For luxury buyers in South Tampaand throughout Hillsborough County, there is a bigger hurdle for financing the dream home...the Jumbo Mortgage.
If you are not familiar with the term, "Jumbo Mortgage", it is a type of mortgage for individuals looking for a loan over the conforming loan limit. The conforming loan limit for our area happens to be $417,000. Hence, a buyer looking to purchase a million dollar home and take out a loan for $700,000 may need a Jumbo Loan.
The roller coaster events in the mortgage industry have caused lenders to take caution with the Jumbo and Super Jumbo loan market, just as they do with any other risky loans, including subprime mortgages. While the Jumbo loan market is not as bad as the subprime market, we are seeing the following affects to Jumbo loans:
~ Increase in Fixed Rate Mortgage rates, roughly 1 point higher than standard conforming interest rates
~ Tightening of documentation requirements
~ Lower LTV limits
~ Increased scruitiny of the appraisals
This message is meant as education for my local buyers to be aware of what to expect when setting up your Jumbo Loan. I spoke to a client today and he was a bit shocked by the difference in interest rates versus where they were a year ago...oh yes, how times change!
If you are purchasing a home in the Tampa Bay area and need to consider Jumbo or Super Jumbo loan financing and would like a complimentary consultation to your financing options, please email or call Leah Ross, Your Tampa Bay Mortgage Source.
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