High Priced Homes In Florida Need A Jumbo Mortgage Loan
Just like the name implies, a jumbo home mortgage loan is a really, extremely large home mortgage. Basically a jumbo mortgage loan in Florida is a big home loan where the amount that is borrowed is higher than the amount set by the Government Sponsored Enterprises (GSE) who set these standards for this loan type. The usual amount set for a jumbo mortgage by the GSE is $600,000.
If a home mortgage loan is higher than $600,000 then it is classified as a jumbo mortgage loan in Florida. In Florida, there are a lot of houses that cost more than that to purchase and as these home prices have actually increased over the last few years, the same has happened to jumbo home loan amounts.
There are some dangers with high priced homes; which can usually take a little longer to close than a lower priced home. If the home owner happens to have a bit of a financial issue and needs to sell their home, it could take much longer to receive and offer and sell that home. Because of the larger risk with jumbo home loans in Florida, lots of lending institutions will want a larger down payment and higher interest rates to mitigate this risk.
With any home loan that is above the GSE’s standard amount of $600,000 the interest rates will be greater. With any typical home loan in Florida, a home buyer can usually get a mortgage with no money down, however this is not the case with a jumbo home mortgage due to the fact that the risk is greater. A jumbo home loan will definitely need a deposit, then the entire process of applying for this loan becomes similar as the one for any other home loan. If you fall in love with a house that is in the higher than conventional price range, only a jumbo mortgage loan will do. If you have good credit, and you have cash for a deposit and can also meet the repayments requirements, then you will have no problem getting the jumbo home mortgage loan you need.