As the virus took hold, banks were staying clear of jumbo loans. But we’re seeing some positive activity now.
Boston luxury condos and jumbo mortgages making a comeback
Jumbo loans, a favorite tool of lenders to finance high-end luxury condos in Midtown and Seaport for wealthy buyers, sunk like a stone as coronavirus began impacting the economy starting in March. But there are signs that the Boston high rise condos market and jumbo loans are beginning to rebound.
Lenders shied away from those loans as a disproportionate number have entered forbearance agreements — 11.8 percent, compared to just 8.7 percent for all mortgages, the Wall Street Journal reported. Jumbos, which are not eligible for federal guarantees, exceed the limits set by the Federal Housing Finance Agency and are typically used to finance more expensive home purchases
