The standards for second-home purchases requiring a jumbo loan have also eased to a 680 credit score and a 20% down payment. Buyers used to have to put down 30% to 50%.
The bank claims it’s the only lender allowing a 680 credit score with smaller down payments for primary and second home jumbo mortgages.
Loose lending practices helped bring down the housing market in 2008. In the wake of the Great Recession, credit markets froze and the mortgage industry upped their loan requirements.
While the standards have started to loosen, mortgage availability remains relatively tight and first-time buyers have been noticeably absent.