With homeowning percentages down to the 1965 level of America’s overall residential market, the U.S. leading banks are substantially easing qualification for “jumbo loans,” large home loans in the range of $417,000 in most parts of the country, or $625,000 in major metropolitan urban centers. Last year, such loans accounted for about 20% of all first lien mortgages. They are primarily used to purchase or refinance larger homes. So far this year, these mortgages have been up 5.5% from 2009, and comprise a major focus of home mortgage investment.
This upward trend has led to such leading financial institutions as J. P. Morgan/Chase, Bank of America and Wells Fargo to consider easing the minimum FICO credit scores. These are required indexes but have been reduced to 680 from 740 for loans on primary single-family purchases and second homes — for those indicating the financial means to sustain these mortgages.