4 Things a Ponte Vedra Beach Borrower Should Know About Jumbo Mortgages

by | Aug 12, 2022 | Investments

If you are looking into high-end properties, a jumbo mortgage in Ponte Vedra Beach might suit your needs. These home loans help people borrow more money than the Federal Housing Finance Agency (FHFA) backs. To qualify for this product, an individual must meet different financial standards than a person applying for a federally backed mortgage.


Because of the loan size, an applicant must have a very high credit score and a strong credit history. From the lender’s standpoint, there are many risks involved in these transactions because Fannie Mae or Freddie Mac will not secure them. A borrower will likely need a credit score of at least 700.


Before applying for a jumbo mortgage in Ponte Vedra Beach, make sure you have very little debt. The underwriters will be looking for high income and low debt. The lenders will compare your reported income to your other obligations. Many organizations like to see a debt-to-income ratio (DTI) around 40%, and some require a DTI near 35%.

Interest Rates

The interest rates on jumbo loans are slightly higher than traditional mortgages. In the past, larger loans came with jumbo interest rates, but that has changed. Today, some jumbo rates are close to a 30-year mortgage rate.

Down Payment

A buyer will need some money down, but the amounts vary. Some lenders require 20% down while others are more lenient and only need 15%. For more information on jumbo mortgages in Ponte Vedra Beach, visit The Mortgage Lady Team-Fairway Independent Mortgage Corporation at themortgageladyteamfairway.com

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