Jumbo Loans
Jumbo Loan is a type of mortgage that exceeds the maximum loan amount set by Fannie Mae and Freddie Mac, which is at $750,000 in most areas of the country, resulting in Jumbo Loan limits ranging from $750,000 up to $6 million or more. Jumbo loans can be used to finance primary residences, vacation homes, and investment properties.
Eligibility and Requirements
Obtaining a jumbo loan involves meeting stricter requirements compared to conventional loans. Lenders typically require a higher credit score, usually above 700, and a lower debt-to-income ratio. Additionally, a larger down payment is often necessary, ranging from 10% to 30% of the purchase price. Income verification and a strong financial history are also crucial for eligibility.
Franklin Mortgage Holdings offers a full suite of fixed-rate, ARM, interest-only, 15 or 30-year term, and a myriad of non-QM jumbo products featuring competitive pricing along with transparent guidelines and loan qualifications. These custom options aren’t offered at most big banks or retail lenders, and we are here to win your jumbo business. Whether you are looking to invest in high-priced properties or need tailored loan solutions, Franklin Mortgage Holdings is here to help you navigate the process efficiently.
Jumbo Loans: An Overview
If you are looking for a larger mortgage to purchase your dream home or refinance your existing mortgage, you might have heard of a Jumbo Loans. These loans are designed to help you finance high-end properties that exceed the conforming loan limit set by Fannie Mae and Freddie Mac, which varies depending on the county in which the property is located. In Florida, the conforming loan limit for a single-family home range from $750,000 to $874,000, depending on the county.
What is a Jumbo Loan?
A Jumbo Loan is a mortgage that exceeds the conforming loan limit set by Fannie Mae and Freddie Mac. These loans can be used to purchase or refinance primary residences, second homes, and investment properties.
Jumbo Loans typically have stricter requirements compared to traditional conforming loans due to the larger loan amount and higher risk involved. However, they offer competitive interest rates, longer loan terms, and customizable options to meet your specific needs.
Why choose a Jumbo Loan?
If you are in the market for a high-end property, a Jumbo Loan could be the ideal financing option for you. Here are some reasons to consider:
- You can borrow a higher amount: Jumbo Loans allow you to borrow larger loan amounts than conforming loans, which can help you purchase a home in a higher priced real estate markets while providing up-to 90% LTV leverage.
- You can get a fixed interest rate, adjustable-rate mortgages (ARMs), and even Interest-Only Jumbo Loans that provides maximum flexibility to meet the DTI requirement, making it easier to plan and budget for your payments.
- You can choose a longer loan term: Jumbo Loans often offer longer loan terms, such 40 Year Amortization Options, than conforming loans, which can help you lower your monthly payments and improve your cash flow.
- You can customize your loan: Jumbo Loans often come with customizable options, such as interest-only payments, temporary or permanent interest rate buydown options, alternative income calculation methods allowance, and more to suit your unique financial situation and goals.
What are the requirements for a Jumbo Loans?
To qualify for a Jumbo Loan in Florida, you will need to meet the following general requirements, while exceptions are possible:
A credit score of 660 or higher: Jumbo Fixed loans usually require a higher credit score than conforming loans to demonstrate your creditworthiness and ability to repay the loan.
A low debt-to-income ratio (DTI): Jumbo Fixed loans typically have a maximum DTI of 50%, which means your monthly debt obligations cannot exceed 50% of your gross monthly income.
A substantial down payment: Jumbo Loans often require a larger down payment than conforming loans to mitigate the lender’s risk. The minimum down payment for a Jumbo Fixed loan is usually 10%, but lower credit score Borrowers must be prepared for a down payment requirement of 20% or more.
A stronger financial profile: Jumbo Loans require you to provide key financial documentation, for full doc loans it includes tax returns as well employment history and income related documentation, while for self-employed applicants it often includes 12 months of bank statements with supporting CPA letters or P&L reports. We at Franklin Mortgage structure Jumbo Loans in the way that highlights your financial stability and ability to repay the loan.
Why Ask Franklin Mortgage Holdings for Help with Jumbo Loans?
Our highly experienced team of mortgage professionals will work tirelessly to ensure that each client gets the right financing option that suits their specific financial profile or property type.
With competitive rates, flexible repayment terms, and quick turnaround time, we guarantee a hassle-free loan experience for our clients. So, if you’re looking for a trusted partner to finance your dream home with a Jumbo Loan, contact us today. Let us help you achieve your real estate goals with the right Jumbo Loan option.