Tampa remains one of Florida’s most popular cities, offering a vibrant lifestyle and plenty of opportunities for growth. As the third largest city in the state, Tampa boasts a diverse population and thriving economy.
The real estate market in Tampa has been on an upward trend in recent years, making it an attractive location for home buyers. The city offers a variety of neighborhoods to choose from, ranging from historic homes to modern developments. Whether you’re looking for a single-family home or a luxury condo, there’s something for everyone in Tampa.
One particular area that has seen significant growth is the jumbo mortgage market. Jumbo mortgages are loans that exceed the conforming loan limits set by Fannie Mae and Freddie Mac, which currently stand at $766,550 in most counties including Hillsborough, Pinellas, Manatee, and Pasco County. The median home price in Tampa and St. Petersburg currently sits around $375,000, so for most homebuyers a standard conventional loan will provide sufficient financing.
But what about homebuyers purchasing in more luxury or waterfront locations in Tampa or St. Pete? Most of these more expensive homes can easily exceed $1m purchase prices, so cases like this may require a Jumbo mortgage.
Tampa Jumbo Loan Limits and Down Payment Breakdown:
Tampa Jumbo Loan Limits and Down Payment Breakdown: The Jumbo loan limits are primarily based on the down payment amount and credit profile of the home buyer, below we will break down the most recent requirements. Please be sure to visit the Jumbo Purchase page for more details. New options are available up to 95% financing for qualified buyers.
5% down payment: Loan limits are generally $1.5m
10% down payment: Loan limits are generally $2-2.5m
15% down payment: Loan limits are generally $3.5m
*Higher loan amounts are available for home buyers that have 20% or more down payment.
All the requirements above apply to owner occupied primary homes. For secondary and investment properties, the Jumbo loan limits may be lower and require a higher down payment. It is best to consult with us for specific details and options on these property types.
In addition to down payment requirements, Jumbo loans also have stricter credit score criteria. Generally, a minimum credit score of 680 is required for max 95% Jumbo financing. However, lower scores are permitted from buyers that have 10%+ down payment or additional compensating factors such as larger payment reserves or a strong income/employment history.
It’s important to note that Jumbo loans are not backed by government agencies like FHA or VA. They are considered riskier for lenders since they exceed conforming loan limits set by Fannie Mae and Freddie Mac. As a result, interest rates on Jumbo loans can be slightly higher than those of traditional mortgages.
However, new combo loan (piggyback) options are often utilized in an effort to keep the borrowers primary mortgage at or below the conforming loan limit. By doing this, buyers can take advantage of lower interest rates on their primary 1st mortgage, and use a smaller second loan (HELOC) to make up the difference. Doing this also eliminates the need for monthly mortgage insurance (PMI) something very helpful for buyers with less than 20% down payment. This alone can save buyers hundreds on their monthly mortgage payment.
Jumbo Loan Application and Documentation Notes:
Jumbo Loan Application and Documentation Notes: - All the options listed require full income & asset documentation, much the same as conventional loans. *Special bank statement qualifying options are available for self-employed buyers, but these programs are limited to 90% financing.
- Veterans have special VA Jumbo options available up to 100% financing.
- Buyers should have adequate mortgage payment reserves. The number of reserves will depend on the loan amount, down payment and credit profile of the buyer(s) Generally 3–6 months of reserves will be required for loans below $1.5m, this requirement can be satisfied with non-liquid retirement accounts.
- All program terms include the common 15-30 year fix rate options. Along with common adjustable rate (ARM) terms in 3,5,7, or 10 year. Terms are fully amortized with no negative amortization options.
- Property types include standard single family, town homes and most condos. Land and lot loans are not permitted.
- Jumbo refinance programs are available, please see details in the page above.
Please connect with us 7 days a week to learn more about any of the programs listed. Just call the number above, or just submit the Quick Contact Form on this page.