By Lisa Prevost | The New York Times
Underwriting guidelines remain rigid on the conforming loans guaranteed by Fannie Mae and Freddie Mac, but lenders are becoming more accommodating on nonconforming, or jumbo, loans.
Over the past few months, lenders have begun approving loans for jumbo borrowers who don’t strictly meet the usual rules for, say, income documentation or credit score minimums, but can compensate for these shortfalls in other ways.
Jumbo loans are mortgages of $417,000 or higher in most areas; the nonconforming threshold is $625,500 in pricier markets like New York. Jumbos are typically issued to the most creditworthy borrowers and require higher down payments.
