Homepoint Rolls Out Jumbo ARM Loans
Homepoint's Jumbo ARM is a strategic addition to the company’s expanding jumbo portfolio.
- ARMs are continuing to rise in popularity as applications increased to a 14-year high this May and are three times more in demand now than they were at the beginning of the year.
- Homepoint's Jumbo ARM is a strategic addition to the company’s expanding jumbo portfolio, relaunched earlier this year to give mortgage brokers a boost in the competitive purchase market.
- It offers some of the industry’s most competitive pricing on 7-year and 10-year adjustable-rate mortgages.
The nation’s third-largest wholesale mortgage lender, Homepoint, announced a new jumbo adjustable-rate mortgage (ARM) product, Homepoint Jumbo ARM.
As interest rates continue to rise, Homepoint Jumbo ARM gives mortgage brokers one more solution for helping their customers and real estate partners navigate the current market. It offers some of the industry’s most competitive pricing on 7-year and 10-year ARMs.
ARMs continue to rise in popularity as applications increased to a 14-year high this May and are three times more in demand now than they were at the beginning of the year, according to the Mortgage Bankers Association.
“Homebuyers today have a stronger interest in adjustable-rate mortgages because they provide a solution to affordability issues caused by the recent increase in interest rates,” said Phil Shoemaker, president of originations at Homepoint. “With Homepoint Jumbo ARM, independent loan originators can provide their customers with more buying power and the ability to win in today’s highly competitive purchase market.”
Homepoint Jumbo ARM is a strategic addition to the company’s expanding jumbo portfolio, relaunched earlier this year to give mortgage brokers a boost in the competitive purchase market, the company said. Its jumbo offering also includes Jumbo AUS, which provides borrowers with a no-stress approval process, it said.
Program Details For Jumbo ARM:
- Offered for loan amounts greater than agency conforming loan limits.
- Initial fixed-rate for 7 or 10 years: 7/6 month ARM, 10/6 month ARM.
- Reset period: Every 6 months after the initial fixed-rate expires.
- Maximum loan amount of $2.5 million.
- Maximum LTV of 80%; 70% up to $2.5 million.
- Minimum FICO: 700.
- No M.I. required.
- Available on primary (1-2 units) and second homes (1 unit).
- Cash-out amounts up to $500,000.
- Manually underwritten.
- Self-employed borrowers are eligible.
- Maximum DTI: 43% for primary and 40% for second home.