A Jumbo loan is a mortgage loan with an amount larger than
conforming loan limits set by the Office of Federal Housing
Enterprise Oversight (OFHEO) which sets the conforming loan
limit size annually. For most areas of Florida, the maximum loan
size for a conforming mortgage is $484,350 (2019 limits) for a
single unit property. Above this amount, all loans are
considered to be Jumbo loans unless you are in a high balance
area.
Jumbo mortgage loans are not eligible to be insured by FHA,
purchased, or securitized by Fannie Mae and Freddie Mac, as they
are considered non-conforming.
Jumbo mortgage loans are often securitized by institutions other
than Fannie Mae or Freddie Mac. These mortgage loans carry a
greater credit risk than those issued by Fannie Mae or Freddie
Mac, and therefore, come with higher interest rates. However, in
recent years the spread in interest rates between jumbo and
conventional mortgages has been reduced.
When it comes to Jumbo mortgage loans, the larger the loan is,
the tougher the lending requirements will be. Each lender has
different requirements. At High Definition Mortgage Inc., having
access to several secondary market investors, gives us a better
opportunity to help you shop for the best mortgage loan for you,
with just one credit pull. Lender loan limits vary from $1
million to $10 million. Loan to value (LTV) limits range from
65% to 90%. Some lenders limits are fixed, whereas others have
mixed flexibility. Remember, the higher the lender risk, the
higher the interest rate may be.
Another option for a consumer may be to look into a combination
loan, which would be a standard Conventional loan up to the
$484,350 conforming limit with a trailing second mortgage.
However, most second mortgages are limited to a ten year note or
balloon payment at tens years. We would recommend have a well
thought out plan before taking this route.
If you have any questions or would like further assistance, please contact us directly and we will try our very best to help wherever possible.
We are a Florida mortgage brokerage and our services have been designed to remove the stress and misunderstandings commonly associated with a mortgage loan.
For further information about getting the right mortgage for you
and to arrange your ‘NO-FEE ASSESSMENT’
Call us on 941-444-9240
