AD Mortgage
  • Programs
  • Quick Pricer
  • Loan Tools
    • block1
      • Programs
        Loan solutions for every need
      • Concierge Service
        Bank Statements calculations
      • Partner Portal
        AIM Partner Portal 
      • A&D Appraisal Center
        Appraisal ordering platform
      • Loan Calculator
        Instant Quick Pricer
      • Partner Support
        Live support by dedicated team
    • block2
      • Turnaround Times
        Best turn times in the industry 
      • Documents & Forms
        Loan level forms
      • Guidelines
        Guidelines and matrices
      • Announ­cements
        FEMA Announcements
  • Growth & Learning
    • GROWTH TOOLS
      • Loyalty Program
        ADvantage Loyalty Program 
      • LEADer CRM
        Free CRM and marketing tool 
      • A&D Studio
        Customized product flyers
      • Events & Webinars
        Trade shows and events
    • LEARNING
      • A&D Learning Center
        Guides and tutorials
      • Webinars
        Webinar recordings
      • Blog
        Mortgage trending topics 
  • Correspondent
  • My Mortgage
  • About Us
    • About A&D
      Our management and history
    • Awards
      Our awards
    • Testimonials
      What partners say about us
    • Career
      Career with A&D
    • Associations
      Association membership 
    • Blog
      Mortgage trending topics 
    • Press about A&D
      Media about us
    • Contacts
      Contact us
855-235-6267 Support
AIM Partner Portal
Support
AIM Partner Portal
Become a Partner
AD Mortgage
Blog

Lending Options to Combat Rising Rates, Escalating Home Prices

June 16, 2022
Lending Options to Combat Rising Rates, Escalating Home Prices
Post content:
  • The Affordability Issue
  • Conventional Loans
  • Jumbo Loans
  • A&D Mortgage Loan Programs

By Max Slyusarchuk, CEO and Founder of A&D Mortgage

(Hollywood, FL) — Despite the recent rise in mortgage rates, strong demand and tight inventories continue to fuel a rise in home prices that require lending solutions with higher loan amounts. Although Non-QM loans can offer larger loan amounts to cover these areas, for those borrowers with good credit and payment histories, Conventional and Jumbo loans will normally offer lower rates – a key deciding factor, even more so as rates keep fluctuating.

The Affordability Issue

According to the S&P CoreLogic Case Shiller index, home prices across the nation rose no sign yet of prices abating. Phoenix, Tampa, and Miami had the highest annual price increases, at 32.6%, 30.8%, and 28.1%, respectively, and 16 of the 20 cities in the S&P CoreLogic national survey registered higher prices year over year.

According to Zillow, the average price of a home in the United States is expected to top $375,000 in 2022. In several regions of the country, prices of homes are significantly higher, which means buyers require larger loan amounts to finance their purchases.

Depending on the asking price, buyers with good credit and payment histories may consider Conventional or Jumbo loans to purchase their home. Both loan types require homeowners to meet certain eligibility requirements including minimum credit scores, income thresholds, repayment ability, and down payments. Furthermore, each type is also issued and underwritten by lenders in the private sector. Though they may serve the same purpose — to secure a property — these products have several key differences that need to be considered.

Conventional Loans

Conventional mortgages are any mortgages that are not backed by the federal government; typically, private lenders such as banks, mortgage companies, and credit unions offer them as either conforming or non-conforming. Conforming loans adhere to Fannie Mae and Freddie Mac’s strict underwriting guidelines and the Federal Housing Finance Agency’s size limits. However, a non-conforming loan is one that does not meet the guidelines established by Government Sponsored Enterprises (GSEs).

The FHFA annually sets the maximum limits for conforming conventional loans to keep pace with increasing home prices, and it was increased in early 2022 for single-unit dwellings to $647,200. However, the agency recognizes that some areas are more expensive and has designated up to 200 U.S. counties this year for loan limits up to $970,800.

Naturally, these conforming conventional loan limits determine how much a client can borrow on the purchase of a home; but once the purchase price exceeds the loan limits, borrowers need to find alternatives. A major advantage of Conventional loans is low down payments, but they come with additional costs in the form of mortgage insurance – which can be paid upfront or in monthly premiums — to offset the risks lenders face should borrowers with LTVs over 80% default.

Typically, borrowers must have the following to qualify for conforming loans:

  • Fair Credit – A minimum FICO of 620 is expected
  • DTI Ratio, but some lenders can go up to 50%
  • Down Payment – At least 3% or up to 20% of the home’s value

Jumbo Loans

Jumbo mortgages are essentially loans intended for pricier properties. These loans typically involve big sums – starting around $650,000 and often running into the millions. Luxury homes found in highly competitive real estate markets are generally financed via jumbo mortgages.

Jumbo loans are non-conforming, thus falling outside of FHFA’s restrictions on loan sizes, geography, or property values. This is significant because, as a result, jumbo loans are precluded from receiving financial backing by Fannie Mae or Freddie Mac.  Jumbo loans also don’t require mortgage insurance if the LTVs exceed 80%.

Typically, all conforming loans can be packaged and sold to either Fannie Mae or Freddie Mac. In doing so, the risk to the lender is reduced with a guarantee form the agencies. However, non-conforming loans cannot be sold to those federal agencies and therefore, a lender’s risk is increased, and that increased risk will be reflected in the terms of the loan.

In order to qualify for a jumbo loan, borrowers typically must have:

  • Excellent Credit
  • DTI Ratio – 36-43%
  • Down Payment – 10-20%
  • Cash Reserves Needed – Up to 12 months’ of homeownership expenses
  • Maximum Loan-to-Value Ratio – 90% or less

A&D Mortgage Loan Programs

As a Direct Lender, A&D Mortgage offers a wide range of Conventional, Jumbo, and high-limit Non-QM loan options to service those borrowers who have good credit and payment histories looking for more expensive homes or real-estate investments. Great pricing, easy-to-use technology, fast turn times and knowledgeable teams who provide superior service are all factors that clients and brokers should consider when selecting a Conventional or Jumbo lender – all of which A&D possesses.

For more information about A&D Mortgage, visit admortgage.com.

A&D Mortgage LLC is an Equal Housing Lender. NMLS ID #958660. 1040 South Federal Highway, Hollywood, FL 33020. For important disclosures and state licensing information: https://admortgage.com/important-disclosures/

author Max Slyusarchuk

Written by

Max Slyusarchuk

CEO

  • linkedin
  • email
Max Slyusarchuk is CEO at A&D with over 20 years of mortgage and banking industry experience. He supervises all day-to-day activities and is responsible for business development and maintaining relationships with key partners. Mr. Slyusarchuk has raised capital and launched multiple projects across a wide spectrum of industries, including the financial and construction sectors. He has experience in both private equity investments and portfolio management for institutional and private sector clients in US and Europe. Mr. Slyusarchuk holds a BS in Economics from MIM University.
  • linkedin
  • email

Get the latest updates on our loan solutions, webinars, tradeshows, events, and more!

Your email Fill out this field
Thank you, you're successfully subscribed! Please confirm your subscription in your email.

Get the latest updates on our loan solutions, webinars, tradeshows, events, and more!

Your email Fill out this field
Thank you, you're successfully subscribed! Please confirm your subscription in your email.
Post content:
  • The Affordability Issue
  • Conventional Loans
  • Jumbo Loans
  • A&D Mortgage Loan Programs

Share this article

Read more

A&D Mortgage Launches New FHA Loans Features
June 04, 2025

A&D Mortgage Launches New FHA Loans Features

A&D Mortgage Adjusts to Changing FHA Guidelines
May 20, 2025

A&D Mortgage Adjusts to Changing FHA Guidelines

A&D Mortgage’s 20 Years of Yes Celebration Continues with Price Reduction
May 07, 2025

A&D Mortgage’s 20 Years of Yes Celebration Continues with Price Reduction

Read more

Get 10 ready-to-use email templates!

New deals, better retention, and smoother ops with a simple copy + paste!

First Name *

Fill out this field

Last Name *

Fill out this field

Email *

Fill out this field

State *

Fill out this field
Please, accept the privacy policy
success

Thank you!

Click on the button below to download the checklist.

Download now
error

Oops

Something went wrong

Try again
loading
A&D mortgage footer logo

Weekdays 8 am to 9 pm EST

  • (704) 444-0877
  • partnersupport@admortgage.com
  • Partner Support
All Contacts
Policies
  • Website Accessibility
  • Privacy Policy
  • Notice at Collection for CA Residents
  • Important Disclosures
  • Heter Iska
Events
  • Events & Webinars
Career
  • Career Center
  • Available Positions
  • Employee Referral Program (PDF)
Borrower info
  • My Mortgage
  • Retention / Covid 19 Assistance
  • Mortgage Glossary
Feedback
  • Got an Idea? Let us know!
  • Leave your feedback

899 W Cypress Creek Rd, Fort Lauderdale, FL 33309

NMLS # 958660 — NMLS Consumer Access

2025 © A&D Mortgage LLC

Your email

Fill out this field
Thank you, you're successfully subscribed