For those Florida home buyers seeking higher loan amounts (over $766,550) a Jumbo mortgage may be the right answer. Jumbo loan guidelines have continued to relax over the last few years, and new programs allow for even lower down payments.
Florida remains a popular destination for luxury buyers, and home values have continued to rise. With higher priced homes comes the need for larger loan amounts, which can exceed the conventional loan limits set by Fannie Mae and Freddie Mac. This is where Jumbo mortgages come in, they help fill the gap especially in more expensive markets like Miami, West Palm Beach, Tampa, Orlando, Naples, etc.
In 2024, mortgages are considered “jumbo” amounts when they exceed $766,550. However, in some of the most expensive high-cost markets, the jumbo threshold doesn’t start until $1,149,825.
Note: the only “high-cost” location in Florida is Monroe County (the Keys) and the current conventional loan limit is $929,200 for a single 1-unit property. Please find the complete 2024 conforming loan list here. Muti-unit properties will have even higher loan limits.
Lenders will also typically require a larger down payment, usually around 20% of the home’s purchase price. However, select lenders are now offering Jumbo loans with only a 5% down payment in Florida and other states.
Most of the Jumbo loans today will require full documentation. This means being able to properly document all income, and assets, among other things. 30-year, 15-year and common 3,5,7,10 year adjustable rate terms are still available with Jumbo loans. All programs are fully amortized with principal and interest payments.
Most jumbo loan options today do not require private mortgage insurance or PMI to be paid, even when financing more than 80% loan to value. 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 $1,500,000 loan amounts.
Any loan amount greater than $1.5m-$2m may require a larger down payment of 10%. Most of the high LTV (90%, 95%) Jumbo loans today will require 680 credit scores to be considered for financing. Please find the latest requirements and complete Jumbo loan guidelines here.
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 programs 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.
We are open 7 days a week to serve you and help answer any questions. Please connect with us today by calling, or just submit the Info Request Form found on this page.