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.
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