Fannie Mae released the guidelines for conforming mortgages over $417,000 (called jumbo-conforming). The guidelines can be found here.
Highlights:
Full-documentation only
660+ credit score
Single unit homes only (no duplex, triplex, 4-unit)
45% maximum debt-to-income ratio
No cash-out refinancing
75% LTV maximum for refinances (70% for declining markets–most of Southern California)
90% LTV maximum for purchase – fixed rate (85% for declining markets–most of Southern California)
80% LTV maximum for purchase – adjustable rate (75% for declining markets–most of Southern California)
The short of it is that you must have very strong income, equity and credit to qualify. Perhaps disappointing to many, but not surprising. But because these loans compete with the jumbo market, I will say there is a potential for vanilla jumbo products to improve in terms of rate and guidelines, so we’ll certainly keep an eye on that.
