We lend up to 90% LTV (Loan-to-Value) for loan amounts up to $2 Million or more!
The maximum loan amount approved by Fannie Mae or Freddie Mac is typically $417,000 for a single-family residence, but can reach as high as $625,500 in higher-cost areas. Anyone in need of a larger loan will need to look toward non-conforming options such as the Jumbo loan. A jumbo loan is a mortgage with a loan amount that exceeds these limits. At JZ Mortgage Services, Inc. we offer jumbo loans on a variety of property types including primary residences, vacation homes, and investment properties throughout Bradenton, St. Petersburg, Sarasota, and Tampa.
Since they are considered non-conforming and ineligible for purchase by Freddie Mae or Fannie Mac, Jumbo loans are generally a bit riskier for lenders compared to conforming loans. Lending criteria and credit requirements can be more stringent with a jumbo loan. Slightly higher interest rates can be charged as well. Some of the more common requirements that must be met for a borrower to qualify for a jumbo loan can be found below. One thing to note is that lenders can always set their own jumbo loan criteria as the loans do not need to adhere to the same Fannie Mae and Freddie Mac guidelines that conforming loans do.
Florida Jumbo Loan Requirements
Credit Score – A credit score around 700 is going to be required for a jumbo loan. Lender-specific criteria set as well as the borrower’s unique financial situation may offer flexibility.
Down payment – Traditionally, a down payment of at least 20 percent is needed for a jumbo loan. Lower down payments closer to 10 percent may be available for some borrowers. Income and assets will need to support the lowered down payment requirement and private mortgage insurance (PMI) may be required.
Debt-to-Income Ratio and Income – A debt-to-income ratio of 43 percent or less is standard. Documentation such as W2 forms and recent paystubs will be required to verify income. This is necessary to prove that you have the income and reserves necessary to cover your mortgage payments.
Property Appraisal – The property being purchased will need to support the purchase price and the mortgage being applied for.
Documentation outlining proof of income, liquid assets, non-liquid assets, and any other loans that you may hold will be required so be prepared to provide this information. Your lender requires this information to show that you have the ability to repay the loan you are applying for. Missing documentation can delay the approval process so the more information you can gather ahead of time, the smoother the process will be.
Jumbo loans can be a great choice for many different types of borrowers including those looking to purchase a more expensive home, investment property, or even a second home in Florida. At JZ Mortgage Services, Inc., we offer great rates and flexible payment options on jumbo loans throughout Bradenton, St. Petersburg, Sarasota, and Tampa. Contact us today for more information on Florida jumbo loans or to begin the pre-qualification process.