A jumbo loan is a type of mortgage loan that exceeds the loan limits set by Fannie Mae and Freddie Mac, the two government-sponsored enterprises that buy and guarantee most conventional mortgages in the United States. Each county will have a different maximum conforming loan limit. Loans that exceed this limit are considered jumbo loans.

Because jumbo loans exceed the loan limits for conventional mortgages, they are considered higher risk and typically have stricter eligibility requirements. Borrowers may need to have a higher credit score, a larger down payment, and a lower debt-to-income ratio to qualify for a jumbo loan. Additionally, jumbo loans often have higher interest rates compared to conventional loans, which can result in higher monthly payments.

Jumbo loans are often used by homebuyers who are looking to purchase high-value properties in expensive housing markets, such as California, New York, or Hawaii. They can also be used to finance second homes or investment properties. If you’re considering a jumbo loan, it’s important to do your research and work with a reputable lender to ensure you understand the terms of the loan and can afford the monthly payments. Reach out to a Valiant Mortgage loan officer today!

Here are the 2023 conforming loan limits for Florida:

COUNTY	2023 One-Unit LOAN LIMIT	2023 Two-Unit LOAN LIMIT	2023 Three-Unit LOAN LIMIT	2023 Four-Unit LOAN LIMIT
Alachua	$726,200	$929,850	$1,123,900	$1,396,800
Baker	$726,200	$929,850	$1,123,900	$1,396,800
Bay	$726,200	$929,850	$1,123,900	$1,396,800
Bradford	$726,200	$929,850	$1,123,900	$1,396,800
Brevard	$726,200	$929,850	$1,123,900	$1,396,800
Broward	$726,200	$929,850	$1,123,900	$1,396,800
Calhoun	$726,200	$929,850	$1,123,900	$1,396,800
Charlotte	$726,200	$929,850	$1,123,900	$1,396,800
Citrus	$726,200	$929,850	$1,123,900	$1,396,800
Clay	$726,200	$929,850	$1,123,900	$1,396,800
Collier	$726,200	$929,850	$1,123,900	$1,396,800
Columbia	$726,200	$929,850	$1,123,900	$1,396,800
Desoto	$726,200	$929,850	$1,123,900	$1,396,800
Dixie	$726,200	$929,850	$1,123,900	$1,396,800
Duval	$726,200	$929,850	$1,123,900	$1,396,800
Escambia	$726,200	$929,850	$1,123,900	$1,396,800
Flagler	$726,200	$929,850	$1,123,900	$1,396,800
Franklin	$726,200	$929,850	$1,123,900	$1,396,800
Gadsden	$726,200	$929,850	$1,123,900	$1,396,800
Gilchrist	$726,200	$929,850	$1,123,900	$1,396,800
Glades	$726,200	$929,850	$1,123,900	$1,396,800
Gulf	$726,200	$929,850	$1,123,900	$1,396,800
Hamilton	$726,200	$929,850	$1,123,900	$1,396,800
Hardee	$726,200	$929,850	$1,123,900	$1,396,800
Hendry	$726,200	$929,850	$1,123,900	$1,396,800
Hernando	$726,200	$929,850	$1,123,900	$1,396,800
Highlands	$726,200	$929,850	$1,123,900	$1,396,800
Hillsborough	$726,200	$929,850	$1,123,900	$1,396,800
Holmes	$726,200	$929,850	$1,123,900	$1,396,800
Indian River	$726,200	$929,850	$1,123,900	$1,396,800
Jackson	$726,200	$929,850	$1,123,900	$1,396,800
Jefferson	$726,200	$929,850	$1,123,900	$1,396,800
Lafayette	$726,200	$929,850	$1,123,900	$1,396,800
Lake	$726,200	$929,850	$1,123,900	$1,396,800
Lee	$726,200	$929,850	$1,123,900	$1,396,800
Leon	$726,200	$929,850	$1,123,900	$1,396,800
Levy	$726,200	$929,850	$1,123,900	$1,396,800
Liberty	$726,200	$929,850	$1,123,900	$1,396,800
Madison	$726,200	$929,850	$1,123,900	$1,396,800
Manatee	$726,200	$929,850	$1,123,900	$1,396,800
Marion	$726,200	$929,850	$1,123,900	$1,396,800
Martin	$726,200	$929,850	$1,123,900	$1,396,800
Miami-Dade	$726,200	$929,850	$1,123,900	$1,396,800
Monroe	$874,000	$1,118,900	$1,352,450	$1,680,800
Nassau	$726,200	$929,850	$1,123,900	$1,396,800
Okaloosa	$726,200	$929,850	$1,123,900	$1,396,800
Okeechobee	$726,200	$929,850	$1,123,900	$1,396,800
Orange	$726,200	$929,850	$1,123,900	$1,396,800
Osceola	$726,200	$929,850	$1,123,900	$1,396,800
Palm Beach	$726,200	$929,850	$1,123,900	$1,396,800
Pasco	$726,200	$929,850	$1,123,900	$1,396,800
Pinellas	$726,200	$929,850	$1,123,900	$1,396,800
Polk	$726,200	$929,850	$1,123,900	$1,396,800
Putnam	$726,200	$929,850	$1,123,900	$1,396,800
St. Johns	$726,200	$929,850	$1,123,900	$1,396,800
St. Lucie	$726,200	$929,850	$1,123,900	$1,396,800
Santa Rosa	$726,200	$929,850	$1,123,900	$1,396,800
Sarasota	$726,200	$929,850	$1,123,900	$1,396,800
Seminole	$726,200	$929,850	$1,123,900	$1,396,800
Sumter	$726,200	$929,850	$1,123,900	$1,396,800
Suwannee	$726,200	$929,850	$1,123,900	$1,396,800
Taylor	$726,200	$929,850	$1,123,900	$1,396,800
Union	$726,200	$929,850	$1,123,900	$1,396,800
Volusia	$726,200	$929,850	$1,123,900	$1,396,800
Wakulla	$726,200	$929,850	$1,123,900	$1,396,800
Walton	$726,200	$929,850	$1,123,900	$1,396,800
Washington	$726,200	$929,850	$1,123,900	$1,396,800

The FHA is one of the largest mortgage insurers in the world. Created by congress in 1934, they’ve insured over 50 million mortgages in the nation. FHA loans are mortgages guaranteed by the Federal Housing Administration (FHA) and are typically easier to qualify for than Conventional loans. At the time of the FHA’s inception only 1 in 10 households were homeowners. America was mostly a nation of renters. Loan terms were difficult to meet for homebuyers seeking mortgages, loan terms were limited to only 50 percent of the property’s market value and repayment terms were demanding. Since its establishment, FHA loans, have helped to prop up the housing market and helped homeownership possible for many families.

The Federal Housing Administration (FHA) is part of the U.S. Department of Housing and Urban Development. They only provide mortgage insurance on loans made by FHA-approved lenders. They insure mortgages on single family homes, multifamily properties, residential care facilities, and hospitals throughout the United States and its territories.

Purchasing a Home with an FHA Loan

Here are some facts about FHA loans that can help you decide if the program is right for you.

To qualify for insurance, loans must meet certain requirements.

Lower Down Payments

They have lower down payments and are accessible to borrowers of all income levels. Down payment options are as low as 3.5%. Plus, your entire down payment, including closing costs, can be covered with gift funds.

Lower Credit Scored

An FHA loan can be ideal for first-time homebuyers or borrowers who have challenging credit. FHA mortgage insurance protects lenders against losses should a property owner fail to pay the loan. Since lenders take on less risk, they can offer more mortgages to homebuyers. FICO(R) Scores as low as 580 for certain purchase loans may be accepted.

Debt-to-Income

Your debt-to-income ratio doesn’t have to be as low as with a Conventional mortgage, and reserve funds aren’t generally required.

Mortgage Insurance Premiums (MIP)

The FHA does collect mortgage insurance premiums (MIP) from borrowers via their lenders. For conventional loans, you are often required to pay a monthly Private Mortgage Insurance of approximately 0.5-2.0% of the loan amount, but only if you make a down payment of less than 20%. With an FHA loan you are required to pay MIP no matter what. The MIPs are used to operate the FHA’s mortgage insurance programs for the benefit of future homebuyers, renters, and communities. This needs to be considered as does add to the cost of the loan. In addition to the annual premium on the loan amount, FHA loans carry an upfront premium of the total loan amount. This, of course, is the trade-off most people who would not otherwise qualify for a mortgage.

Occupancy

If you obtain an FHA loan you must certify that you will personally live in the property as your primary residence. In addition, the property must be appraised by an FHA-approved appraiser and meet property guidelines set forth by the U.S. Department of Housing and Urban Development (HUD). FHA appraisal requirements are more strict than conventional appraisal requirements.

Options with an FHA Loan

There are other types of loans that exist under the FHA program.

FHA 203(k)

FHA loans are a wonderful option if you’re purchasing an older home or a home that needs some TLC. Through the FHA 203(k) program, you can finance the cost of the upgrades through your mortgage, instead of having to pay for repairs in cash or through more expensive options like a credit card or personal loan which carry higher interest rates.

Refinancing

Refinancing with an FHA loan is also possible. If your credit is lacking, but you want to save a little money, the FHA Streamline Refinance program might be the way to go. If you’ve kept up with your current monthly payments for at least a year, you can apply for a refi without having your income, employment, or credit verified.

 

A USDA loan is a mortgage loan that is guaranteed by the United States Department of Agriculture (USDA) and is available to eligible borrowers in rural areas. The purpose of USDA loans is to encourage rural development and homeownership by offering affordable financing with flexible eligibility requirements.

USDA loans are available for both purchase and refinance of primary residences, and they offer several benefits to eligible borrowers, including:

1. No down payment requirement: USDA loans do not require a down payment, which can make it easier for eligible borrowers to buy a home.
2. Low interest rates: USDA loans typically have lower interest rates compared to conventional loans, which can result in lower monthly payments.
3. Flexible credit requirements: USDA loans have more relaxed credit requirements compared to conventional loans, making it easier for some borrowers to qualify.
4. No mortgage insurance: Unlike FHA and conventional loans, USDA loans do not require mortgage insurance, which can result in significant savings over the life of the loan.

To be eligible for a USDA loan, the property must be located in a designated rural area, and the borrower must meet certain income requirements. The exact requirements can vary depending on the specific loan program and the borrower’s circumstances, reach out to discuss with a Valiant Mortgage loan officer today!

When applying for a mortgage, it’s important to be careful about your financial decisions to avoid jeopardizing your chances of approval. Here are some things you should not do when applying for a mortgage:

1. Don’t apply for new credit: Every time you apply for new credit, it can temporarily lower your credit score. Avoid applying for new credit cards or loans while you’re in the process of applying for a mortgage.
2. Don’t make large purchases: Making large purchases, such as a new car or expensive furniture, can increase your debt-to-income ratio and affect your ability to qualify for a mortgage. Wait until after your mortgage has been approved before making any big purchases.
3. Don’t change jobs: Lenders prefer borrowers who have a stable employment history. If you’re considering changing jobs, it’s best to do so after you’ve secured your mortgage.
4. Don’t miss payments: Late payments can have a negative impact on your credit score and your ability to get approved for a mortgage. Make sure you continue to make all of your payments on time, including credit card payments, car payments, and other bills.
5. Don’t close credit accounts: Closing credit accounts can affect your credit utilization ratio and lower your credit score. It’s best to keep your credit accounts open, even if you’re not using them.
6. Don’t withhold information: Be honest and upfront with your lender about your financial situation. Failing to disclose important information can result in your mortgage application being denied or delayed.

By avoiding these common mistakes, you can help ensure a smoother and more successful mortgage application process. Don’t hesitate to reach out to a loan officer with Valiant Mortgage Group to help navigate the home buying process.

There are several first-time home buyer programs available in Florida that can help make buying a home more affordable. Here are a few options:

1. Florida Housing First Time Homebuyer Program: This program offers low-interest, fixed-rate mortgages to first-time home buyers who meet income and other eligibility requirements. It also offers down payment and closing cost assistance to eligible borrowers.
2. State Housing Initiatives Partnership (SHIP) Program: This program provides funds to local governments and nonprofit organizations to help eligible first-time home buyers with down payment and closing cost assistance.
3. Florida Assist Second Mortgage Program: This program offers eligible borrowers a second mortgage to help cover the down payment and closing costs associated with buying a home.
4. Homeownership Pool (HOP) Program: This program provides down payment assistance to eligible first-time home buyers who are purchasing a home in a designated area.
5. Federal Housing Administration (FHA) loans: FHA loans are backed by the federal government and offer low down payment options to eligible borrowers, making it easier for first-time home buyers to qualify for a mortgage.

These are just a few of the many first-time home buyer programs available in Florida. Reach out to us today to discuss options!

The credit score used for a mortgage will depend on the type of loan you are applying for and the lender’s specific requirements. In general, most lenders use the FICO credit score, which ranges from 300 to 850, to determine a borrower’s creditworthiness.

For a conventional mortgage loan, most lenders require a minimum credit score of 620. However, some lenders may require a higher score, particularly if you are seeking a jumbo loan or a loan with a low down payment.

For FHA loans, which are insured by the Federal Housing Administration, the minimum credit score requirement is typically 580, but as low as 500(a higher down payment will be required). However, some lenders may require a higher score, depending on the borrower’s specific circumstances.

For VA loans, which are guaranteed by the Department of Veterans Affairs, there is no official minimum credit score requirement. However, most lenders require a score of at least 620 or 640.

It’s important to note that credit scores are not the only factor lenders consider when evaluating a mortgage application. They will also look at factors such as your income, employment history, debt-to-income ratio, and other financial factors to determine your ability to repay the loan.