Several players in the mortgage industry are increasing their focus on higher loan amounts for residential home buyers as home prices continue to increase.
The median price for a home in California, for example, recently reached a new high of just over $600,000, and five counties in the Bay Area are even seeing a median home price of more than $1 million.
Given these rising home prices, it comes as no surprise that some companies are beginning to focus more on their jumbo loan offerings.
Verus Mortgage Capital, a correspondent investor that offers residential non-prime lending solutions, recently announced it increased its loan amounts to $5 million for several of its non-QM programs and higher loan-to-value ratios for interest-only loans.
Here are the programs that will see an increase in loan amounts:
- Investor Solution Full Documentation, Self Employed and Foreign National programs, from $2 million to $5 million, starting at $75,000.
- Credit-impaired borrower loans from $2 million to $5 million, starting at $100,000, through the Credit Ascent program.
- Higher-balance loans offered with alternative documentation for self-employed individuals from $3 million to $5 million, starting at $150,000 through the Prime Ascent program. Prime Ascent interest-only loan LTVs increased from 80% to 85%.
“At Verus Mortgage Capital, we’re dedicated to building the non-QM market,” VMC President Dane Smith said. “We are committed to offering lenders flexible funding options for underserved borrowers who don’t fit into the conventional profiles.”
“Right now, non-QM lending is a huge opportunity for lenders to grow their businesses and provide solutions to fill a very real void in our industry,” Smith said.
And Eave, a jumbo mortgage lender in Colorado, also announced it launched a new suite of products for home loans up to $20 million.
The products are aimed at helping home buyers avoid the need to cash out investments to win bids on houses, the company explained. Eave announced it fully underwrites buyers up front, enabling homebuyers and their real estate agents know exactly how much home they are approved for and can act with the same speed as cash buyers.