Jumbo Mortgage Question

[Tingnting]

Hi All,

Have been reading these forums for quite a while and have a question situation that we need some advice on.  

We just sold our house and are looking for a new home, which is proving pretty difficult without going into the jumbo mortgage range (417k conventional limit in our area). We have a 200K income plus bonus and have recently paid off all CC's. Additional debt is about 2k per mo. Fico scores are in my signature. 

The issue...in 2010 we pursued a mortgage mod (company was selling our business and I had a lot of job uncertainty...and much less income). The mod went haywire and the bank hit us with a foreclose lis pendens. We paid the back mortgage and fees and got currrent and remained current for over 2 years. Originally we started looking for a new home and when we had our credit pulled, the Foreclosure initiated notation on our credit report put everything at a stand still. We contacted our lender and got them to remove all lates and mortgage foreclosure notes except for a single 30, 60, and 90 almost 3 years ago.   Beyond that we have a couple of 30 day lates for credit cards (latest in 2010)

Question,   Can we reasonably expect an approval on a jumbo with a decent rate.  BTW, we plan to put down 20%.  

[JM-AM]

Few things going against you.

First what is considered a decent rate to you?

Jumbo loan rates are already consider higher rates.

The mortgage payments being changed to late payment several years back should not cause the issues. Depending on whats found in public records as far as the foreclosure may play a part of the decision process. But they may find nothing.

Your scores are a little low for the best tier rates as of right now. Lowest I have seen as of lately for best tier rates has been a 720, and most have been more 740+ mid scores.

Do you still own the house? Is the house paid off if you still own it? Do you plan to sell the house? Do you plan to rent the house?

[Tingnting]

Hi JM,

We sold the house recently.   We are currently renting while we are searching for a new house.   We are hoping from a rate under 4%. Since we were only under the pre-foreclosure, it doesn't appear to show in any public records, at least not according to any of the credit reports I have run.

[JM-AM]

What is the price of the house you are looking at?

Also state and city?

[Tingnting]

No specific house yet, but we are in south florida (broward county) and looking at low to mid 600's

[rehr22]

How do I learn what constitutes a jumbo mortgage in the areas I will be looking to buy?

[Tingnting]

http://ficoforums.myfico.com/t5/Mortgage-Loans/Evaluating-Conventional-vs-FHA-VA-amp-USDA/td-p/69616...

good info in the above post, but basically any mortgage over the conforming limit for your county and state. 

[rehr22]

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@Tingnting wrote:

http://ficoforums.myfico.com/t5/Mortgage-Loans/Evaluating-Conventional-vs-FHA-VA-amp-USDA/td-p/69616...

good info in the abve post, but basically any mortgage over the conforming limit for your county and state. 

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Perfect, thanks.

[JM-AM]

Some lenders offer incentives to acheive lower rates, by having accounts with them, having automatic withdrawal of funds for mortgage payment, 25% downpayment, and top tier scores (varies by lender).

I was gonna say maybe try FHA jumbo loan, but Broward County only goes as high as $423750.

I think you may have a chance for just under 4%, if you can apply some of the incentives some Lenders offer.

Try Wells Fargo as they had a few incentives and a rate of 3.75 for jumbo loans at the time I looked last, about a week ago or so.

[Tingnting]

Thanks JM,

Wells is my bank, so I will give them a try.  Unfortunately sellers seem to treat offers with Wells financing as worthless around here.