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Virginia Million Mortgage
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Virginia Million Mortgage - $2MM to $30 Million Mortgage Loan financing is widely available in Virginia, including around the Washington DC metro area.Due to the large number of mortgage options, it is important to consult with a professional regarding your Virgina mortgage loan to ensure that you have a mortgage loan that is suited for your individual needs.
Great Falls in Fairfax county is a popular place for $1+ Million Mortgage loans.
Million Mortgage Loan - $1 Million Mortgage Loan to $40 Million Mortgage Loan programs are referred to in the lending industry by the terms "super jumbo mortgage" or even "mega jumbo loan"
Jumbo mortgages are loans which exceed the Fannie Mae and Freddie Mac conforming loan amount limits. This is why Jumbo loans and super jumbo mortgages are often referred to as "non-conforming" jumbo loans or super jumbo mortgages. The jumbo mortgage limits for residential properties are as follows:
2007 Fannie Mae Conforming (non - Jumbo) Loan limits are as follows:
$417,000 Single Family Residence (SFR or 1-unit, most homes fall under this category)
$533,850 Two Family Residence (Duplex or 2-unit)
$645,300 Three Family Residence (Triplex or 3-unit)
$801,950 Four Family Residence (Quadplex or 4-unit)
Properties exceeding the abovementioned conforming loan limits are considered non conforming or Jumbo, super jumbo or mega jumbo for the purposes of the lending industry.
So what does this Jumbo Loan thing mean for $1 Million to $40 Million Mortgage Applicants?
Traditional, conventional lenders can write conforming, non-jumbo loans all day with relative impunity as Fannie Mae and Freddie Mac, large public/private-type institutional investors, will buy these loans so long as they meet very basic underwriting guidelines. So its very easy to get a non-Jumbo loan.
Regular Jumbo loans, from the conforming loan limit for the respective property type to about a $1 Million mortgage loan amount, are also relatively easy to sell toother banks and typical investors, and banks undertake more risk than they would on a conforming loan but not so much that they cannot efficiently underwrite these mortgages.
Where banks and other traditional, conventional mortgage lenders fall apart is on $1 Million to $40 Million mortgages. Because the traditional mortgage loan business requires lenders to be able to find a market to sell their mortgages so they can get back more money to write more loans, these banks and conventional institutions are very hesitant to undertake large loans unless the loan to value ratios are exceptionally low (meaning you borrow 50% or less of the value of the home). By virtue of this reluctance to write $1+ Million Mortgage Loans, these same lenders have very little experience executing these transactions, resulting in even more conservative loan qualifying criteria for Super jumbo mortgages. Add to that the fact that conventional lenders are set up primarily to serve the needs of "conforming" loan customers, which means they lack the personnel to handle complex multi million dollar real estate financing, and you can see why it is so hard to get an average mortgage broker, direct lender or bank to successfully execute a $1MM to $40 Million Mortgage loan.
So Who Handles Multi Million Dollar Mortgage Loan Financing?
$1MM to $1.5 Million Mortgage loan programs have some availability in the broader markets, however $2MM to $40 Million Mortgage loan products are almost exclusively the province of super jumbo mortgage specialists. Often drawn from the investment banking and hedge fund industries, these private firms handle the overwhelming majority of real estate financing for high net worth / high income borrowers. By bypassing the traditional lenders and banks and going straight to the underlying investors on Wall Street and otherwise, these private mortgage bankers and real estate financiers are capable of orchestrating complex transactions with significantly higher loan to value ratios than would otherwise be possible. A few are even able to allow 70%, 80%, 90% and even 100% financing (no money down) on $2MM to $40+ Million Mortgage Loans, by allowing you to use income producing assets which you retain control of in lieu of a down payment.
$1MM to $40 Million Mortgage Loan programs are available to borrowers in the following states:
Million Dollar Mortgages are available for the high net worth borrowers such as, but not limited to business executives, celebrities, professional sports stars, etc.
The average interest rates on jumbo mortgages are typically greater than is normal for conforming mortgages, and vary depending on property types and mortgage amount.
Loans over a 1 million dollars or super jumbo loans may require more verifications than smaller loan amounts. The higher the loan amount the higher the risk. More reserves may be required as well as higher fico scores.
One reason lenders prefer to have a higher down payment from jumbo loan seekers is the higher risk involved. Jumbo home prices can be more subjective and not as easily sold to a mainstream borrower, therefore many lenders may require two appraisals on a jumbo mortgage loan.
Conforming Loans - Conventional home mortgages eligible for sale and delivery to either the Federal National Mortgage Association (FNMA) or the Federal Home Loan Mortgage Corporation (FHLMC). These agencies generally purchase first mortgages up to loan amounts mandated by Congressional directive
Conforming loan size limits make these mortgages unavailable to many residents of higher cost states such as California, New York, New Jersey, Connecticut, Colorado, Arizona, Nevada, Florida, Maryland, Washington DC, and Washington. Borrowers in these states increasingly require non-conforming jumbo or super jumbo loans.
Conforming loans go can be approved through a process called automated underwriting. Typically these types of loans will require a credit score of 620+ but because there is a sophisticated formula used in the computation that takes into account compensating factors like assets and cash reserves, it is wise to have your broker try to approve it thorough automated underwriting even if your score is below 620.
The other possibility is an FHA loan. The credit limitations are less stringent and the rates are often better than even conforming loans.
Conforming loans are less than $417,000. They generally have a lower rate than loans above that amount which are called non-conforming, or jumbo.
"Conforming mortgages" as they are called consists of all home mortgages that meet the underwriting requirements of the portfolio and government sponsored enterprises.
The $57,350 increase in conventional loan limits comes at an opportune time, as the interest rates have been creeping up since last August. A 30 year conforming loan at 6.25% versus a non-conforming (jumbo) loan at 6.75% would increase the monthly payment by $138.
These loans offer the best rates for borrowers. You do not need perfect credit to qualify and they also will take very high debt to income ratios, sometimes as high as 65%.
Another factor of conforming loans is a persons credit history. Government Sponsored Entities such as FNMA have credit history standards for credit depth, timely payments, trade line diversification, and risk scores.
With the use of automated underwriting, many loans that might not have been approved as a traditional conforming loan, can be approved as a conforming (A paper) loan with the assistance of compensating factors such as: low debt to income ratio's, low loan to value, low mortgage terms (10 year, 15 year, 20 year), and/or lots of verifiable liquid assets (checking, savings, mutual funds, 401k's, etc...). Any combination of these compensating factors may be what it takes to give your loan that little extra something to qualify you for that conforming rate you desire. An experienced mortgage broker will generally have the knowledge and resources to provide you with the best opportunities and automated underwriting engines available to qualify you for a conforming loan and get you the best mortgage rates available.
Conforming loans are typically what brokers refer to as A paper loans for A borrowers.
Conforming loan amount limits may change from year to year. As of 2006 the conforming loan amount limit is $417,000.00 anything over that amount is usually considered a jumbo loan.
Besides setting the Conforming Loan Limits, Fannie Mae (FNMA) and Freddie Mac (FHLMC) also limits the type of homes used as collaterals for Conforming Loans. For a loan to be Conforming (eligible for delivery to Fannie Mae and Freddie Mac), the property used to secure the mortgage has to be a Single Family Residence, 2 family, 3 family, 4 family residence, condominium, cooperative, or Planned Unit Development. Loans that are secured by Mixed-use (residential homes with a commercial unit) and properties with more than four units are considered Non-conforming.
Conforming loans are the lowest available interest rates for home financing.
Mortgages of $650,000 or more are considered super jumbo mortgages. While jumbo mortgages are only slightly more difficult to obtain than conforming mortgages, there are very few lenders and sources of funding for super jumbo mortgages. Working with a company specialized in super jumbo mortgage financing ensures that your high value refinance or purchase mortgage transaction will have a positive outcome.
Single-Family Mortgage Conforming Loan Limits effective January 1, 2006:
First mortgages
•One-family loans: $417,000
•Two-family loans: $533,850
•Three-family loans: $645,300
•Four-family loans: $801,950
One- to four- family mortgages in Alaska, Hawaii, Guam, and the U.S. Virgin Islands are 50 percent higher than the conforming limits for the rest of the country.
Conforming limits for second mortgages
•$208,500
•In Alaska, Hawaii, Guam, and the U.S. Virgin Islands: $312,750
Loan amounts higher than conforming loan limits are considered jumbo loans.
Conforming loans are easier to sell to investors.
FHA Lending in the State of Virginia - FHA mortgage loans are an excellent source of financing in the State of Virginia. FHA loans are a government insured loan that offer many unique benefits. With purchase money financing with just 2.25% down and cash-out refinancing up to 95% of the value of your home, FHA mortgage financing may be your best bet. FHA financing also allows gift funds as the down payment for purchase money transactions. Contact your mortgage professional at (800)515-8443 or via e-mail at PrivateClient@RefinanceOne.net.
If you own a mobile home on a permanent foundation in the State of Virginia you may be eligible for FHA Financing. You must own the land as well and the mobile home must been constructed after June 15, 1976. FHA financing allows for singlewide, doublewide, and triplewide financing.
FHA Loan Limits in Virginia for single family homes vary by County. The range is from $200,160 to $362,790 for a single family home as of April, 2007. Consult your mortgage professional at (800)515-8443 or e-mailPrivateClient@RefinanceOne.net for further details.
Multi-Unit financing is available through FHA with a 3% down payment and up to a 6% seller concession. There is an asset requirement of 3 months mortgage payments in reserves after closing.
FHA will allow one to use 85% of rental income to assist in qualifying income for upto 4-unit buildings. This means that if each unit is renting for $1000, then with a 4 unit building and 3 units being rented out one can add $2550 additional monthly income with which to qualify.
FHA allows for financing just 2 years after the discharge of a Chapter 7 Bankruptcy, provided you have re-established good credit. You may refinance out of a Current Chapter 13 Bankruptcy payment plan provided you have the trustee's permission, a timely mortgage history, and a timely payment history on your bankruptcy. You must have had the payment plan for at least 1 year.
Virginia Mortgage Loans ( VA Mortgage ) - There are many mortgage loan programs available in the state of Virginia. Some of the more common loan programs available for refinance or purchase are:
- 100% Financing
- 80/20 No MI
- 115% Cash Out Refinance
- First Time Home Buyer Programs
- Fannie Mae & Freddie Mac Loan Programs
- 40 Year Mortgage
- Non Conforming (Impaired Credit)
- Stated Income (No Income Verification)
- Bankruptcy Buyout
- Multi Unit Programs
Many other loan programs are available. If you have any questions about a loan program feel free to contact a mortgage consultant at (800)515-8443 or via email PrivateClient@RefinanceOne.net