One of most common questions I am asked these days is about financing. What are rates for jumbo loans? Where can I find them? Are they hard to get? So I decided to consult James Venney of Gibraltar Private Bank & Trust so he could shed some light on this subject for all you readers.
The good news, James says, is that they are readily available! The guidelines for jumbo loans are not nearly as stringent as people think, and he says Gibraltar has a very flexible jumbo loan product. There are some basic requirements that must be met, but people are getting jumbo loans right now.
In general, your credit score needs to be 680 or better. The down payment on the house needs to be at least 20%. And you will be required to show full documentation to the bank – income & asset information. Assuming all of these criteria are met, James is seeing interest rates these days anywhere from 6.75% down to 3.25%! These are historically low rates! And in general, if you are able to put down more than a 20% down payment, you are provided more flexibility and your interest rate gets even better.
Gibraltar also offers a special jumbo loan program for emerging professionals – such as doctors, attorneys and CPAs – offering as much as 90% financing in some cases.
James tells me he is really starting to see more activity in this jumbo loan arena. The very high end properties are still soft and not as much financing is being done, but he has seen a huge increase in jumbo loans with purchase prices between $500,000 and $3 million. Because prices have come down so much and interest rates are so low, it’s a great time to buy!