In order to obtain a mortgage of $465,000 or above its called a “jumbo” loan. Numerous Boston condo buyers need jumbo mortgages to purchase property. Here’s the problem:
According to The Wall Street Journal President Obama’s housing stability plan is ignoring this segment of the market, and so are lenders, few of whom are originating or refinancing jumbo mortgages. The reason: Jumbo loans are too large to be guaranteed by a government backed mortgage agency, such as Fannie Mae or Freddie Mac.
From The Wall Street Journal:
“Every single day I’m talking to people who have a jumbo loan, and I can’t do anything for them.” says Jeff Lazerson, a mortgage broker…
While total mortgage origination fell by 17% in the fourth quarter from the previous quarter jumbo origination fell by 42% to $11 billion, according to Inside Mortgage Finance….
Are you (do you know) of someone trying to obtain a jumbo loan?
Do you think that the conforming-loan limits ($465,000) are too low for Boston?