels of $650 billion. Good news for sales according to Zillow Inc. regarding higher priced homes from $1 million to $5 million in the United States soared 13 percent in April from the prior year, which is two times higher than the 5.1 percent surge for all homes. The San Francisco Bay area lead all 20 major cities in gains with a 24 percent rise in April from the previous year from the S&P/Case-Schiller index. So, with positive signs of larger home value increases, banks and higher-end financing is easing and allowing more wealthy buyers to purchase this segment of homes. At the same time, housing debt is giving the impression of low risk, with mortgage defaults declining from unheard of rates and once values for residential property began to recover last year. Now, is a good time as ever to buy an luxury home priced over one million dollars. Visit http://www.ijumboloan.com for more information about financing.

Assistance for High Cost Area Borrowers

Prospective homebuyers in high cost areas are part of a growing trend for down payment assistance (DAP) programs. High-cost areas where homebuyers who predominantly need help live in the Tri-state-area of New York, Connecticut and New Jersey, Washington, D.C., and regions of California. With years of analyses, people who are beginning their careers as a doctor and faculty professors at universities are professions who are typically given financial assistance. Some may feel they will already have perks in their profession, so why give them more advantages. The programs exists because this group of professions has the highest repayment rate for mortgage loans.
Most lenders who offer jumbo loans generally demand 20% or higher down payments from borrowers, and that can be substantial money to come up with when the home price is $750,000 or more. Fortunately, for borrowers down payment help can come in the form of advances on bonuses, lump-sum payments, or a second mortgage with highly attractive terms made by the employer.
Universities are well-known for providing assistance to their professors that take the form of yearly monetary supplements which can be used for a down payment, closing costs, or other fees.
As mentioned previously, those who have enjoyed a long standing benefit are physicians. Some loan programs have just 5% down terms up to $900,000 with certain restrictions for current residents, interns and fellows. As well there are your local city and state down payment programs for city teachers, firemen, and law enforcement.
And for home buyers who do not qualify for those programs due to profession, they can look into FHA loans as a means of securing jumbo financing in high-cost areas. Limits for an FHA loan can be as high as $729,750 in some parts and borrowers only need a 3.5% down payment, however, the FHA seems to revise its conditions every year or so once a program becomes widely popular so don't be surprised if down payment and/or mortgage insurance rise for jumbo loans.

Luxury Home Transactions Flowing Through More Quickly

Many housing experts have proclaimed that housing is on a solid rebound. Additional evidence to support that claim is the fact that jumbo mortgage closings have risen considerably in 2012 and are projected to keep that upward trend intact through 2013. The reason could be attributed to favorable terms for borrowers purchasing high-end homes.

Fannie Mae and Freddie Mac's has a defined conforming loan limit of $417,000 and jumbo loans are home loans that are higher than those offered by the two GSEs. For the majority of U.S. real estate, that is a loan amount above $417,000, or $625,500 in designated high-cost markets.

"Three to five years ago it would have been a real challenge during the peak of the housing crisis to find financing for a jumbo mortgage and when you did, the conditions were at a maximum,. People with 800 credit scores, 20-percent down and assets were being sent away. Now with more lenders offering this program it has driven rates down to very attractive levels," claims Tim Reese, a real estate journalist.

Positive trending housing market
Housing markets hit hard during the crisis such as California, Las Vegas, Arizona, and Florida have seen home prices increase 20% year over year in some areas. Lenders have become less worried about the risks and are more concerned with originating loans than declining them since securitization has picked up.  This occurs when a lender packages a pool of mortgages together into mortgage-backed securities and sells them off to investors.

Qualifying for a jumbo loan is fairly common with at 20% down and credit scores over 720 or borrowers can opt for the FHA route instead in some areas where they were declined. In some high-cost areas such as parts of California, the Northeast, and elsewhere FHA-insured loans are able to finance as much as $729,750, providing an attractive choice for borrowers with smaller down payments and credit scores as low as 580.