Sales of California homes at all price levels increased 16.9% last year, to 460,166 from 393,703 in 2008. However, sales of California homes priced at $1 million or more tumbled for a fourth consecutive year in 2009. The number of million-plus homes sold dropped 23.8% to 18,621 in 2009 from 24,436 in 2008.
Many buyers are under the impression that Jumbo financing is not available because of these statistics. That is about to change. We just heard today that Bank of America, working in conjunction with their financial services division leader, Merrill Lynch, has recently increased their standard loan program guidelines from $3 Million to $5 Million. In conjunction with their wealth management division leader, U.S. Trust, are offering loans to $10 Million for high net worth clients.
These changes are a welcomed relief for the housing industry where it seems more lenders are pulling back rather than expanding. The loan-to-value guidelines under the standard program are as follows:
80% to $2,000,000
70% to $3,000,000
65% to $5,000,000
Tim Lorenz
Instant MLS Listings & Free Market Analysis
"We have actually closed many short sales!"
949-282-2521
Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!
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