Home Buying in Mercer Island>Question Details

Mark,  in Harrison, NY

what credit score do you need to get the most favorable rate on a jumbo loan -- assume 30% dow?

Asked by Mark, Harrison, NY Mon Oct 18, 2010

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Keep in mind that Mark is asking for a jumbo loan, so he is not getting the adjustments for credit score that are the Fannie/Freddie overlays. Most likely this is going to be a portfolio loan, which means that the lender will hold your loan, and not sell it off. In addition, I am not sure who would say that a 780 credit scores allows someone to obtain a better rate, because that is not true. There had been a few lenders 2 or 3 years ago that had a bonus for that, but as long as you don't plan to live in your car, where you can get 0% financing if you have a 780 credit score, it is 740, as others have said.
1 vote Thank Flag Link Tue Oct 19, 2010
740 but the other things outside of the score come into play as well.
0 votes Thank Flag Link Tue Oct 19, 2010
>740 score is needed for best possible rates and program choices
0 votes Thank Flag Link Tue Oct 19, 2010
740 and up is what you will need on Jumbo these days.
0 votes Thank Flag Link Tue Oct 19, 2010

740 or above usually will put you in top tier.

Good Luck!

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Gerard Dunn
Associate Broker
Licensed in Maryland, Virginia and Washington, D.C.

Assisting Homebuyer's and Seller's for 28 years
0 votes Thank Flag Link Tue Oct 19, 2010
I was told by several experienced mortgage lenders that the top tier is over 780, but other conditions are factored in also, like credit cards, amount of debt or lack thereof. The process seems to be getting more complicated all the time. My advice is to talk to savings banks who are portfolio lenders, that is, they are lending their own money. They will have less secondary market underwriting restrictions and red tape imposed on their clients. And many of them loan up to $1 million without raising their rates.

Shop the local savings banks. Start with the bank you use. Sometimes that helps also. Ask if they sell the loan, or if they keep it before you apply. Don't pay points.
0 votes Thank Flag Link Mon Oct 18, 2010
At least 720 with sufficient income and acceptable expenses to income ratio. Is or will this be a primary home?
0 votes Thank Flag Link Mon Oct 18, 2010
Hi Mark,
I'm a licensed lender and Realtor. Credit Scores of 740 or higher receive the most favorable terms with most of my lenders, but it depends on the program and the rest of the file. You may do just as well at 720 on some programs. I hope this helps. If you need additional information, feel free to write or call.
0 votes Thank Flag Link Mon Oct 18, 2010
Highly suggest contacting a qualified mortgage broker in your local area. It seems that lenders who "portfolio" their loans are the most proficient and you get the best rates. Of course, they all have specific information you will need to provide to qualify. Good luck
Web Reference: http://www.loanREDI.com
0 votes Thank Flag Link Mon Oct 18, 2010
That depends on the size of the loan. Seeing as you posted this under Washington State, what is the size of loan that you need. Some of the better jumbo financing is local, so you may want someone from that area to respond. Keane Ng is from Washington St., and often posts on Trulia. he is very knowledgeable it seems from his answers.
0 votes Thank Flag Link Mon Oct 18, 2010
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