SteveKnowsLoans is Florida’s premier mortgage broker; therefore, their professionals have worked with numerous loan packages. A jumbo loan, also known as a jumbo mortgage, is a frequent sort of non-conventional loan that we assist our clients in obtaining.
Define the term “jumbo loan.”
To put it simply, a jumbo loan is a mortgage loan in excess of the amount that is considered conforming by the Office of Federal Housing Enterprise Oversight (OFHEO). This means that the maximum loan amount that Fannie Mae and Freddie Mac will buy or guarantee is capped by the federal government. Any home loan that is greater than that is classified as a jumbo loan.
Conforming loan limitations fluctuate annually and are not uniform across all housing markets. Currently, in most areas, $766,550 is the maximum loan amount for a conforming mortgage on a single-family house. The ceiling can go as high as $1,149,825 in high-priced areas like Hawaii and Alaska.
Mortgages in South Florida can easily exceed even the upper end of this spectrum due to the area’s high real estate values. Even if prices are within these ranges, many Florida homebuyers do not have the kind of credit or income history that would make them eligible for a large conventional loan.
How Does a Jumbo Mortgage Differ from a High-Balance Conventional Loan?
When the loan amount exceeds the upper limit established by the Office of Federal Housing Enterprise Oversight (OFHEO), the mortgage is considered a high-balance conventional mortgage. Borrowers who are looking at getting a conventional mortgage with a large loan amount can be better off with a jumbo loan.
Because of the greater potential for default associated with jumbo loans, they are subject to stricter scrutiny and a separate set of underwriters than high-balance conventional mortgages. The underwriting rules for conventional high-balance mortgages are not always less stringent than those for jumbo mortgages; in some cases, they are even tighter.
When Might It Be a Good Idea to Get a Jumbo Loan?
- People in the market for expensive homes.
- People whose mortgages might cause them to go above the OFHEO conforming loan limit because they are purchasing expensive real estate.
- People who have accumulated a lot of wealth through non-traditional means
- People who have a low debt-to-income (DTI) ratio and a high credit score and can therefore afford a sizable down payment
- People who are thinking about applying for a traditional loan but have a large loan balance
Which types of real estate qualify for jumbo loans?
- Main Places of Residing
- Vacation Homes
- Investments in Time-Off
- Property Investments
- Freestanding Houses
- Apartment Complexes
Some highlights of our many jumbo loan options are as follows:
- PMI is not required by any of our jumbo loan options.
- After a bankruptcy, foreclosure, or short sale, several of our jumbo loan programs can be used with a far shorter waiting period than conventional loans.
- A 620 FICO score may still qualify you for one of our Jumbo Loans.
- There are plans with $2,000,000 in coverage maximums.
- Some of these loans have interest-only payments.
Call us if you want a Jumbo Loan, or if you just want to learn more about our Jumbo Loan options.
SteveKnowsLoans can help you choose the best mortgage loan package for your unique scenario. We’re here to help you achieve your real estate goals, whether that’s buying a property or refinancing an existing loan, whether you’ve been through bankruptcy or foreclosure, and whether or not you have savings and a credit history.
Call Steven Jackson at 813-616-9411 now!
