20-38

Introduction of a New Jumbo Program

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Bulletin 20-38: Introduction of a New Jumbo Program

Homebridge is pleased to announce the introduction of a Jumbo program. The Jumbo program will be available for new submissions effective July 13, 2020.

Highlights of the Jumbo program include:

  • Loan amounts up to $3,000,000 on primary residence purchase and rate/term transactions
  • Loan amounts up to $2,500,000 on primary residence cash-out
  • Purchase and rate/term investment property maximum 70% LTV/CLTV with loan amounts up to $2,000,000

NOTE:  There are no exceptions to loan amounts and any loan amount > $1,500,000 requires Homebridge management approval

  • The minimum loan amount is $501,401 for 1-unit and $1 more than the applicable conforming limit for the number of units. Refer to the FHFA website for loan limits by county
  • Minimum credit score 700, no exceptions
  • Maximum LTV/CLTV 80%
  • Purchase, rate/term and cash-out refinance transactions; cash-out ineligible on investment transactions
  • 1-4 unit primary residence and investment properties, and 1-unit second home
  • SFR, PUDs, condos (attached/detached) that are Fannie Mae warrantable, 2-4 units, and modular/prefabricated eligible
  • 2-4 units require a 5% reduction to the maximum LTV/CLTV
  • Maximum DTI (no exceptions):
    • 43% purchase and rate/term transactions
    • 38% cash-out transactions
  • Cash-out up to $250,000 with 50% LTV; up to $500,000 with ≤ $50% LTV
  • First time home buyers and non-permanent resident aliens eligible. First time home buyer subject to specific requirements if any of the borrowers on the transaction are FTHBs.
  • Reserve requirements vary between 6 to 18 months (determined by transaction type, occupancy, and loan amount). Specific requirements for a portion of the required reserve funds to be from non-retirement accounts apply:
    • Primary residence: 3 months PITIA (e.g. if 9 months reserves required, 6 months may be in retirement accounts and 3 months must be in non-retirement accounts)
    • Second home and investment: 6 months PITIA
  • Business funds are ineligible to satisfy reserve requirements
  • All derogatory credit events (BK/foreclosure/short sale/deed-in-lieu) require 7 year seasoning, no exceptions
  • 0x30 in previous 24 months mortgage/rental history required, no exceptions
  • Borrowers with a prior mortgage forbearance are eligible 6 months after the end of the forbearance period subject to specific criteria
  • Appraisal requirements are determined by loan amount and transaction type:
    • A Collateral Desktop Analysis (CDA) must be obtained for each appraisal required (including when 2 appraisals required). The cost of the CDA is $150 per CDA
    • Brokers are required to submit a check, payable to Homebridge, for $150 or 300, as applicable, to the attention of your Account Manager. Mail checks to:

Homebridge Wholesale

5 Park Plaza, 10th Floor

Irvine, CA 92614

Attn: Account Manager Name

    • Additional requirements for CDAs:
      • CDA for One Appraisal Transaction: If the value is “Indeterminate