The requirements for jumbo loans have continued to relax in recent years. Florida's housing market overall has been on a steady rebound since the financial crisis year ago. Until recently, the minimum down payment for jumbo mortgages was typically 15%, with some more aggressive lenders offering programs with only 10% down. Fast forward to 2017 and we starting to see jumbo financing options that require only a low 5% down payment. Below we will discuss the loan application guidelines buyers will need to know before applying.
To start let's look at what defines a "jumbo loan" A Florida jumbo loan is a mortgage that exceeds conforming loan limits set my Fannie Mae and Freddie Mac. Most counties in Fla (and the country for that matter) have a set conforming loan limit is $424,100. The exception is a few higher costs locations of Naples/Collier County and Monroe County (Florida's Keys) To clarify, the loan amount is what's important, not the property or appraised value. For example, if you put $150,000 down payment on a home appraised at $565,000, your loan would be $415,000. Since this amount is less than the conforming loan maximum of $424,100 - a standard conventional loan would be the best option.
Now let's discuss the requirements to obtain jumbo loan approval. Regardless of down payment, loan to value - buyers should be prepared to have the following:
- Buyers need to be prepared to documents their financial status. This means a full two years of employment earning documentation, tax returns, etc. In addition, assets information is required to document down payment, closing costs and reserves.
- Applicants credit scores need to be 700 or above to be eligible for 95% Jumbo financing option. Applicants with lower credit score down to 660 can be approved with 10% + down payment. No serious financial setbacks in the previous 5 years - short sale, foreclosure, bankruptcy.
- Self-employed buyers are required to demonstrate a minimum of two years in business. W2 workers just need a two-year history, but not required to be the same employer.
Jumbo Loan Program Highlights: Please note, the highlights below apply only to buyers purchasing a primary - owner occupied home. These loan to value requirements do not apply to investor home purchases, or buyers that want to purchase a vacation home. Such buyers do have financing options with a greater down payment.
- 95% financing - available to qualified buyers up to $1,500,000 loan amount. 700 credit required.
- 90% financing - available to qualified buyers up to $2,500,000 loan amount. Exact minimum credit score required will depend on the actual loan amount. Generally 640 credit for loan amounts under $800,000 and 680 credit for loan amounts higher.
- 85% financing - available to qualified buyers over $3,000,000 loan amount. These programs require a minimum 680 credit score, and generally 6 months of reveres after down payment and closing costs. Contact us below for more details.
- Loan Terms: All program have 30, 15 year fix rate options, along with adjustable rate (ARM) options.
- Loan Structure: Depending on the property state - most programs offer a 1st and 2nd mortgage combo loan option, or a single loan option. Both with no mortgage insurance (PMI)
- Flexible refinance options up 95 percent (no cash out) are available. This is great for homeowners that want to consolidate their 1st and 2nd mortgage, or maybe switch from an ARM to fix rate loan.
- Cash out refinance options available up to 85% LTV.
The 95 percent jumbo purchase option has become very popular for Florida home buyers in more expensive locations around the coast like Naples, Miami Beach, Palm Beach, Pinecrest, Boca Raton, Ponte Vedra, Orlando, Coral Gables, Tampa, St. Petersburg and Sarasota.
Buyers that have questions can contact us by calling ph: 800-962-0677 or visit http://JumboMorgageSource.com. Serving home buyers nationwide.
Comments (0)Subscribe to CommentsComment