When your loan limit exceeds conforming loans, you'll require to take a jumbo loan. The term "jumbo" usually refers to any size of home that exceeds this limit, but it can also refer to loans that exceed this amount as well.
Although these types of loans have been available in the past, they were not always common because they often came with high-interest rates and fees.
In today's market, there has been an increased demand for these larger loans due to lower interest rates, making them less expensive overall when compared with other forms of debt like credit cards or personal lines of credit.
A borrower will need to meet specific qualifications set by each lender and provide sufficient documentation of income and assets to qualify for a jumbo loan.
Many lenders accept 10% or less for conforming loans as a down payment, but Jumbo loans Florida need at least a 20% down payment.
Lenders want to ensure you're financially responsible before lending you hundreds of thousands of dollars. So to qualify for a jumbo loan, you'll require a better credit score than you would for a conventional loan - typically at least 700.
However, the higher your score, the better your rate. Therefore, it's essential to make sure you meet all lender qualifications and consider all factors before making your final decision.
Your specific debt-to-income ratio will vary depending on your lender, but a jumbo loan will almost certainly require a lower ratio than a conforming loan. Most people ask for a ratio of roughly 40%, plus or minus a few percentage points.
Your jumbo loan rate will be defined by factors such as your credit score, down payment, and term length, just like a conforming loan. On the other hand, Jumbo loan rates are often higher than conforming loan rates.
Our mortgage lenders in Florida would like to help take care of everything! Our loan specialists from 1st Florida Mortgage will walk you through each step of the home loan process from start to finish. So get in touch with us today!
