By Anya Martin | The Wall Street Journal
Super Jumbo—it sounds like an action hero in a summer blockbuster. In fact, the term applies to home loans for colossal amounts—typically $2 million to $20 million and up, depending on the lender. Bigger loans might seem like a bigger risk, but many lenders see them as a sweet spot.
Qualified wealthy home buyers aren’t likely to have trouble finding financing of up to $10 million at the nation’s biggest banks, says Mike McPartland, head of investment finance for Citibank Private Bank North America.
Super-jumbo borrowers usually are already bank customers, typically of the private-bank division, which provides an array of wealth-management services, he adds. “Chances are we know the client, and we know what we are comfortable advancing to that client,” Mr. McPartland says.
