Jumbo Loans Are Back in San Diego!

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Jumbo loans are back in San Diego! I was talking to a contact at one of the large banks this week. He said in the last six months, San Diego has moved from a market classification of the greatest risk to a classification of the least risk for the lender. Does this mean prices of San Diego luxury homes have fallen to an appetizing level? There are plenty of buyers who have been waiting on the sidelines to make an offer but have not been able to get financing. The lender I talked to this week is offering jumbo loans (loans of $729,750 or more) with 20% down. This is great news for the San Diego real estate market.  Until recently many lenders had been only doing jumbos with down payments of 25% or more, if at all. And the current jumbo mortgage rates are pretty unbelievable too! This week he quoted me 5.5%! With prices down, this is a great time for buyers to again consider exploring the luxury homes market in San Diego.