Exorbitant home prices in California has boosted demand for jumbo loans in the Golden State, The Wall Street Journal reports.
The median home price in San Francisco has passed the million mark, and it’s nearing half a million in Los Angeles. Unless buyers can make a substantial down payment for a Fannie Mae, Freddie Mac, or FHA loan, the only option for many will be taking out a jumbo loan.
“California is by far the biggest lending state when it comes to jumbo mortgages—both in dollar amount and number of loans,” Guy Cecala, publisher of Inside Mortgage Finance, which covers the industry, tells The Wall Street Journal.
