Lender widens offerings as adjustable-rate mortgages reach highest share of mortgage apps since 2023
Dart Bank Wholesale Lending has introduced a new lineup of jumbo adjustable-rate mortgage (ARM) products, adding 5/6, 7/6, and 10/6 ARM terms to its offerings.
The new programs are targeted toward mortgage brokers serving borrowers looking for rate flexibility and lower initial monthly payments.
The ARM loans are available for amounts between $350,000 and $2 million, with a maximum loan-to-value (LTV) of 80%, a minimum FICO score of 700, and a maximum debt-to-income (DTI) ratio of 43% on primary residences. The products also allow cash-out refinances up to $2 million for primary homes and are open to self-employed borrowers. New York properties are eligible at $1 over the conforming county loan limit.
More borrowers are exploring flexible non-fixed-rate loans at a time when the first wave of pandemic-era ARM loans reach their adjustment periods.
Read more: Clamor for adjustable-rate mortgages surges, offering brokers another tool to unlock market
The Mortgage Bankers Association (MBA) reported the ARM share of new mortgage applications reached 9.6%, the highest since November 2023. MBA also noted a 6.6% increase in jumbo credit availability, marking the highest level of jumbo access in five years.
“The credit supply growth was primarily in conventional programs, with jumbo availability at its highest in five years. Government credit availability was essentially unchanged over the month. Additionally, non-QM credit availability continues to grow,” MBA deputy chief economist Joel Kan said in the report.
Dart Bank Wholesale previously rolled out a fixed-rate jumbo loan program with limits up to $3 million, and the addition of ARM options provides further product flexibility as rate sensitivity remains high in the market.
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