Homepoint Deploys Jumbo ARM Loans – NMP

The nation’s third largest wholesale mortgage lender, Homepoint, has announced a new jumbo variable rate mortgage (ARM) product, Homepoint Jumbo ARM.

As interest rates continue to rise, Homepoint Jumbo ARM offers mortgage brokers one more solution to help their clients and real estate partners navigate today’s market. It offers some of the most competitive pricing in the industry on 7 and 10 year old ARMs.

ARMs continue to grow in popularity as applications hit a 14-year high in May and are three times more in demand now than they were at the start of the year, according to the Mortgage Bankers Association.

“Homebuyers today have greater interest in variable rate mortgages as they offer a solution to affordability issues caused by the recent increase in interest rates,” said Phil Shoemaker, president of the montages at Homepoint. “With Homepoint Jumbo ARM, independent loan originators can offer their customers greater purchasing power and the ability to win in today’s highly competitive purchasing 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 buying market, the company said. Its jumbo offering also includes Jumbo AUS, which gives borrowers a stress-free approval process, he said.

Program details for Jumbo ARM:

  • Available for loan amounts above agency-compliant loan limits.
  • Initial fixed rate over 7 or 10 years: ARM 7/6 months, ARM 10/6 months.
  • 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 IM required.
  • Available in main residences (1-2 apartments) and secondary residences (1 apartment).
  • Cashout amounts up to $500,000.
  • Manual subscription.
  • Independent borrowers are eligible.
  • Maximum DTI: 43% for the main residence and 40% for the secondary residence.

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