[quote=spdrun]The OP said “jumbo loan” which implies that it is not GSE-backed.[/quote]
‘Banks’ rarely write their own guidelines for jumbos.
They use the guidelines for conforming loans.
Reserves are rarely needed for GSE loans, but often required for TRUE Jumbo. There are additional overlays.
Depending on credit score and the % of down payment,even getting a loan as investment property
may not even be an option.
There is way too much risk on the back end.
FNMA guidelines are in the range of 1300 pages.
Why would any institution decide on their own when the others are public information.
Unless one has a source of funds for 30yr money,
it’s crazy to lend money for 30yrs and only have
5yr CD’s. Pure insanity.
Very few institutions offer anything longer than a 10yr CD for deposits.
30yr bonds are trading at 3.11% today, approaching a 52 week high of 3.25%
