Is a Jumbo Mortgage needed in Maui?

Jumbo Loans in Maui are on a Comeback!
Looking to buy a Luxury Home on Maui?
Contact Howard Dinits R(B) Dinits Realty in Hawaii

Howard Dinits Maui Luxury Real Estate Specialist
877-434-6487 or 808-874-0600 howard@howarddinits.com

I have had several buyer clients ask me. When is a Jumbo Loan needed?

Answer: If the loan amount exceeds $679,650.

Hawaii
County GSE 1-unit limit FHA 1-unit limit
Hawaii $679,650 $368,000
Honolulu $721,050 $721,050
Kalawao $679,650 $657,800
Kauai $713,000 $713,000
Maui $679,650 $657,800

As mortgage rates begin to go up the difference between conforming and Jumbo rates is shrinking and that is excellent news for buyers of higher priced homes in the Kihei, Wailea and Makena areas.

Conforming loans are mostly financed by Fannie Mae and Freddie Mac. Jumbo loans are usually higher than $679,650 and are funded by private investors or banks. The difference between jumbo loans and conforming loans regarding rates was as wide as .875% the previous summer. As of last week, the Mortgage Bankers Association reported the spread to be under a .25%. So why is the conforming versus jumbo loan spread decreasing? Not because jumbo rates are dropping but because conforming rates are rising.  Increased government intervention has caused the increased rates.

With limited inventory available in Maui especially Kahana, Kapalua, Kihei and Wailea the prices are on the rise.  As a result luxury buyers are back, the jumbo market is heating up. Although jumbo loans have tighter guidelines than conforming such as increased reserve requirements, they are becoming easier to obtain and will likely get cheaper as more and more investors are willing to purchase as mortgage back securities.

This is excellent news for seller’s of the higher priced Hawaii real estate which has been limited because of lack of available credit for Maui Buyers.

Looking for a jumbo loan to buy a House in Maui?

Jumbo Loan Jumbo Mortgage Hawaii Maui Kihei Wailea Makena

Hawaii
County GSE 1-unit limit FHA 1-unit limit
Hawaii $679,650 $368,000
Honolulu $721,050 $721,050
Kalawao $679,650 $657,800
Kauai $713,000 $713,000
Maui $679,650 $657,800

keywords jumbo mortgage, mortgage, loans, loan, jumbo loan, hawaii, maui, kihei, wailea, $679,650

Looking to buy a Luxury Home?
Contact Howard Dinits R(B) Top 100 Agent in Hawaii
877-434-6487 or 808-874-0600 howard@howarddinits.com
Dinits Realty

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