Jumbo loan investors are beginning to loosen a little on their underwriting guidelines, according to the president of Toll Brothers Inc. Mortgage.
Since refinancing have dropped off, “we have seen investors get more aggressive in trying to do business with us,” said TBI Mortgage president Don Salmon.
“We are seeing more people come out with a little bit better LTVs that we haven’t seen in a while,” he said during a conference call Wednesday on
However, Salmon noted that 18% of Toll Brothers customers pay all cash and only 8% use FHA and VA financing.
The other luxury homebuyers generally put down a 30% downpayment and take out a 70% LTV mortgage.
He noted TBI Mortgage has always had the ability to do a 12-month rate lock on conforming mortgages but not jumbos. “Today we can do a six-month lock on a jumbo loan,” he said. “We fully expect that go to nine months in very short order.”
