Parkland buyers, what do you need to get a Jumbo Mortgage?
Parkland homebuyers, in my last article, with the assistance of my preferred lender, Justin Miller of Fembi Mortgage, I explained why lenders are extremely cautious ( it may be argued, overly) when approving a home loan. We learned the appraisal of the property can, indeed, become a deal breaker, and we understand why.
We also understand, as future Parkland residents, the homes we intend to purchase will be more expensive than most S. Florida homes, requiring us to obtain “Jumbo” mortgages. With all the added precautions by lenders, we can’t help but ask ourselves, “How difficult will it be to get a jumbo mortgage?”.
In order to provide you with the best answer, I posed the question to Justin, and here’s his answer:
A Jumbo Mortgage is any amount above the conforming loan limits for that county. Since Parkland is located in Broward County, the limit for conforming loans in Parkland at this time is $423,750….any amount over that is a Jumbo Mortgage.
The documentation requirements really aren’t that much different than getting any other loan. You’ll need the following documentation:
* Most recent paystub
* 2 years of W-2s
* 2 year of Personal Tax Returns (Form 1040 with all pages)
* If you are self-employed, you will need 3 years of your personal and your corporate tax returns.
* 2 most recent bank/brokerage statements with all pages…even if they are blank.
This is a must to get upfront when being pre-qualified. You may think you make $X per year but the way we have to calculate income might be different. This is so important because if this is not done from the beginning there is a lot of time and money that will be lost for the borrower and everyone else involved in the transaction. You need to listen to your mortgage professional because if they do not do their job correctly it affects many other people with a financial stake in the transaction.
In Parkland and South Florida you will need to put down at least 20%. Every lender out there has different rules. It is always best to have a credit score of 740 or higher. You can get a loan with as low as a 620 credit score but the interest rates and down payment are going to be higher. You can typically get away with putting 20% down on loan amounts up to $1 million and depending on the strength of the loan, up to $2 million on a primary residence. Anything above that will most likely have higher down payment requirements.