Thirty-year jumbos a tougher sell?

If you're a business owner looking for a 30-year home mortgage loan of more than $417,000 — a “jumbo” — be prepared to have your documentation ready. Otherwise, a jumbo with a three- or five-year adjustable rate might be the better option.

That's the message from Insignia Bank CEO Charlie Brown, after a May meeting of the Federal Deposit Insurance Corporation's Advisory Committee on Community Banking. “There was discussion at the FDIC meeting that the secondary mortgage market ... is in a great deal of turmoil right now,” says Brown, a committee member.

A jumbo borrower, says Brown, may need to provide 12 bank statements from two accounts plus source documents on other deposits and tax return information. Then, Brown says, that could lead to 10 or 12 information requests after the borrower applies for the loan.