South Tampa Mortgage | Jumbo Loan Financing Takes a Beating

By
Mortgage and Lending with Your Tampa Bay Mortgage Source

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:

Paperchain men with whip

 

~ 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.

Proudly serving South Tampa, New Tampa, Brandon, Westchase, Clearwater, St. Petersburg and the remaining Tampa Bay area.

Comments (12)

SHAUN WREN
LICENSE IS NOT PLACED - Lakeland, FL
Good to see you are still doing well. I am noticing higher rates for Jumbos too.  Good luck. hopefully things will settle soon and rates will come back.
Sep 05, 2007 08:17 AM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage
Hey Shaun...I'm back in action...  Thanks for the comment!  Hoping that things settle soon with these rates for Jumbo's...
Sep 05, 2007 08:31 AM
Cyndee Haydon
Charles Rutenberg Realty - Clearwater, FL
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes
Leah - the good news is that you and your company can do those loans - no bull - just results and I've still found you guys  provide great rates as well as great service.
Sep 05, 2007 11:13 AM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage
Cyndee ~ Thanks for the no  bull comment!  We are hanging in there and still doing our best for our customers!
Sep 05, 2007 02:08 PM
Paula Henry
Home to Indy Team @ HomeSmart Realty Group - Avon, IN
Realtor - Indianapolis Real Estate - 317-605-4174
Leah - Have you been doing two loans on jumbos to decrease the interest rate or is it not a benefit?
Sep 05, 2007 04:20 PM
Thesa Chambers
Fred Real Estate Group - Bend, OR
Principal Broker - Licensed in Oregon
Leah - 90% of my sales require a jumbo loan - and you are so right - they are tougher today then they were in the past.
Sep 05, 2007 07:03 PM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

Kind of makes me glad that we have a lower avg home price than other areas. Jumbos have dragged down with the rest of alt-a unfairly.

 

Sep 06, 2007 01:38 AM
Stephanie Edwards-Musa
thredUP.com - The Woodlands, TX
knitwit at thred UP
Hey Leah,  Great information on Jumbo's in the Tampa Bay area!  You are the expert!
Sep 06, 2007 04:37 AM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage

Paula ~ On some loans it is a benefit, for others it's not...it just depends on each scenario.  I typically run a couple different options for borrower to discuss with me and we decide which one is best for their situation.  This a great point to bring up though, thanks Paula!

Thesa ~ I can only imagine that it makes your job a little tougher getting through the lenders requirements!

 

Sep 06, 2007 05:58 AM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage

Tom ~ That is great that your prices don't have to rarely deal with this issue.  When I used to originate in Michigan before moving to Florida, I rarely delt with a jumbo loan and back then, they weren't bad.  This market is a whole different story!

Stephanie ~ Thank you so much for the comment! 

Sep 06, 2007 06:00 AM
Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL
Interesting Leah - NOW I understand why the larger-more expensive homes are sitting longer and longer.  Thanks for the update!!  You are the expert in Tampa Mortgages!
Sep 07, 2007 04:36 AM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage
Susie ~ You are quite welcome, just like to keep my peeps informed!
Sep 07, 2007 04:38 AM