Interactive Mortgage Tools

Mortgage Information

A Jumbo loan is a mortgage that exceeds the maximum conforming loan limit established by Fannie Mae and Freddie Mac. In Florida, these

loan types include all mortgages above $417,000 for a single family property. A Jumbo loan is most commonly used to finance more expensive homes and usually requires a higher down payment than a conforming loan. Interest Rates and down payment requirements on a Jumbo loan are typically higher than a conforming loan. This occurs due to a number of issues that involve both secondary market considerations (how a Jumbo loan is securitized and sold as an investment), as well as additional risk factors presented by a Jumbo loan. These risk factors include, but are not limited to; loan amount (loan amounts above $850k usually have add-ons to interest rate), loan-to-value (lower down payments may increase your interest rate), occupancy (second homes may have a higher rate than primary residences, as risk of default is greater on a vacation home), property type (condominiums may have higher down payment requirements and interest rates than sigle family homes), credit score (lower credit scores can raise your interest rate and down payment requirement). Income guidelines for a Jumbo loan have similar debt-to-income requirements as conforming loans, but may have more flexibility in determining how income is calculated.

Credit quality guidelines for a Jumbo loan are typically higher than conforming loans, due to increased loan size and other risk factors. Most Jumbo loan lenders require a minium 680 - 700 credit score. Asset prerequistes for a Jumbo loan are typically more than conforming loans, as down payment and reserve requirements are higher. In Florida, a Jumbo loan down payment on a single family property will depend on occupancy, credit score and loan amount. A Jumbo loan is primarily available for an owner-occupied primary residence or second home that is a 1 unit property. Jumbo loan programs offer a variety of Fixed Rate Mortgages and Adjustable Rate Mortgages. Most loan programs are available with 15 or 30 year terms. Jumbo loan appraisal requirements are similar to conforming loans, however, higher value properties may require 2 appraisals. The cost of a Jumbo loan appraisal is typically higher than one for a conforming or FHA loan.