Community banks, credit unions and other small lenders that make “jumbo loans” too large for purchase or guarantee by Fannie Mae and Freddie Mac are partnering with private mortgage insurers to offer jumbo loans to borrowers making down payments of less than 20 percent, MarketWatch’s AnnaMaria Andriotis reports.
Mortgage Guarantee Insurance Corp., Genworth, United Guaranty and Radian Group will all insure mortgages of up to $850,000, and United Guaranty has a limited program to insure loans of up to $1 million.
Rates and terms on jumbo mortgages have also relaxed in the last six to 12 months, to the point that interest rates on 30-year fixed jumbos are now reportedly comparable to rates on conventional loans, and borrowers with credit scores of 700 or below now have a better shot at obtaining one. Source: marketwatch.com.
