Jumbo Loan Minimum Down Payment in Florida
The Jumbo Loan Minimum Down Payment rates have dropped lately for several reasons:
- Lower interest rates in Florida
- Lenders want high income earners as clients in Florida
- Fewer homes for sale in Florida
Lower Interest Rates
As the economy forces interest rates down in Florida, the payment you are left with is lower, too. Consider the price of your new Florida home, and subtract the jumbo loan minimum down payment. The lower interest rate on the remaining amount leaves a lower payment. That means a larger loan is more affordable.
When calculating your DTI (Debt to Income) ratio, the lender compares your payment to your income. With a DTI of 43% or less you can qualify for a jumbo loan. That means that your payment has to add up to less than 43% of your pretax income.
The lower the interest rate, the lower the payment. The lower the payment, the greater the loan amount. So, your jumbo loan minimum down payment becomes directly connected to the interest rate.
Lenders Want High Income Earners as Clients
A jumbo loan minimum down payment option often appeals to a high income earner, with fewer cash reserves. You still need to demonstrate cash reserves of 6 months or more to qualify. But, you don’t have enough cash to just purchase the million dollar home outright. Yet.
Lenders know that those who are looking for jumbo loan minimum down payments have solid credit. You won’t even look at a property that is worth over $500,000 if you don’t have some success behind you.
So, the lenders are looking at offering other services to you, as a high earner. Fair enough.
Fewer Homes for Sale in Florida
In some areas of Florida there are significantly fewer homes for sale this year. Every real estate market is local, so some of Florida markets are better than others. The biggest cities are most likely to have a better supply than last year. Overall, there are about 5% fewer houses for sale compared to a year ago.
Now there are lower interest rates, fewer homes for sale, and lenders are looking to entice high income earners. Jumbo loan minimum down payments are your way to have the freedom get the luxury home you want.