Jumbo Loan In Florida

Jumbo loans, otherwise referred to as a jumbo mortgage, is a home debt for an amount that is greater than the conforming limit set that are eligible for purchase by Freddie Mac and Fannie Mae. A jumbo loan is any loan amount greater than $647,200 for the majority of the state of Florida in 2022 and $726,200 for 2023. The exception is Monroe County which is $710,700 for the year 2022 and $874,000 for 2023.

A jumbo loan is any mortgage amount greater than $647,200 for the majority of the state. The exception is Monroe County which is $710,700 for the year 2022.

When the subject property in Florida has more than 1 unit, the jumbo loan limit increases, for instance, a 2 unit home the max is $828,700. The limit for a 3 unit complex is $1,001,650 and for a 4-unit is $1,244,850. However, Monroe County has a higher cap for all properties, for 2 it is $909,800, 3 is $1,099,750 and 4 is $1,366,750. This is the max for a jumbo loan in 2022, for 2023 the loan cap should increase.

Purchasing a home with an amount less than the above amounts is considered conventional. So when you compare a jumbo loan vs a conventional loan, this is the main difference. To learn more about what is a jumbo loan, or other mortgage education, you can contact us to learn more about getting a jumbo loan in Florida.

What are Jumbo Loans?

Let's start by starting with what are jumbo loans, we need to start with conforming loans. conforming loans have a lending max. Every year, the FHFA will set the conforming loan max for every county in the United States. However, there are cases whereby individuals want to buy properties and the amount available via a conforming loan is simply not going to be sufficient. This is when a jumbo loan is needed.

A mortgage that is for an amount that exceeds the local conforming max is a jumbo mortgage and can go up to any amount. Your finances will be received more stringently than traditional mortgages and there are typically stricter credit requirements when going down this route due to more money at risk.

How do Jumbo Loans Work?

As jumbo loans involve borrowing more money, it is not uncommon for the application process to be more stringent and rigorous, so do keep this in mind. You will typically need a larger down payment, greater cash flow, and a higher credit score. Additional assets can also be very beneficial. However, every lender is different and has different requirements, Mortgage Quote has jumbo mortgage loan programs that might meet your needs.

Better Understand

Jumbo loan mortgage programs are popular products to gain entry into luxury style homes with less of a down payment. Jumbo loans can be unique regarding mortgage insurance as well, depending on how much money you put down as some lenders will have what is called lender paid mortgage insurance, no MI, or will have the standard charges for MI if you borrow more than 80% of the base amount. The base amount is determined by either the purchase price or the appraised value of the property, whichever is less. Other words, if the property is being purchased for 2 million, but the appraised value is 1.8 million, then the 1.8 million value will be used when determining the loan-to-value.

Jumbo Loan In Florida

Jumbo Loan vs Conventional

Jumbo Loans may have stricter underwriting guidelines when compared to conventional loans. Conventional loan backend debt-to-income (DTI) may get approved at 45% or 50%, depending on the criteria entered into the automated underwriting system (AUS). However, a jumbo loan may be a hard 45% on the backend DTI ratio. The reserve requirements may be longer than conventional as well, jumbo loan reserves can range depending on the loan-to-value or other criteria.

How to Improve Your Chances

By working with a mortgage broker like MortgageQuote.com, you may then understand what it feels like to have a dedicated mortgage loan originator guide you through the loan process. At times, a jumbo can be fairly complex, especially if you are self-employed as a jumbo loan may need a reasonable explanation behind it to help better explain the situation. If your loan originator can not explain the reason or your situation in layman terms, or know the rules of the program, then the underwriter may just deny the file. Keep in mind, underwriters are people too, at times they make mistakes just like the rest of us. However, by knowing guidelines or being able to provide a reasonable explanation to the UW, then this can be the difference between getting approved or getting denied. So why wouldn’t you want to work with a mortgage broker rather than direct lenders? Keep in mind, mortgage brokers need to pass a state exam, unlike direct lender originators.

Close Faster

The time to close on a jumbo loan may take a little longer than a typical conventional loan as they typically go through a dedicated senior and junior underwriter. These mortgages typically do not get automated underwriting, therefore there are risk factors of human mistakes, therefore to help lower risk the file may get more stipulations or conditions to help make the UW feel better than the borrower can repay the loan. While a typical conventional loan can close anywhere between 8 days to 14 days, a jumbo loan may need 30-45 days, depending on the situation.

Get a Mortgage Quote

If you are ready to start the mortgage process, then you can get started here. Our goal would then be to provide you a Pre-Approval ASAP. If you prefer to first get a mortgage quote on a jumbo loan, then complete our home buyer inquiry form for a new home purchase, or for a refinance inquiry. You can contact us to learn more.