Jumbo Loan In Florida
You may ask, what is a jumbo loan in Florida? A jumbo loan is any loan 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 limit is $828,700. The limit for a 3 unit complex is $1,001,650 and for a 4 plex, the limit is $1,244,850. However, Monroe County has a higher limit for all unit properties, for 2 units it is $909,800, 3 units is $1,099,750 and 4 units is $1,366,750. This is the limit for a jumbo loan in 2022, for 2023 the loan limit should increase.
Purchasing a home with a loan amount less than the above amounts is considered conventional loans. 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.
To Better Understand A Jumbo Loan in Florida
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 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 For A Jumbo Loan in Florida
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, jumbo loans 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 On A Jumbo Loan in Florida 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 loans 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 For A Jumbo Loan in Florida
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.
Jumbo Loan Limits
Jumbo Loan and FHA Limits