More and more Florida mortgage lenders are now willing to offer jumbo loan mortgages to borrowers who are trying to finance larger homes. A jumbo mortgage is one that exceeds the “conforming loan limits” set by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. These limits represent the loans the GSEs are willing to purchase from approved mortgage sellers. In Brevard County, like most of the country, the conforming loan limit is $424,100 for a single-family home. The limit is higher in some more expensive counties, like Monroe County ($529,000) and Collier County ($450,800). A mortgage loan that exceeds those limits is called a jumbo loan.

After the 2008 financial crisis, many lenders reduced the amount of jumbo loan mortgages they would issue, but now that the market has improved, jumbos are also making a rebound. In the past, jumbo loans had much higher interest rates than conforming loans, but jumbo rates have been dropping down closer to, and sometimes lower than, conforming loan rates. Overall, jumbo loan mortgages are becoming easier to manage.

Making the Grade

While jumbo loan mortgages are increasing, the rules for qualifying for a jumbo loan are pretty basic. To qualify for a jumbo loan today, you will probably need:

  • A minimum 20 percent down payment, keep in mind some lenders allow as little as 10 percent down payment.
  • A credit score of 720 or higher, though some lenders allow scores as low as 620
  • Thoroughly documented income
  • Your new monthly mortgage debt and other monthly debts should not exceed 43% of your gross monthly income.

Shop around

Just because one lender turns you down, that doesn’t mean you can’t get a jumbo loan mortgage. Requirements and interest rates for these “portfolio loans” can vary between lenders, so it’s a good idea to check with more than one lender. If you’re planning to finance a larger home, Embrace Home Loans has extensive experience with jumbo lending. We can help you get the financing you need to make your dream home a reality. Call us at 407-733-6425.

No related content found.