Thursday, April 17, 2014

Jumbo Loans in Miami and all of Florida

A loan is considered a jumbo loan when it exceeds the conventional loan limits set by government sponsored lending enterprises known as Fannie Mae and Freddie Mac.  Those looking to finance a home in Florida with a jumbo loan should expect higher interest rates than a typical conforming loan.

In an effort to help economic recovery, President George W. Bush signed the Housing Economic Recovery Act of 2008 into law which temporarily increased the loan limits for jumbo loans to $729,750 or 125% of the median home value in a given area depending on which is lower.

These higher limits were originally meant to expire after 2008 but were extended through 2010.  Increasing loan limits was meant to lower interest rates, but it was not as successful as expected.  The jumbo loan limits were lowered back to normal in 2011.

Interest rates for jumbo loans are based on a variety of factors, the most important of which is the risk to the lender.  Jumbo loans typically require higher interest rates and down payments due to higher risk.

The risk is higher because if a jumbo loan defaults, it is more difficult to sell a higher valued property quickly for its full value.  Also properties with higher values are more vulnerable to market value fluctuations. For these reasons, lenders typically require borrowers to pay a higher down payment.

Borrowers looking to finance a home  with a Florida Jumbo Loan will normally be required to meet higher requirements on parameters such as debt-to-income ratio, value of all assets, and FICO credit score.  Jumbo loan and FHA loan limits in Florida vary by county. Most Florida counties have a Fannie Mae and Freddie Mac loan limit of $417,000. Any loan size greater than this conforming loan limit is categorized as a Jumbo loan. See the chart below for FHA and Fannie Mae loan limits for each county in Florida.

Florida Jumbo Loan Limits by County

County Name               FHA Loan Limit           Fannie Mae Conforming Loan Limit

Broward                              $423,750                                      $417,000
Collier                                 $531,250                                      $448,500
Manatee                             $442,500                                      $417,000
Miami-Dade                        $423,750                                      $417,000
Monroe                               $729,750                                      $529,000
Palm Beach                        $423,750                                      $417,000
Sarasota                             $442,500                                      $417,000

Here at Continental Mortgage, we specialize in providing potential borrowers the information needed to make the right decision when financing a home.  Although we are located in Miami Beach, we dedicate ourselves to providing some of the most competitive jumbo loan rates throughout the entire state of Florida.

Click here for a free quote to see how much you qualify for!

Friday, July 29, 2011

Florida Foreign National Loans

Foreign Nationals have become the predominant purchasers of Miami real estate in recent years. Realtors are reporting that an estimated 60% of all residential real estate sales in Miami and Miami Beach are from individuals who are not US citizens - commonly referred to as Foreign Nationals. Although many are cash buyers, an increasingly large segment are seeking mortgages due to the low interest rates offered in the US compared to rates in their own countries.
Typical terms require the Foreign National buyer to have a down payment of 30% to 40% but interest rates are usually below 5% which is much more attractive than what is available in most other countries.
One of the most popular Foreign National mortgage lenders in Miami is Continental Mortgage based in Miami Beach, Florida. They cater to Foreign National buyers seeking mortgages throughout Florida. Click here to see their documentation requirements for Foreign Nationals. Getting approved is easy and relatively fast....usually less than a month. Foreign Nationals are also taking advantage of the new lower real estate prices in Ft Lauderdale, Palm Beach, Orlando and Naples.