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Sources of 90% LTV jumbo mortgages for a refi in Illinois?

corkypa 38 September 13, 2012 at 08:36 AM
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I'm paying way to high an interest rate, but until this summer the real estate activity in my town was so moribund that house values had barely budged above their 2008 lows. As far as the assessors were concerned, everything had dropped 30% and stuck there. Maybe it was true, because mostly small, cheap houses sold.

This summer, more expensive houses have been selling, so I am hoping that my assessment will be high enough that I can get a refinance. However, it is hard to find anybody that will make a jumbo loan at 90% LTV, and I don't have the cash on hand to pay down the mortgage to reach 80%. I was wondering if any Slickdealers from the Illinois area know of a place that would handle such loans? I'm talking to local mortgage brokers, but the more sources I can find, the better.

The whole situation seems a bit odd, a real inefficiency in the market. Only LTV matters. Assets, income, and credit history are all irrelevant for most places as regards whether they would even accept an application. They hear 90% LTV jumbo, and wouldn't give a mortgage to God Himself. I wonder if it has to do with the tendency of places to securitize their loans. If your loan doesn't match the securitization standards, then they are unable to handle it?

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#2
Quote from corkypa View Post :
I'm paying way to high an interest rate, but until this summer the real estate activity in my town was so moribund that house values had barely budged above their 2008 lows. As far as the assessors were concerned, everything had dropped 30% and stuck there. Maybe it was true, because mostly small, cheap houses sold.

This summer, more expensive houses have been selling, so I am hoping that my assessment will be high enough that I can get a refinance. However, it is hard to find anybody that will make a jumbo loan at 90% LTV, and I don't have the cash on hand to pay down the mortgage to reach 80%. I was wondering if any Slickdealers from the Illinois area know of a place that would handle such loans? I'm talking to local mortgage brokers, but the more sources I can find, the better.

The whole situation seems a bit odd, a real inefficiency in the market. Only LTV matters. Assets, income, and credit history are all irrelevant for most places as regards whether they would even accept an application. They hear 90% LTV jumbo, and wouldn't give a mortgage to God Himself. I wonder if it has to do with the tendency of places to securitize their loans. If your loan doesn't match the securitization standards, then they are unable to handle it?
corkypa, when you refer to Jumbo, are you referring to a loan that exceeds the Conventional High Balance Limits for your County?

While standard Conventional Loan amounts go up to $417,000; there is another higher level known as 'High Balance', which is still administered by Fannie Mae and Freddie Mac, as well as high balance FHA as well. Once those limits are exceeded, then the loan is deemed Jumbo.

-Adam
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#3
Are you referring to the area-specific high-cost limits? I already checked that, and standard limits apply in my area. I happen to live in an expensive small town (school considerations drove me to it), but most of the area has more modestly priced housing.

I noticed that my neighbor, who bought his house about a month ago, financed with a full conforming loan, and a smaller additional loan to make up the difference. However, he put a total of 20% down, so his source of loans doesn't necessarily help me.
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#4
Unfortunately, as you have confirmed, you are at the $417,000 in your area.

Loan limits are set annually by the FHFA and in certain areas (designated by County) the $417,000 conventional limit can be exceeded utilizing the Conventional High Balance loan products, with loan amounts up to $625,500 in the designated areas.

https://www.efanniemae.com/sf/ref...oanlimits/

-Adam
Old Hippy & Mortgage Pro
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