Monday, June 23, 2014

Jumbo Loan Guidelines

Below, I have summarized the guidelines for our most popular jumbo loan program.  Jumbo loans in Oregon are loans that are over $417,000. If you have any questions as to whether you or a property would qualify for this jumbo loan, please give me a call!  We also have other jumbo products available that may better suit your needs or goals. 

General Guidelines
  • Owner-occupied
  • Second homes with no more than 4 financed properties, including the subject property
  • Cash-out refinances allowed (see cash out table on following page)
  • Contributions to closing costs/prepaids – maximum contributions from interested parties are limited to 3% of the lesser of sales price or appraised value
  • Gifts are acceptable – borrower must contribute minimum of 5% of their own funds if gift funds are being used  
Eligible Properties
  • 1-2 unit owner-occupied – purchase and limited cash out
  • 1-unit second home purchase and limited cash out refinance
  • Condominiums and PUDs acceptable subject to specific conditions
Ineligible Properties
  • Investment properties
  • Manufactured homes
  • 3+ units
  • Acreage exceeding 10 acres
  • Houseboats, floating homes, condo hotels, log homes, tribal land, and boarding houses
ARM Details
  • Index – One Year LIBOR
  • Margin = 2.25%
  • Interest Rate Caps:
    • First adjustment cap = 2%
    • Annual adjustment cap = 2%
    • Lifetime cap = 5%
Credit
  • Minimum of 3 open trade-lines required for each borrower
  • One must be open and active for 24 months or more
  • At least one must be installment or mortgage account
  • Remaining 2 trade-lines must be rated for 12 months or more
  • Authorized user accounts are not acceptable trade-lines
Documentation
  • Current paystubs covering 30-days of YTD earnings, 2 years W-2s
  • Self-employed:  2 years complete personal/business tax returns and YTD Profit & Loss and Balance Sheet
  • Two months bank statements for funds to close/reserves


Primary Residence Purchase and Limited Cash-Out Refinance
Fixed Rate


Property Type
Max LTV/CLTV
Max Loan Amount
Minimum Credit Score
Minimum Reserves
Maximum
DTI Ratio*


1-Unit
Condo
PUD
80%/80%
$1,000,000
720
Liquid: 3 months
Total: 12 months



43%
75%/75%
$1,000,000
700
80%/80%
$1,500,000
740
Liquid: 3 months
Total: 18 months
75%/75%
$1,500,000
720
75%/75%
$2,000,000
740
Liquid: 3 months
Total: 24 months
70%/70%
$2,000,000
720
2-Unit
75%/75%
$1,000,000
720
Liquid: 3 months
Total: 24 months
70%/70%
$1,500,000
720


Primary Residence Purchase and Limited Cash-Out Refinance
5/1, 7/1, and 10/1 ARM

Property Type
Max LTV/CLTV
Max Loan Amount
Minimum Credit Score
Minimum Reserves
Maximum
DTI Ratio*


1-Unit
Condo
PUD
90%/NA**
$850,000
720
Total: 6 months


43%
80%/80%
$1,000,000
720
Liquid: 3 months
Total: 12 months
75%/75%
$1,000,000
700
80%/80%
$1,500,000
740
Liquid: 3 months
Total: 18 months
75%/75%
$1,500,000
720
75%/75%
$2,000,000
740
Liquid: 3 months
Total: 24 months
70%/70%
$2,000,000
720
2-Unit
75%/75%
$1,000,000
720
Liquid: 3 months
Total: 24 months
70%/70%
$1,500,000
720


Second Home Purchase and Limited Cash-Out Refinance

Property Type
Max LTV/CLTV
Max Loan Amount
Minimum Credit Score
Minimum Reserves
Maximum
DTI Ratio*

1-Unit
Condo
PUD
75%/75%
$1,000,000
720
Liquid: 3 months
Total: 18 months

43%
70%/70%
$1,500,000
720
65%/65%
$2,000,000
720
Liquid: 3 months
Total: 24 months


Primary Residence Cash-Out Refinance
Fixed Rate

Property Type
Max LTV/CLTV
Max Loan Amount
Minimum Credit Score
Maximum
Cash Out
Minimum Reserves
Maximum
DTI Ratio*

1-Unit
Condo
PUD
65%/65%
$1,000,000
720
$250,000
Liquid: 3 months
Total: 18 months

43%
60%/60%
$1,500,000
720
$250,000
55%/55%
$2,000,000
740
$500,000
Liquid: 3 months
Total: 24 months
50%/50%
$2,000,000
720
$750,000

LTV = Loan-to-Value, CLTV = Combined Loan-to-Value, DTI = Debt-to-Income