Get your jumbo light mortgages here

Fannie Mae will start buying the new "jumbo light" loans of up to $729,750 from lenders on April 1. Loans originated after March 1 are eligible for delivery to Fannie, and the underwriting and pricing guidelines are posted will here.

See previous post on how to look up the new (temporary) loan limits for your area.

The government-sponsored mortgage repurchaser will start with 15- and 30-year fixed rate jumbo light mortgages, and then dive into 5/1 ARM loans on May 1.

So what will borrowers have to bring to the table? According to the product matrix, the smallest down payment on the fixed-rate loans will be 10 percent -- and you'll need a FICO score of 700 to put down anything less than 20 percent. Fannie is not interested in buying any jumbo lights made to borrowers with FICO scores of less than 660. Full documentation, FICO score, and a maximum debt-to-income ratio of 45 percent are required.

Not eligible: reverse mortgages, second liens, streamlined refinance or purchase loans, or cash-out refinances.

The requirements are even stricter for ARM loans -- nothing less than a 20 percent minimum down payment will do. And those down payment requirements are only for owner occupied homes. Buying a second home or investment property? You need a 40 percent down payment to qualify, and please, no more than four loans financed per customer!

The loan level price adjustments are 0.25 percent for fixed rate loans and 0.75 percent on ARM loans, and all the other price adjustments Fannie has in force apply -- plus those pesky adverse markets delivery charges in areas experiencing price declines.

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