Tampa Florida is home to many luxury homes. In addition, it is common for buyers to take out a mortgage for the purchase of their luxury homes. For many of these buyers, it is necessary to have a jumbo or super jumbo mortgage.
The question has been raised before of when it is necessary to have more than one appraisal on a property. Now, every mortgage lender has their own requirements, but in general certain high loan amounts will require an additional appraisal. The following are our appraisal requirements in regards to jumbo and super jumbo mortgages:
- Generally, only one appraisal is required on loan amounts up to $1,000,000.
- For loan amounts from $1,000,000 to $1,500,000, one full appraisal and a field review or two full appraisals must be completed.
- Two full appraisals will be required on loan amounts greater than $1,500,000.
When two appraisals are required, generally the appraisal with the lower value will be used.
You may ask why Jumbo and Super Jumbo loans have these additional requirements. It is because of risk. Just like a borrower with a below average credit rating has additional qualifications, so do the high loan amounts associated with jumbo loans. I recently wrote a post to this subject.
If you are a local REALTOR working with a luxury home buyer, you may want to be aware of this additional requirement. Consult your mortgage professional to find out up front if you may have to have more than one appraisal completed.
If you are a luxury home buyer in Tampa Bay and would like to know your options for your purchase and jumbo mortgage requirements, please feel free to email Leah, directly for a complimentary consultation.
Leah Ross, Tampa Mortgage Consultant, proudly serving South Tampa, Davis Island, Harbour Island, New Tampa, Brandon, Westchase, Clearwater, St. Petersburg and the remaining Tampa Bay area.