How do we avoid jumbo loans?

Peaches Delight

Knows the Ropes
Sep 7, 2012
25
7
3
#1
We have been very blessed and expect to be moving somewhere inside the Beltline in Raleigh, as soon as we can make it happen.
Even with 20% down, which is about all we can do, we think it will put us into a jumbo loan.

Is there some way to avoid that jumbo loan expense on a home purchase in the $550,000 to $625,000 range? Credit is very good.
 
#2
Hi-
Jumbo loans begin at $417,001.00

With 20% down on the home prices mentioned you could
have a Home Equity Line of Credit from $23,000.00 to $83,000.00 on
the higher sales price. This is a piggy back.

Down side- HELOCs are a variable rate loan tied to prime.
They are low now, but when rates start up, the rates and payments
will also increase.

Review both Jumbo and piggy back options.
 

Peaches Delight

Knows the Ropes
Sep 7, 2012
25
7
3
#3
Thanks, Jim!
Is it harder to qualify for a program like that? Does it drag things out longer?
 
#4
Not necessarily harder.
You are just adding one more moving piece to the process.

The HELOC lender will have their own approval
schedule that your first mortgage lender cannot fully
control.....though they may be able to influence, depending
upon the relationship.

The HELOC lender will also have their own qualification
guidelines.

So, allow enough time to get both loans approved, and both
closing packages to the attorney on time.
 

Peaches Delight

Knows the Ropes
Sep 7, 2012
25
7
3
#5
OK. Thanks Jim.

Question: Is the HELOC lender always a 2nd lender, or does the same bank handle both loans ever?
 

Peaches Delight

Knows the Ropes
Sep 7, 2012
25
7
3
#7
Thanks for your help, Jim.
Mortgages and underwriting are crazy...
 
#8
Yes, securing a 2nd mortgage is a fantasic strategy to avoid a jumbo loan however it would also benefit you to look at a jumbo loan. With Client that have strong credit there may be an option to get a jumbo loan without private mortgage insurance with as little as 10% down. The jumbo rates in todays market are very aggressive.
 

Jaime

TREF Member
Dec 2, 2017
1
2
3
West Raleigh
#10
With conventional limits increased to $453,000, should I refinance my $435,000 JUMBO loan balance?
 

Sheryl Pike

TREF Member
Dec 1, 2017
4
1
3
Cary
#11
With conventional limits increased to $453,000, should I refinance my $435,000 JUMBO loan balance?
Jaime,
You need to speak with a good lender and look at the details of the loans.
You could be better off staying where you are.
 
Sep 7, 2012
15
6
3
#14
Get a good lender who can give you plenty of options.
But, it may be that you will go JUMBO. It may be the best option.
 
Dec 2, 2017
2
0
1
RALEIGH
#15
The good news is that in 2018 loan limits are increasing. To avoid a jumbo mortgage you want to keep your loan amount at or below $453,100.