Lenders easing rules to help borrowers land jumbo mortgages

Traditional requirements for loan approval seen as "overly onerous"

New York /
May.May 30, 2014 11:02 AM

Lenders are loosening the rules when it comes to giving out jumbo mortgages, or home loans that total $417,000 or higher. Traditionally, such loans are only offered to the most creditworthy of borrowers.

But now, jumbo mortgages are being approved for borrowers who likely would not have qualified for one in the past. Peter Grabel, a senior loan originator with Luxury Mortgage in Stamford, Conn., told the New York Times that lenders have become more willing to count capital gains from stock as income, if borrowers show a consistent pattern of cashing them in.

In New York, where home loans of $625,000 or higher fall into the jumbo category, lenders are helping borrowers finance buildings that are “nonwarrantable” or ineligible for backing by Fannie Mae.

Grabel says that the easing of the requirements for jumbo loans is “not wild and crazy.” He noted that some of the existing rules governing the loans might be “overly onerous.” [NYT] — Claire Moses


Related Articles

arrow_forward_ios
A photo illustration of a crystal ball predicting future home prices (iStock)
Home sales, building to slow: Fannie Mae
Home sales, building to slow: Fannie Mae
1277 East 14th Street, 45-57 Davis Street and 575 Grand Street (StreetEasy, Google Maps, iStock)
Mighty Midwood bookends top outer-borough loans
Mighty Midwood bookends top outer-borough loans
Baruch Singer with 1508 Coney Island Avenue (Schnakel) Midwood, 92M
Humdinger: Baruch Singer lands $92M for Midwood spec office
Humdinger: Baruch Singer lands $92M for Midwood spec office
 Extell’s Gary Barnett with Times Square Hard Rock Hotel (iStock)
Gary Barnett’s Extell repeats as Manhattan’s top borrower
Gary Barnett’s Extell repeats as Manhattan’s top borrower
A photo illustration including a rendering of Third at Bankside in Mott Haven (top left), the Cunningham apartment complex in Queens Village (bottom left), and 47-05 Center Boulevard in Long Island City (right) (Google Maps, LoopNet, iStock)
Brookfield’s $438M Bronx deal tops outer-borough loans
Brookfield’s $438M Bronx deal tops outer-borough loans
Slate Property Group's David Schwartz and Martin Nussbaum, Lam Group's John Lam and rendering of Victoria Tower (Slate Property Group, Lam Group, Aufgang Architects, Apollo Theatre)
Lam Group scores $168M for Apollo Theater residential project
Lam Group scores $168M for Apollo Theater residential project
(Loopnet, iStock, Google Maps)
Bronx nabbed February’s biggest outer-boro property loans
Bronx nabbed February’s biggest outer-boro property loans
(Extell, Ritz Carlton, Gryffindor, CC BY-SA 3.0, via Wikimedia Commons)
Bank OZK dominated Manhattan’s top real estate loans in February
Bank OZK dominated Manhattan’s top real estate loans in February
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...