Loan Programs
Jumbo Loans
When the home you want exceeds conforming loan limits, a jumbo mortgage provides the financing you need. Designed for higher-value properties, jumbo loans offer competitive terms for well-qualified borrowers in Central Florida's luxury and move-up markets.
What Is a Jumbo Loan?
A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). Because these loans cannot be purchased by Fannie Mae or Freddie Mac, they carry slightly different underwriting standards and are held in the lender's portfolio or sold to private investors.
In Central Florida, the conforming limit is updated annually. Homes in communities like Winter Park, Windermere, and lakefront properties throughout the region often require jumbo financing due to their higher valuations.
Requirements for Jumbo Loans
Credit Score
Jumbo loans typically require a credit score of 700 or higher. Some programs may accept slightly lower scores with compensating factors such as larger reserves or lower LTV.
Down Payment
Expect to put down 10% to 20% or more depending on the loan amount and program. Some jumbo products offer as little as 10% down for strong borrower profiles.
Reserves
Lenders often require 6 to 12 months of mortgage payments in liquid reserves after closing. This demonstrates your ability to handle payments even if income is temporarily disrupted.
Documentation
Full documentation of income, assets, and employment is standard. Self-employed borrowers may need additional documentation such as business tax returns and profit-and-loss statements.
Jumbo Loan Rates and Terms
Historically, jumbo rates were significantly higher than conforming rates. In today's market, the gap has narrowed considerably — and in some cases jumbo rates are competitive with or even below conforming rates for the strongest borrower profiles. Both fixed-rate and adjustable-rate options are available.
Terms typically range from 15 to 30 years, with some lenders offering interest-only periods for the first 5 to 10 years. The right structure depends on your cash flow goals and how long you plan to hold the property.
Who Needs a Jumbo Loan?
Jumbo financing is for buyers purchasing homes above the conforming loan limit in their county. In Central Florida, this typically means homes priced above the current FHFA limit. Buyers in luxury communities, waterfront properties, and custom-built estates frequently use jumbo loans.
It is also common for move-up buyers who are selling a starter home and purchasing a significantly more expensive property to need jumbo financing for the difference.
Frequently Asked Questions
What is the current conforming loan limit in Florida?
Conforming loan limits are set annually by the FHFA and vary by county. We can confirm the current limit for your specific area and help you determine whether jumbo financing is needed.
Are jumbo loan rates higher than conventional rates?
Not necessarily. While jumbo rates were historically higher, the spread has narrowed significantly. For well-qualified borrowers, jumbo rates can be very competitive with conforming options.
Can I get a jumbo loan with less than 20% down?
Some jumbo programs allow 10% to 15% down for borrowers with excellent credit and strong reserves. Availability depends on the loan amount and overall borrower profile.
Can self-employed borrowers qualify for jumbo loans?
Yes. Self-employed borrowers can qualify with proper documentation including two years of tax returns, year-to-date profit-and-loss statements, and business bank statements. Strong reserves help strengthen the application.
Explore Jumbo Financing Options
Purchasing above the conforming limit? Let us review your situation and outline what jumbo programs may be available to you.
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