Jumbo Mortgages In Florida

By Matthew Krause

A jumbo mortgage loan amount exceeds that limit set by FNMA. That limit can change every year, but is currently at $417,000.

It may be hard to believe but jumbo mortgage rates are very low in most cases. On a 5/1 arm rates in the low 4% range are readily available.

Jumbo mortgages are available for purchase or refinance. On a purchase the borrower will need to put 30% down or more in order to qualify for financing. The use of the banks money can make more sense then to use cash and stocks.

The process of obtaining Jumbo Mortgage Financing is very easy to do. It can take 30-45 days for a loan to close. It can take longer if the Loan Officer or Mortgage Broker is not experienced with the jumbo mortgage underwriting process.

The loan sizes that are offered vary from state to state and from lender to lender. In general the most competitive jumbo mortgage rates will be on loan amounts between $417,000 and $850,000. For loans above these levels you can expect a slight increase in rates.

The loan to value that is offered on jumbo mortgages is dependent upon the loan amount, occupancy status, and property type. In general loan amounts below $850,000 will require a down payment of 30%. On the other end of the spectrum you will find that $3,000,000 jumbo mortgage loans will require 50% down payment.

W-2 employee's are required to have a 660 credit score and a 700 score is required if the borrower is self employed. Jumbo mortgages require full income verification.

Jumbo Mortgage loans cash out refinances are available. The loan amount will determine what percentage of the value is eligible for cash out. On Loan amounts up to $ 850,000 cash out is allowed up to 65% of the equity. This percentage is reduced to 50% as you move towards the $ 3,000,000 loan size.

Jumbo Loans are available for both primary residences as well as second homes. Borrowers should expect higher rates and more conservative loan to values on second homes compared to owner occupied residences. It all boils down to risk! - 31382

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