Wells Fargo Has Jumbo Loans Available.

This was sent out from Ryan Dailey at Prosperity Mortgage:

Wells Fargo will now allow the following LTV's for loan amounts up to $1.5MM:



75% with a 720 credit score and 10% Post Closing Liquidity

80% with a 740 credit score and 40% Post Closing Liquidity



This means that a purchaser buying with 25% down, would need an additional 10% in reserves and a purchaser buying with 20% down, would need an additional 40% in reserves. It is very important to note, that Post Closing Liquidity or "Reserves" do NOT count retirement funds.



While this is a dramatic improvement from the previous 30% required down payment, a buyer eligible for these expanded LTVs will have to document significant non-retirement assets. The assets can include savings, investments, CDs, money market accounts, trust assets, etc. - assets that a lot of people may not want to liquidate right now, especially in this market.



This is the first "loosening" we've seen with Jumbo money, which is a great sign. Since jumbo money comes directly from the bank's balance sheet, this loosening is very telling about Wells Fargo's liquidity and appetite for risk.



So with these expanded LTV's, buyers can find, and sellers can market, financing for homes up to $2MM with 20-25% down - a definite improvement! And the jumbo rates have gradually become quite attractive --



6% for a 30 year fixed and 4.875% for a 5 year ARM.