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In recent months, it has become cheaper and easier for individuals to take out jumbo mortgages – loans of $417,000 or more (or $625,000-plus in more expensive markets).

Whereas a 20% down payment and a 700 credit score used to be required on all jumbo loans, some lenders are now accepting credit scores as low as 650 and just 10% down, even foregoing mortgage insurance.

“That was unheard of 12 months ago,” John Walsh, owner of Total Mortgage Service, told CNN.

Additionally, interest rates on these loans currently average 4.24%, as compared to 4.36% on a conventional 30-year fixed mortgage.

Image via flickr/Simon Cunningham

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In the most recent Mortgage Lender Sentiment Survey conducted by Fannie Mae, the lending company found that attitudes are changing in the areas of credit standards and mortgage demand.

According to Mortgage News Daily, large lenders are set to ease up on their credit standards for mortgages, while organizations of all sizes expect to see less of a demand for mortgages in the coming month.

“Lenders’ diminished purchase mortgage demand outlook is broadly in line with the softened consumer housing sentiment seen in the August National Housing Survey results released last week,” Doug Duncan, senior vice president and chief economist at Fannie Mae, told the mortgage news site. “Historically, as lenders face a more competitive market for loan volume, it’s not uncommon to see some loosening in the lending standards; however, this time, the easing will likely be around the edges.”

Image via flickr/Marc Falardeau

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