So if you are choosing to refinance a Wells Fargo jumbo loan, you may have difficulty qualifying, especially if you have less than $1 million in the bank. In response, the Federal Reserve has limited the company’s growth and Wells Fargo is unable to enhance their balance sheet. In 2016, the company was involved in a scandal related to fake accounts. But Wells Fargo is also dealing with punitive measures as well. This has created financial constraints and uncertainty for many people, causing lenders large and small to be more restrictive on loans. Even the $250,000 requirement could have been restrictive to many potential buyers, but this requirement means that far more people will not be able to take advantage of the lower interest rates which are currently dominating the market.Īccording to the article, Wells Fargo is dealing with “dual pressures.” The first pressure is something all lenders and mortgage professionals are dealing with: the reduced economy created by the national response to the coronavirus.

This requirement, of course, makes attaining a Wells Fargo jumbo loan refinance far more difficult. This change came from an apparent overhaul of their existing guidelines, which made it more difficult for new customers to attain a loan while lowering barriers for their existing customers. This, says the article, is four-times the amount they were previously requesting. According to an article from CNBC, Wells Fargo, one of the largest lending institutions in the world, is now requesting that homeowners have at least $1 million in available balances if they want to refinance their current jumbo loan. Wells Fargo Jumbo Loansīecause of the challenges currently found in the lending environment, many organizations are changing their offerings to reduce risk. For specific information on jumbo loans from either company, you must contact the respective organization. The numbers cited represent to the best of our knowledge the current offerings from Wells Fargo details may have changed and as time passes the requirements will be adjusted. Note: Requirements Cited Do Not Represent an Official Offer from Wells Fargo or Cross Country Mortgageīefore we go any further, we must point out that we do not speak on behalf of Wells Fargo, and the information found in this article is based specifically on news sources, which we have linked to below. This is above the national baseline limit, but anyone who has shopped for housing in the area knows that many home are well above this amount. In San Diego, the limit for conforming loans is $701,500.

Some counties across the country have loan amounts up to $765,600.īut it’s certainly not hard to exceed that amount. What counts as a “jumbo loan” can vary depending on where you live in many places, anything over $510,400 counts as a jumbo loan, but in higher-priced regions, this number is lifted. Basically, these loans are so large that they won’t be supported by Fannie Mae and Freddie Mac. For potential buyers, this means that there are more challenges to purchasing a home, especially if you need to use a jumbo loan.Ī jumbo loan is simply a form of financing that is larger than conforming loans. There are signs that lenders will be easing these restrictions in the near future, but the tightening of restrictions, which started around March, is still present. It helps to take a moment to understand the current state of the market and examine why jumbo loans have been limited.īecause of the current state of the real estate market, many companies are not currently offering jumbo loans. So how do they compare? Let’s take a look at the two options… The Current State of the Jumbo Loan Market Many products were temporarily shuttered high-risk loans, such as jumbo loans, were limited the most.Ĭompanies like Wells Fargo and Cross Country Mortgage had to make changes, but things are steadily improving, and both are offering jumbo loans in limited forms.

When the COVID-19 crisis began spreading across the United States, prompting government officials to order the temporary shutdown of numerous offices and businesses, the real estate and lending industry was hit hard.

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