Property values in Florida can be some of the highest in the country, thanks to the beautiful beaches, warm weather and other amenities. Home buyers who are looking at buying a luxury home or refinancing their existing homes may want to consider a jumbo loan. Jumbo loans or mortgages are loans that exceed the conforming loan limits set by Freddie Mac and Fannie Mae, the two government-sponsored entities that buy mortgages from lenders. In most parts of the country, that limit is $417,000. Any mortgage loan that exceeds that amount is considered a jumbo loan.

Go big

Jumbo loans are becoming more available and more affordable. Jumbo loans have certain differences from conforming loans. The first, of course, is their size. Jumbo loans allow buyers to finance significantly more, and with this larger loan amount borrowers will typically get a slightly higher interest rate. In addition, qualifying for a jumbo loan normally requires:

  • Higher credit scores
  • Lower debt-to-income ratios
  • Higher cash reserves
  • Higher down payments

However, once you qualify, jumbo loans offer benefits beyond conventional loans, including:

  • Larger financing amounts, which can provide the convenience of a single mortgage rather than multiple mortgages.
  • Competitive interest rates and pricing.
  • Both fixed and adjustable rate options.
  • In-house underwriting and loan servicing, since Fannie Mae and Freddie Mac do not buy jumbo loans from mortgage lenders.

Find out more

Jumbo loans require more money up front, but they do offer other advantages to the right borrowers. Currently, jumbo loan rates are historically low, and interest on loans of up to $1 million may be tax-deductible. Low interest rates mean that homeowners who are refinancing their existing mortgages might be able to save significant amounts of money. And, of course, home buyers can get very attractive rates on new home purchases. For more information about jumbo loans from Embrace Home Loans, visit us at or call 800-333-3004, extension 3560.