My experience qualifying for a jumbo loan

[eagleeye]

Let me preface this by saying that I was not looking to buy and I probably won’t but a very enticing opportunity presented itself and I decided to explore my financing options. I would require a jumbo loan (in excess of $1M). My lender qualified me based on a LTV no greater than 75% and 12 months of reserves. They would also require 2 appraisals on the property. I almost forgot to mention that the interest rate jumped a half a point in just the couple of days since I submitted my application. I also spoke with a mortgage broker who told me that it’s virtually impossible to find an investor willing to fund a jumbo loan in California. Despite being a longtime follower of this site, I was almost ready to believe that the high-end coastal market would remain immune to significant price declines. After this experience I no longer have any doubt that if these lending standards are indeed the new norm there is no way the ridiculous prices can be justified or maintained.

[nostradamus]

I would agree with them, for loans that large the LTV should at most be 75%. People buying houses in that range should be able to cover it. Investors no longer have the flexibility to dish out cash to every speculator who thinks they found an enticing opportunity but can’t fund even 25% of it.

It is an interesting point that this may affect the high end market, and I definitely agree with you there.

[nostradamus]

I would agree with them, for loans that large the LTV should at most be 75%. People buying houses in that range should be able to cover it. Investors no longer have the flexibility to dish out cash to every speculator who thinks they found an enticing opportunity but can’t fund even 25% of it.

It is an interesting point that this may affect the high end market, and I definitely agree with you there.

[nostradamus]

I would agree with them, for loans that large the LTV should at most be 75%. People buying houses in that range should be able to cover it. Investors no longer have the flexibility to dish out cash to every speculator who thinks they found an enticing opportunity but can’t fund even 25% of it.

It is an interesting point that this may affect the high end market, and I definitely agree with you there.

[nostradamus]

I would agree with them, for loans that large the LTV should at most be 75%. People buying houses in that range should be able to cover it. Investors no longer have the flexibility to dish out cash to every speculator who thinks they found an enticing opportunity but can’t fund even 25% of it.

It is an interesting point that this may affect the high end market, and I definitely agree with you there.

[nostradamus]

I would agree with them, for loans that large the LTV should at most be 75%. People buying houses in that range should be able to cover it. Investors no longer have the flexibility to dish out cash to every speculator who thinks they found an enticing opportunity but can’t fund even 25% of it.

It is an interesting point that this may affect the high end market, and I definitely agree with you there.

[jpinpb]

Anyone hear that noise?

Loud, screeching brakes being slammed by banks. Wreckage ahead. Warning: Foreclosures and defaults. Proceed w/caution.

It’s going to take a while to clean up this mess. Road crews will be here a while. Paramedics (government) on scene can’t revive the strewn bodies. Some people will survive by abandoning their vehicles and walking away w/marred credit and bruises.

Yellow tape everywhere. Detours while roads are closed. Do not enter!

[jpinpb]

Anyone hear that noise?

Loud, screeching brakes being slammed by banks. Wreckage ahead. Warning: Foreclosures and defaults. Proceed w/caution.

It’s going to take a while to clean up this mess. Road crews will be here a while. Paramedics (government) on scene can’t revive the strewn bodies. Some people will survive by abandoning their vehicles and walking away w/marred credit and bruises.

Yellow tape everywhere. Detours while roads are closed. Do not enter!

[jpinpb]

Anyone hear that noise?

Loud, screeching brakes being slammed by banks. Wreckage ahead. Warning: Foreclosures and defaults. Proceed w/caution.

It’s going to take a while to clean up this mess. Road crews will be here a while. Paramedics (government) on scene can’t revive the strewn bodies. Some people will survive by abandoning their vehicles and walking away w/marred credit and bruises.

Yellow tape everywhere. Detours while roads are closed. Do not enter!

[jpinpb]

Anyone hear that noise?

Loud, screeching brakes being slammed by banks. Wreckage ahead. Warning: Foreclosures and defaults. Proceed w/caution.

It’s going to take a while to clean up this mess. Road crews will be here a while. Paramedics (government) on scene can’t revive the strewn bodies. Some people will survive by abandoning their vehicles and walking away w/marred credit and bruises.

Yellow tape everywhere. Detours while roads are closed. Do not enter!

[jpinpb]

Anyone hear that noise?

Loud, screeching brakes being slammed by banks. Wreckage ahead. Warning: Foreclosures and defaults. Proceed w/caution.

It’s going to take a while to clean up this mess. Road crews will be here a while. Paramedics (government) on scene can’t revive the strewn bodies. Some people will survive by abandoning their vehicles and walking away w/marred credit and bruises.

Yellow tape everywhere. Detours while roads are closed. Do not enter!

[eagleeye]

I’m no investor and even under these terms, I fully qualify. I cashed out a while ago and I’m in no rush to dive back in, but my dream home came on the market and I seriously considered it. I almost let my emotions get the best of me. This level of scrutiny made me see that the lending crisis is much worse than I could have imagined. It showed me the new reality and quickly brought me back to my senses. I fully support these practices. Heck, I applaud them. It will only benefit me in the long run. Patience will untimately be rewarded.

[eagleeye]

I’m no investor and even under these terms, I fully qualify. I cashed out a while ago and I’m in no rush to dive back in, but my dream home came on the market and I seriously considered it. I almost let my emotions get the best of me. This level of scrutiny made me see that the lending crisis is much worse than I could have imagined. It showed me the new reality and quickly brought me back to my senses. I fully support these practices. Heck, I applaud them. It will only benefit me in the long run. Patience will untimately be rewarded.

[eagleeye]

I’m no investor and even under these terms, I fully qualify. I cashed out a while ago and I’m in no rush to dive back in, but my dream home came on the market and I seriously considered it. I almost let my emotions get the best of me. This level of scrutiny made me see that the lending crisis is much worse than I could have imagined. It showed me the new reality and quickly brought me back to my senses. I fully support these practices. Heck, I applaud them. It will only benefit me in the long run. Patience will untimately be rewarded.

[eagleeye]

I’m no investor and even under these terms, I fully qualify. I cashed out a while ago and I’m in no rush to dive back in, but my dream home came on the market and I seriously considered it. I almost let my emotions get the best of me. This level of scrutiny made me see that the lending crisis is much worse than I could have imagined. It showed me the new reality and quickly brought me back to my senses. I fully support these practices. Heck, I applaud them. It will only benefit me in the long run. Patience will untimately be rewarded.

[Author]

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