New Jumbo options now permit approved home buyers to finance up to 95% Loan to value for home loan amounts up to $1.5 million. The 5% down Jumbo mortgage options in Miami – Dade are currently available for both home purchases and Jumbo refinance.

Mortgages are considered “Jumbo” if it exceeds the conforming and FHA mortgage limit, which in most cases is anything over $647,200 for a single-family home in Florida. Monroe County and the Keys is the only exception that allows for conforming loan amounts a bit higher to $710,700.

“Conforming” refers to the limits imposed by Fannie Mae and Freddie Mac, the government organizations that buy mortgages from banks and lenders. Because these larger “jumbo” loans cannot be sold to these enterprises, they have to be held by the lender, whether it be a bank or private entity.

Since jumbo loans are not guaranteed by Fannie Mae or Freddie Mac, the risk is higher, so the rates have tended to be higher, though that gap has narrowed in the last few years. Even if and when they are higher, it is by a small amount. Depending on the loan to value of the borrower’s loan, it can be near the same.

To be clear, a jumbo mortgage is one that is above $647,200, but that does not mean the home being purchased is that amount. We’re talking about the amount of the loan. So, for instance, if you purchased a home in Miami for $525,000 and put down 20 percent ($105,000), your $420,000 loan amount would not be considered Jumbo.

Buyers should be aware of the Jumbo loan qualifying criteria below:

95% financing is capped to $2,000,000 loan amounts (min 700 credit score)
90% financing is capped to $3,000,000 loan amounts (min 720 credit score)
The home being purchased must be a primary or second home.
Most condos are approved
Borrowers must properly document their income and assets – no stated income type loans permitted
Borrowers should be able to document a minimum of 3-9 months payment reserves after down payment and closing costs have been made. The exact amount will depend on down payment and credit
Borrowers must be U.S. citizens

There are single loan and combo (80-15 and 80-10) options available depending on the LTV and credit. Borrowers will also be able to choose from an adjustable-rate ARM and fix rate options.

These options are available to homebuyers nationwide, including Florida: Miami, Dade County, Broward County, West Palm Beach. Please contact us with questions by calling Ph: 800-962-0677 or just submit the Quick Contact form on this page ( Mobile users will find the form at the bottom of this page)