New high-balance loan limit of $937,500 helps save deal

Mortgage advisor:

Brenda Wyatt, All California Mortgage.

Single-family residence, Leona Heights, Oakland. Conforming.

$1.125 million. $900,000.

20%.

Property type:

Loan type: Purchase price: Loan amount: Down payment: Rate: Backstory:

3%.

A Golden State Warrior executive referred colleagues to the Wyatt Team after her home purchase. She highlighted her appreciation of how available, knowledgeable and encouraging we were throughout the process.

The couple was interested in buying in Oakland. She and her husband were well-qualified and were immediately underwritten for a Jumbo loan with a competitive interest rate. The couple selected to work with Realtor and top producer Tabia Berry of Corcoran Global Living, referred by the

Golden State Warrior executive and past client. Berry discussed the current market trends and her successful strategies for submitting a winning offer in a competitive market. Once the offer was accepted, the clients moved forward with a Jumbo loan.

Lenders take a bigger risk with Jumbo home loans because they are not backed by Fannie Mae or Freddie Mac. Because of the more significant risk, Jumbo home loans sometimes have slightly higher interest rates than conforming home loans, and underwriters have more strict guidelines. A borrower’s income is heavily weighted when trying to purchase a Jumbo home loan. Most Jumbo loans require IRS tax transcript.

In this instance, IRS was extremely delayed in processing the client’s transcript, threatening our close of escrow. The Wyatt Team jumped into action, recommending the clients switch to a conforming loan.

With the new loan high balance limit of $937,000, the clients had more options. After a brief conference call, the couple was thrilled at the creativity that allowed them to close on time.

The upside of a borrower opting for a conforming loan versus a Jumbo loan is that conforming loans are usually easier to qualify for, have lower down payment options, no or limit reserve requirements, and typically lower interest rates. “Conforming” refers to loans that conform to Fannie Mae and Freddie Mac guidelines.

Not only did the clients feel the Wyatt Team was professional, knowledgeable and friendly during the process, but they also felt seen and treated as more than a transaction. In addition, they appreciated our availability and willingness to help and be patient throughout the challenges.