5% down payment Florida jumbo loans are back. These new 95% jumbo loan programs allow home buyers to obtain mortgage financing that exceed the conforming loan limits set by Fannie Mae and Freddie Mac. With interest rates so low some home buyers would like to consider a jumbo loan to get more house for their money. Even better is the 5% Florida jumbo loan does not require monthly mortgage insurance like many other loans with a low down payment. Below we take a brief look at the jumbo loan basics and discuss all the things you need to know.
NOTE: As of 2017, the 5% and 10% down options below are available in all 50 states.
First, a jumbo mortgage is a home loan that exceeds the typical lending limits of the Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), the Federal Housing Administration (FHA) or the Veterans Administration. Loans sold to either Fannie or Freddie are called conventional loans or conforming loans because the mortgage amount “conforms” to the underwriting guidelines and lending limit of these companies. Loans above the following limits are called jumbo loans ( there are expectations in higher cost locations)
- 1-unit home – $417,000
- 2-units (duplex) – $533,850
- 3-units – $645,300
- 4-units – $801,950
Until recently, jumbo home buyers had to put 10-20% down if they wanted to purchase a home and borrow over the conventional loan limit of $417k. Our new 5% down Jumbo mortgage with no monthly PMI is a great financing option for Florida borrowers who want to purchase a home or refinance. This program will allow Florida buyers to purchase a home up to $850k with only 5% down, and have the option of No monthly PMI. There are not many banks, lenders or mortgage companies offer this program today. This is especially good for borrowers in higher priced luxury location like Miami, West Palm Beach, Naples, Coral Gables, Jupiter, Sarasota, Boca Raton, Cape Coral, St. Petersburg, Tampa, Orlando, etc.
A few notes for the 5% down payment Jumbo loans:
- 95% loan to value financing is only available for borrower that can fully document income, assets, etc.
- For borrowers that cannot do full documentation, please check into our non-conventional loan programs here.
- To obtain the max 95% financing, borrowers will need a 680+ credit score.
- The program can be used to purchase a single family home, townhome or condo.
- Jumbo interest rates can vary based on the term and credit score. Borrowers will choose between secure fixed rate options or adjustable rate terms (ARM)
- Applicants can choose an interest rate buy down, or reduced closing costs options.
- Second homes, vacations home and investment property purchases are permitted, but will require a slightly higher down payment of 10% down or more.
- Jumbo rate-term, plus cash out refinance options are available for home owners that already have a high-cost mortgage.
- Higher loan amounts available. Up to 90% LTV financing to $2,500,000 with 720+ credit score. Up to 85% LTV financing to $3,000,000 with 720+ credit score. Please contact us if you are financing over 3 mil.
Update March 2016 – please note buyers can now finance up to 95% to $1,000,000 loan amounts. 1st and 2nd mortgage combo up to 95% LTV.
Five Stars is national Jumbo loan resource. We have specialist standing by 7 days a week to serve you. Please call ph: 800-871-2636, or just submit the “Request Information” form located at the top of this page.