Parkside Lending expanded its jumbo product offerings to go to 95% LTV without mortgage insurance as demand for jumbo mortgages grows in the market.
The San Francisco-based wholesale and correspondent lender created the new offering to help creditworthy borrowers with a down payment or equity as low as 5% fit into a traditional jumbo loan.
“We believe our new Jumbo loan offering is an important financing alternative for a specific segment of creditworthy borrowers,” said James Lamparter, executive vice president of sales at Parkside Lending. “We continue to grow our Jumbo product line as we identify different needs in the marketplace.”
Parkside noted that it will go to 95% LTV/CLTV on loan amounts up to $1 million without mortgage insurance on a 1 unit, owner occupied purchase or rate and term refinance.
Features of the product include:
- An alternative to high balance loans (minimum loan amount: $417,001)
- 740 minimum credit score
- 24 months reserves (borrower’s own funds)
- 35% maximum DTI
- Minimum down payment of 5% (borrower’s own funds)
Parkside Lending also offers jumbo loans on non-owner occupied transactions, and will go to 65% LTV/CLTV, 1-4 units.
This isn’t the first step the lender has taken this year to better supports its clients. Back in May, it announced that it would begin offering Federal Housing Administration-backed mortgages.
Jumbo loan demand has been steadily growing, with the Mortgage Bankers Association reporting in April that applications for some jumbo loan sizes increased in 2014, mainly in the $417,000 to $625,000 range and in the greater than $729,000 range.
Earlier this month, Chase, the U.S. consumer and commercial banking business of JPMorgan Chase (JPM), similarly changed the requirements on its jumbo loan products to better match its peers in the market. A buyer with a FICO of 680 or higher looking to purchase a single-family property can now put as little as 15% down.