What is a jumbo mortgage loan?
Jumbo mortgage loans are the loans that exceed traditional high-balance loan limits. These mortgages are typically for people who are looking to purchase higher-end, luxury homes that range from $750,000 to $10 million. For a mortgage to be considered a “jumbo mortgage” it has to supersede the loan limit, which is $417K. However, these limits can vary state by state, and county by county. In addition, the limits might vary for a multi-unit property.
In the case of Florida, in order to be eligible for jumbo mortgage loans, the mortgage that you will be receiving will have to be greater than $417K or more, depending on the county that you live in. One thing that you should be aware of when opting for a “Jumbo Mortgage” is that you will also be paying a significantly higher interest rate than you would with a smaller loan. However, in some counties, you can receive a jumbo mortgage for mortgages greater than $625, 000 without having to pay higher interest rates.
Qualifying for a jumbo mortgage loan
While the process for jumbo mortgage loans are similar to that of a conforming mortgage, the requirements differ. There is no private mortgage insurance with a jumbo mortgage, so the down payments are larger, and usually the credit score can be no lower than 700. If one is going to apply for a larger mortgage amount, they are going to have to be able to show the income and the assets in order to pay that. Borrowers may have to fork over a huge amount of money, but there are perks to a jumbo mortgage. For example, jumbo loan rates have reached historic lows and interest on loans up to $1 million is tax-deductible. Jumbo mortgage loans borrowers are getting the best rates today in the history of the country. Contact www.mortgageexpertsflorida.com for guaranteed jumbo mortgage loans.