What About Loans for Homes above $450K?

A friend was wondering about loans for larger homes...When researching what loans are available for homes above conforming limits (any loans above $417,000 per Fannie Mae requirements), I found the rate and closing costs are higher than for conforming loans, but the money is still available.

Here is the scoop, per one of my favorite lenders, Bernie Zanoni of Briston Capital Mortgage:
There are only a few lenders willing to lend above the conforming limits. So we have higher interest rates and higher closing costs on the now tougher to get jumbo loans. So here it is in a nut shell - 10% down on loan limits up to $650k and the rate is a couple of points higher than conforming loans on a 30 year fixed loan with 5 points up front! The next best loan is a 20% down jumbo loan up to 1 million with rates a couple of points higher than conforming loans with regular closing costs and just 1% origination. (Lower costs for more money down...)

So here is the best way to work with things. For 15% down you can use a 1st mortgage up to 417k and use a 2nd mortgage for the balance. Both of these rates would be on the higher range or normal conforming loans. This combination would have normal closing costs and only 1% origination fee on each of the loans. There is a cap on the max loan amount of the 2nd mortgage (HELOC) of $250k depending on credit.

If you want more details, let me know and I'll put you in touch with Bernie!