Florida Jumbo Loan Requirements: For those Florida home buyers seeking higher loan amounts (over $647,200) a Jumbo mortgage may be the right answer. Jumbo loan guidelines have continued to relax over the last few years. As home values continue to rise, mortgage companies are experimenting with loosening up lending standards on jumbo loans as a way to increase their volume.
In fact, select lenders are now offering Jumbo loans with only 5% down payment in Florida and other states. In 2022, mortgages are considered “jumbo” amounts when they exceed $647,200. However, in some of the most expensive high costs markets, the jumbo threshold doesn’t start until $970,800.
Most of the Jumbo loans today will require full documentation. This means being able to properly document all income, assets among other things. Fixed and 3,5,7,10 year adjustable rate terms are still available with Jumbo loans in 2022.
Many jumbo loan options today do not require monthly PMI to be paid. There are also financing options for vacation homes, 2nd homes, and investment property purchases. However, any property that is NOT a primary home will require a larger down payment. 95% Jumbo financing is only available for owner-occupied homes – up to $1,000,000 loan amounts. A loan amount greater than $1.0m may also require a larger down payment of 10% down. See the latest requirements and Jumbo loan guidelines here.
Most of the higher LTV (90%, 95%) Jumbo loans today will require 700 credit scores to be considered for financing.
Some self-employed Jumbo applicants may have trouble documenting income, etc. For those borrowers, a non-conventional loan may be better suited. Most of the non-conventional loan program today allow for reduced documentation, flexible fixed rate and ARM terms. Like above, they allow for the purchase of second homes and investment homes. These are the highest-risk loan due to the higher loan amounts and reduced documentation. As a result, borrowers can expect to pay a slightly higher down payment and interest rate.
Homeowners that already have a Jumbo loan and want to refinance via “rate/term” or “cash-out” please contact us to discuss the latest requirements. We offer Jumbo refinance options for primary, secondary and investment properties
Happy to serve Miami Dade, Brickell, Coconut Grove, Tampa, Jacksonville, West Palm Beach, Naples, Sarasota, Boca, Daytona, Orlando, Key West, St. Petersburg, please contact us here with questions.