Florida Jumbo Mortgage Loans

Posted by Matthew Krause on November 24, 2009

A jumbo mortgage is different than a conforming loan. A jumbo loan amount exceeds that limit set by FNMA. That limit can change every year, but is currently at $417,000.

Contrary to popular belief jumbo mortgage rates are very low in most cases. On a 5/1 arm rates in the low 4% range are readily available.

Jumbo mortgage loans can be use for purchase or refinance. On a purchase the borrower will need to put 30% down or more in order to qualify for financing. In many cases using the banks money can make more sense than using cash or liquidating stock.

It generally takes 30-45 days for a loan to close. It can take longer if the Loan Officer or Mortgage Broker is not experienced with the jumbo mortgage underwriting process. With the right company the process can be very easy.

In general the most competitive jumbo mortgage rates will be on loan amounts between $417,000 and $850,000. For loans above these levels you can expect a slight increase in rates. The loan sizes that are offered vary from state to state and from lender to lender

The loan to value that is offered on jumbo mortgages is dependent upon the loan amount, occupancy status, and property type. Down payment requirements can will range from 30% to 50% depending on many factors.

W-2 employee’s are required to have a 660 credit score and a 700 score is required if the borrower is self employed. Jumbo mortgages require full income verification.

Cash out refinances are available to qualified borrowers. The loan amount will determine what percentage of the value is eligible for cash out. For loan amounts up to $ 850,000 cash out is allowed up to 65% of the equity. This percentage is reduced to 50% as you move towards the $ 3,000,000 loan size.

Jumbo Loans are available for both primary residences as well as second homes. Borrowers should expect higher rates and more conservative loan to values on second homes compared to owner occupied residences. It all boils down to risk!

For more information about Florida Jumbo Mortgage Programs and if you would qualify. Group One Mortgage specializes in Jumbo Mortgage loans through the State of Florida