Mortgage Video & Blogging Community

In Arizona, the real estate market is heating up on the low end and showing signs of life on the higher end. As the higher end luxury home market shows signs of life, more people are starting to ask about what jumbo loan products are available and under what terms. You can still get jumbo financing, but the terms of today’s jumbo loan market are much different than they were just a couple of years ago.  Here are some general guidelines for lenders who will actually lend under the Arizona jumbo mortgage programs available.

Arizona Jumbo Mortgage Loan LTV Requirements:

A few years ago, you could easily borrow up to 100% on almost any jumbo loan, but today there are definately LTV restrictions and they usually get tougher as the loan amounts get higher.

• For loans up to $900,000 expect the loan to value ratio to be around 75%.
• For loans up to $1,200,000 expect the loan to value ratio to be around 60%.
• For loans up to $1,500,000 expect the loan to value ratio to be around 50%.

Arizona Jumbo Loans: Credit Score Requirements

Generally speaking, people who are considering a jumbo loan have pretty good credit. If your credit is above 750, you should be fine. If your credit score is above 680, but less than 750 be sure to double/triple check with your loan office about specific program guidelines. If your credit score is less than 680, it will be tough to find jumbo financing.

Arizona Jumbo Loans: Income Requirements

For a jumbo loan program, the general income debt-to-income guideline is 35% – meaning no more than 35% of your monthly income should go toward your monthly mortgage payment.

Arizona Jumbo Loans: Jumbo Mortgage Rates

So what kind of rates are there currently for Jumbo loans? Generally speaking, the mortgage rates for Jumbo loans in Arizona are in the 5%’s for any adjustable rate (3/1, 5/1 ,7/1) and in the 6%’s for any fixed rate Jumbo loan.

So generally speaking – yes, lenders are lending money in the jumbo loan market… it is just much different than it was 2 years ago.