Are You a Million Dollar First Time Buyer?
Recently, a newly “engaged” couple for a loan approached me because their loan had been declined by another lender; for reasons unknown at the time. They were six months away from getting married and they found the perfect home that they wanted to buy and wanted to celebrate their wedding day ceremony at their new home purchase address.So what’s the problem? They had great credit, more than adequate assets; job and income stability. Read more…
San Diego Housing and Jumbo Loans
Living in San Diego, you run across many different types of home buyers and in this case; I just happen to run across a couple buying their first home: for 1.5 Million dollars. They were more than qualified in income, assets and credit, however, there is a little known loan requirement that I ran across for people who are buying their first home together for that certain price range. It appears that some banks have a “first time buyer loan imit”.In this case, my buyers were putting 25% down on a $1.5 M home purchase and their new loan amount was going to be $1.1 M. As I did the research, I discovered that this lender’s maximum loan limit was $1M for first time buyers. Jumbo Loans have a first time buyer loan limit?
First Time Buyer Defined
One comment I would like to make perfectly clear; not all lenders measure the “first time buyer status ”by the same measuring stick”. In this particular case, I discovered that this Jumbo lender (Loans Over $550K in Southern California) treated the first time borrower status as a qualified borrower who has not owned a home within the past 3 years and does not show a mortgage rating on their credit report within that specified period of time. My client’s had not owned a property in the United States within the 3 year time period, however, it was documented that one of the individuals had owned a condo outside of the US; which did not apply.
Jumbo Loans and Your Qualifications
Make sure you do your homework while selecting the right loan program, rate and terms with you previous home ownership record. In this example, I was able to save valuable time and ultimately money for my client’s by making them aware of which lenders have this particular loan limit for first time buyer status. There is nothing more embarrassing and inconvenient by being delayed with this scenario and most Loan Officers are not aware of the loan limit; especially in California where higher loan limits and Jumbo Loan guidelines apply.
Loan Officer 911 to the Rescue
If you have a question about your Loan Officer and need a second opinion about your loan qualifications; ask Loan Officer 911 and send us an email at: Rj@LO911.com