During the past year, it’s been difficult to take out a “jumbo mortgage” – i.e. a home loan that exceeds the limits set by Fannie Mae and Freddie Mac. Many buyers looking at higher-end properties have struggled to find lending solutions, even when they could afford the payments.

But, it looks like the tide may be turning as a growing number of banks reintroduce jumbo mortgage  programs.

The Wall Street Journal reports:

“Lenders no longer have many institutional buyers for their jumbo loans, forcing them to keep the loans they write on their books. Banks held back when cash was tight. But banks have more money to lend these days, as consumers have taken money out of the stock market and put it into safer investments…

Plus, banks have gotten assistance from the federal government, and record-low conforming mortgage rates have inspired more people to refinance loans — giving banks some more liquidity, he says.”

This is good news for potential buyers, who may now take out a jumbo mortgage from a traditional lender instead of seeking out more costly creative financing strategies.

See Also:

Non-Conforming Bank Loans

Tags | creative financing, jumbo mortgages, non-comforming mortgages