FHA Jumbo Mortgage Loans: Getting Popular

We are starting to see more and more people willing to "step up" and finance more than the typical FHA loan - they are called FHA jumbo loans.

Depending on where you live, currently FHA will allow you to finance up to $729,000 with just 3.5% down? This product was part of the legislation passed by congress and chances are that it won't be around forever. It was a special program that was created by HUD and it could go away at any time.

So if you are shopping for a house in a market where FHA jumbo loans are allowed, be sure to ask your loan officer if this is an option that is available for you. Many people that I talk to are finding that the price declines in areas like California, Arizona, Nevada and Florida for homes over $500,000 have been much steeper than those homes that are priced under $250,000.

That million dollar home in 2006? Chances are that it is now selling for $500,000 and can qualify for a FHA jumbo loan.

Basic FHA jumbo loan guidelines include:

• Up to $729,000 financed. (based on the county loan limits published by HUD)
• 660 FICO score required.
• 3.5% down payment.
• 30 year fixed rates around 5%

So if you are thinking of selling your existing home and moving up, the FHA jumbo loan product may fit your overall financing objectives. FHA jumbo loans are done by FHA lenders who do regular FHA loans and generally take about the same amount of time to get closed as an FHA loan. Some lenders require 2 appraisals for FHA jumbo loans, but not all lenders do.

1. Evelyn B. Cherry 22, Jan, 2010

   I am sure jumbo conventional loans can be modified. These loans are regulated as well under the Department of Urband and Housing Development. Where can I find the modification requirements and procedures for modifying jumbo and conventional loans?

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