Cape Coral and the surrounding area have many beautiful homes for sale, but some of them may require you to borrow more than is possible with a conventional mortgage.
If that is the case, we can help you apply for the financing you need with a Florida jumbo mortgage.
What is a Jumbo Loan?
A jumbo mortgage is the type of loan that you need when you are borrowing about the Fannie Mae and Freddie Mac conventional mortgage limits.
While you do need a competitive borrower profile to qualify for a jumbo loan, the application process can be fast and easy when you work with the right mortgage company.
When is a Jumbo Loan in Florida Required?
You need a jumbo loan when you need to borrow above the conforming loan limits for your county.
Most Florida counties share the same conventional loan limits which apply to the majority of counties throughout the country.
That includes Lee County, where Cape Coral and Fort Myers are located, Pinellas County, where St. Petersburg is located, and Miami-Dade County. Here are the conforming loan limits for those counties:
One unit:
$510,400
Two units:
$653,550
Three units:
$789,950
Four units:
$981,700
If you are borrowing within those limits, you may qualify for a conventional loan. Otherwise, a jumbo loan may be appropriate.
Do You Qualify for a Florida Jumbo Mortgage?
Qualifying for a jumbo mortgage is not so different from qualifying for a conventional home loan:
- Your credit score and DTI ratio will be assessed. You are most likely to qualify if both are competitive. At a minimum, your credit score should be 680. More ideally, it should be 720 or above.
- You will need to make a down payment when you buy a home with a conventional loan. If you have solid qualifications, however, that down payment could be as low as 5%.
- You will have to get two appraisals of the property you are purchasing in many cases.
- You need to demonstrate that you have a minimum of 6 months of cash reserves. With more substantial loans, this requirement can increase.
