The housing market in Florida is steadily improving, and home values are on the rise. That makes jumbo mortgages very important to some home buyers. If you’re in the market for a larger home here in Florida, here are some things you should remember:

  • They’re Bigger. As the name implies, jumbo loans are larger than standard mortgages. For the most part, mortgage loans larger than $417,000 (in 2016) are jumbo loans. They’re called non-conforming loans because those loans are too large to be sold to government-sponsored enterprises Fannie Mae and Freddie Mac. So the lender must service these loans itself.
  • They’re Unique. Because these loans are offered by specific lenders, they can differ widely in terms, interest rates, underwriting requirements, and more. For example, jumbo loans can be offered as both fixed and adjustable rate mortgages. Conforming loans, on the other hand, tend to be more standardized to meet the rules set by Fannie Mae and Freddie Mac. The borrower should shop around and talk to several lenders before settling on a loan.
  • They’re Becoming Very Competitive. As the market improves and jumbo mortgages increase, lenders are offering better rates and lower fees. Remember that each lender sets different requirements, so look closely at all the terms before choosing a lender.
  • They Don’t Always Require a Larger Down Payment. Again, jumbo loans can often feature flexible terms and underwriting requirements. It’s a good idea to talk to your lender and see what options may be available before assuming you’ll need more money.

We Can Help

At Embrace Home Loans, we are experienced at jumbo mortgage financing in Florida. We’ll work with you to structure a jumbo loan that fits your financial needs and gets you into the home you want. Call us today at 407-733-6425 to find out more about our jumbo mortgage options.