After the financial crisis of 2008, getting a jumbo mortgage was difficult. That’s now changed because jumbo mortgages are more available, and more affordable, too, meaning there are more options out there for those needing a Florida mortgage to realize their dreams of owning a home.

A jumbo mortgage is a term that describes a home loan that is larger than the conforming loan limits set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy mortgages from lenders. Those conforming loan limits are $417,000 for most of the United States, though they can range up to $625,000 in higher-cost areas.

Bigger purchases

Pricey Florida real estate can easily cost more than the conforming loan limits, and many Florida buyers look to jumbo mortgages to finance their dream homes. While the mortgage process for jumbo loans is similar to that of smaller mortgages, the requirements for jumbo mortgages are more stringent. Typically, jumbo mortgages require a high credit score and down payments are larger. The property’s appraisal must support the mortgage that the borrower wants. Applicants will need to show that their income and assets are sufficient to pay the mortgage, and will usually need to have a debt-to-income ratio of less than 45 percent. Jumbo borrowers may also need to have at least six months of payments in their bank accounts after closing.

There are advantages to jumbo mortgages though. Interest rates are at historical lows, and jumbo borrowers can take advantage of that. In addition, interest on loans up to $1 million is tax-deductible. The maximum loan amount is established by the lending institution, instead of the guidelines set by Freddie Mac and Fannie Mae. And because the loans aren’t conforming, the lending institution can frequently offer more flexibility in qualifying for the loan. And finally, jumbo loans are sold on the secondary market meaning your lender will continue to service your loan.

Better deals

At Embrace Home Loans, we can help our clients take full advantage of jumbo mortgages. We are experts in jumbo mortgage loans, and we have options that require only a 10 percent down payment, as well as avoiding private mortgage insurance (PMI). Eligible veterans may be able to take advantage of Veteran’s Administration (VA) jumbo mortgages, with low down payments and no mortgage insurance. And Embrace Home Loans currently feature low rates on 30-year fixed-rate mortgages.

So don’t let a price tag turn you away from the home you want. Contact us today at 800-620-6292 for information about jumbo Florida mortgage options available for you.

 

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