Thanks for visiting The Mortgage Reports. To stay absolutely current on mortgage markets and important guideline changes, be sure to take my free daily email alerts.

Among the most overlooked elements of the recently-passed stimulus package is the reinstatement of 2008's conforming loan limits. 

Up from $625,500 to $729,750, homeowners in high-cost areas have a better chance of accessing today's low mortgage rates and that is good for both housing and the economy.

Areas designated as high-cost, though, are categorized as such for a reason.

Despite the hundred-thousand-dollar increase to conforming loan limits, there are still plenty of American homeowners in high-cost areas whose home loans remain too big for Fannie Mae to insure. Traditionally, we've called these out-sized loans "jumbo mortgages", or "super-jumbo mortgages".

Over the past few years, jumbo mortgages were bought and securitized by investment banks, hedge funds and other financial firms.  This helped keep rates low. 

Today, however, and as anybody shopping for a jumbo loan can attest, the dearth of both private and public investors has made getting an out-sized loan an extremely expensive proposition.  Rates on jumbo mortgages have been downright awful compared to its conforming-mortgage cousin.  Not to mention significantly higher loan fees.

Thankfully, there is a choice -- it's just not one you may have thought of.

See, the terms "jumbo" and "super jumbo" -- these are words used to describe Wall Street-bound loans and if we look beyond Wall Street, we find local banks that are happy to lend to people in need of money.

And different from Big Banks, local banks tend to keep their loans on the books, giving them permission to draw their own mortgage playbook, separate from what a Fannie Mae-bound loan requires.  We call these mortgages "portfolio loans" and if you've never seen one, the guidelines can look a little weird.

• PMI typically not required above 80% loan-to-value
• 100% of funds needed at closing can be gifted from anywhere
• Closing within a LLC or other corporation is permitted

The good news for jumbo mortgage holders, though, is that portfolio lenders are killing what the likes of the Big Banks have to offer. 

For example, I'm currently quoting a $1,500,000, 7-year ARM at 5.125 percent (APR 5.221).  I tried to shop the same product at a few Big Banks -- none would even consider the loan, let alone try to price it.  And, there are plenty of other examples like this, too. 

• $1.5 cash out mortgage with 60 percent equity, primary residence
• $2.0 million mortgage at 65 percent LTV, primary residence
• $3.0 million mortgage at 50 percent LTV, vacation home

On rare occasions are loans like this approvable through the largest of lenders. It often takes a niche lender to get it done. 

Finding niche lenders isn't always easy, but it can be worth the extra effort.  Mortgage rates are often lower, downpayment requirements are often smaller, and the underwriting process is often smoother.  As a mortgage broker, I work with a lot of them.

If you're having trouble finding a bank to service your "large loan", .  I lend in all 50 states and am sure I can help you find one.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.