Stated income jumbo loans (over 417,000) are still around. Yes they are! 

 

I cannot predict how long, but I can tell you HSBC has a great loan. Citi and Bank of America do too.  There are a few small regional lenders that will offer no-income verification mortgages up to 1.5 million dollars.

 

How do you find them and what are the guidelines?

 

First the guidelines:

 

·        FICO scores: for sure over 700, some lenders require minimum 720 or better

·        Loan to values: 65-75%

·        Loan amounts: the best rates are for the loan amounts up to 750,000 over that, it gets rough

·        Post closing assets: you will need a minimum of 6 months housing payments left over after the closing, if not more

 

HSBC and Citi both gave me rate quotes over 10% with several points (premium) paid to them for 1 million and up. However, go below 750,000 and they can offer you around 6.5%7%.

 

 

Where to find the best lenders?

 

Call the big boys (what is left of them) and then get out your local yellow pages and start calling the local banks.  There will be a few small strong banks in your area that are sound and smart enough to lend out mortgage money to strong borrowers.

 

Do your homework and get it in writing.  Call around and ask about  FICO scores, loan to value, loan amount and post closing asset base….in that order.

 

PS: have a back up plan in case the lender goes south before you close. Remember, it is not over until the fat lady sings!

 

Dale Siegel

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