Jumbo Loans are getting easier to find although credit standards remain stiff, according to Nick Timiraos in an article in the Wall Street Journal.

Jumbo loans in the Washington Metro area are typically mortgages that exceed $729,750, the limit set to receive government backing or for lenders to sell the loans to mortgage-finance giants Fannie Mae and Freddie Mac. Since the mortgage crisis, banks haven't been eager to make these loans, so the market for these mortgages suffered, slowing sales of expensive homes.

But recently more lenders have been stepping up their offerings of jumbo loans.

According to Mr. Timarous, big banks have  gradually increased jumbo offerings. On Monday, Citigroup Inc. droped rates to around 5.6% on 30-year fixed-rate jumbo mortgages with down payments of at least 25%. "There are a lot of really good buyers who are underserved today, particularly in high-end markets like California and New York," said Sanjiv Das, chief executive of Citi's mortgage unit. He says the bank hopes lower rates will help "energize" those housing markets.

At J.P. Morgan Chase & Co., jumbo activity increased in every quarter last year, according to Inside Mortgage Finance. A lending official says the bank is reducing minimum down payments to as low as 20% in markets where prices appear to have bottomed.

Credit unions have also become a popular jumbo outlet. "They certainly filled the void locally...You used to never see a credit union do mortgage lending," says Guy Cecala, publisher of Inside Mortgage Finance.

Meanwhile, rates on jumbo loans have also fallen to their lowest levels in years. Last week, the average 30-year fixed-rate jumbo loan carried a 5.76% rate, just above the all-time low of 5.55% in June 2003, according to HSH Associates.

Underwriting standards are still very tight, with most lenders requiring minimum credit scores of 740 and down payments of at least 20% for loans up to $1 million and 30% for loans up to $2 million.
 
With the recent improvement in the jumbo market it may now once again be the right time to shop for your dream home. With rates low and pricing unbelievable, it may just be the best time ever for those in a position to take advantage of todays luxury home market.

Visit www.winchesterhomes.com or www.camberleyhomes.com to find your dream home at a price and payment that may not last for long.