In the not-too-distant past, jumbo mortgages were almost impossible to find. After the financial crisis of 2008, many lenders shied away from any mortgage loans that weren’t backed by the government, like FHA or VA mortgage loans. And Brevard County jumbo mortgage loans aren’t backed by the government.

Jumbo mortgage loans are loans that exceed the “conforming limit” – which is the maximum loan amount that the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac will buy. In most housing markets, that limit is $417,000. So, any mortgage bigger than that is a jumbo. Some expensive housing markets have higher conforming limits. In Florida, for example, Collier County’s limit is $448,500, and Monroe County is $529,000.

Jumbos are Back

Jumbo mortgages are much easier to find now, but there are more requirements than before. While some lenders may be flexible, you will probably be required to:

  • make a down payment of at least 10 percent.
  • thoroughly document your income.
  • have a credit score of 720 or higher.
  • make sure your new monthly mortgage payment is no more than 43 percent of your income before taxes.

Don’t forget to ask for both fixed rate options as well as adjustable, each has its own advantages.

Shop Around

Since jumbo loans are too big for government agencies, they’re handled by private lenders. That means each lender sets their own rates and establishes their own requirements. Conforming loans, on the other hand, often have the same rates and similar closing costs from lender to lender. Jumbo lenders also often have different requirements for the type of home (such as house or condominium), whether or not it’s your primary dwelling, whether or not it’s investment property, and so on. So it’s important to shop around to get the best mortgage that meets your individual needs.

Know Your Options

At Embrace Home Loans, we understand Brevard County jumbo mortgages, and we’ll work with you to get you the mortgage you need. With today’s low interest rate environment, jumbo loans are available at extremely attractive rates. To find out more about how a jumbo mortgage can benefit you, call us at 407-733-6425.

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