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Florida Million Mortgage Loan
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Florida Million Mortgage Loan - $2.5MM to $45 Million Mortgage loan programs are very popular with luxury home owners in FloridaFlorida million mortgage loans are common due the high value of homes located in Florida. Lenders are willing to provide super jumbo loans to borrowers with a good credit history and at lower LTVS.
Jupiter Island real estate values often demand that borrowers seek $2+ Million Mortgage loan programs to purchase or refinance their property.
Miami Beach is home to what is arguably the state of Florida's most expensive zip code, 33109, where the median sale price of a home is nearly $2 Million. It's no wonder why Miami Beach homeowners lead the state of Florida in the number of $2+ Million Mortgage loans.
Million Mortgage Loan - $1 Million Mortgage Loan to $40 Million Mortgage Loan programs are referred to in the lending industry by the terms "super jumbo mortgage" or even "mega jumbo loan"
Jumbo mortgages are loans which exceed the Fannie Mae and Freddie Mac conforming loan amount limits. This is why Jumbo loans and super jumbo mortgages are often referred to as "non-conforming" jumbo loans or super jumbo mortgages. The jumbo mortgage limits for residential properties are as follows:
2007 Fannie Mae Conforming (non - Jumbo) Loan limits are as follows:
$417,000 Single Family Residence (SFR or 1-unit, most homes fall under this category)
$533,850 Two Family Residence (Duplex or 2-unit)
$645,300 Three Family Residence (Triplex or 3-unit)
$801,950 Four Family Residence (Quadplex or 4-unit)
Properties exceeding the abovementioned conforming loan limits are considered non conforming or Jumbo, super jumbo or mega jumbo for the purposes of the lending industry.
So what does this Jumbo Loan thing mean for $1 Million to $40 Million Mortgage Applicants?
Traditional, conventional lenders can write conforming, non-jumbo loans all day with relative impunity as Fannie Mae and Freddie Mac, large public/private-type institutional investors, will buy these loans so long as they meet very basic underwriting guidelines. So its very easy to get a non-Jumbo loan.
Regular Jumbo loans, from the conforming loan limit for the respective property type to about a $1 Million mortgage loan amount, are also relatively easy to sell toother banks and typical investors, and banks undertake more risk than they would on a conforming loan but not so much that they cannot efficiently underwrite these mortgages.
Where banks and other traditional, conventional mortgage lenders fall apart is on $1 Million to $40 Million mortgages. Because the traditional mortgage loan business requires lenders to be able to find a market to sell their mortgages so they can get back more money to write more loans, these banks and conventional institutions are very hesitant to undertake large loans unless the loan to value ratios are exceptionally low (meaning you borrow 50% or less of the value of the home). By virtue of this reluctance to write $1+ Million Mortgage Loans, these same lenders have very little experience executing these transactions, resulting in even more conservative loan qualifying criteria for Super jumbo mortgages. Add to that the fact that conventional lenders are set up primarily to serve the needs of "conforming" loan customers, which means they lack the personnel to handle complex multi million dollar real estate financing, and you can see why it is so hard to get an average mortgage broker, direct lender or bank to successfully execute a $1MM to $40 Million Mortgage loan.
So Who Handles Multi Million Dollar Mortgage Loan Financing?
$1MM to $1.5 Million Mortgage loan programs have some availability in the broader markets, however $2MM to $40 Million Mortgage loan products are almost exclusively the province of super jumbo mortgage specialists. Often drawn from the investment banking and hedge fund industries, these private firms handle the overwhelming majority of real estate financing for high net worth / high income borrowers. By bypassing the traditional lenders and banks and going straight to the underlying investors on Wall Street and otherwise, these private mortgage bankers and real estate financiers are capable of orchestrating complex transactions with significantly higher loan to value ratios than would otherwise be possible. A few are even able to allow 70%, 80%, 90% and even 100% financing (no money down) on $2MM to $40+ Million Mortgage Loans, by allowing you to use income producing assets which you retain control of in lieu of a down payment.
$1MM to $40 Million Mortgage Loan programs are available to borrowers in the following states:
Million Dollar Mortgages are available for the high net worth borrowers such as, but not limited to business executives, celebrities, professional sports stars, etc.
The average interest rates on jumbo mortgages are typically greater than is normal for conforming mortgages, and vary depending on property types and mortgage amount.
Loans over a 1 million dollars or super jumbo loans may require more verifications than smaller loan amounts. The higher the loan amount the higher the risk. More reserves may be required as well as higher fico scores.
One reason lenders prefer to have a higher down payment from jumbo loan seekers is the higher risk involved. Jumbo home prices can be more subjective and not as easily sold to a mainstream borrower, therefore many lenders may require two appraisals on a jumbo mortgage loan.
Negative Amortization Loan - Negative Amortization Loan programs, which were once available to only the wealthiest of a banks customers due to their ability to allow borrowers to defer interest, are now being marketed to more "conventional" self employed borrowers, business owners, and beneficiaries of passive income, investment income, rental income or even substantial bonus or commission income.
When they were originally introduced, negative amortization loan programs were marketed under names such as "deferred interest mortgage" or "payment cap ARM", which very accurately reflect the nature of these "neg-am" mortgages, which are very powerful tools intended for homeowners with a certain degree of financial sophistication. While reverse mortgages are one type of negative amortization loan, the sort which have received the most press and the widest number of names are the so called "pay option" negative amortization loan program, which allows borrowers to choose each month whether or not they will defer or pay down the interest due on their mortgage.
As negative amortization loans have entered the mainstream in recent years, they have shed their "technical" sounding names and have been marketed to consumers under a nearly countless number of different monikers.
Here is a list of some of the most popular names for negative amortization loan programs, compiled by mortgage professionals from across the industry, although no opinions are expressed or implied about these loans or the companies who market them. This is just a list of names for nagative amortization loan programs:
The negative amortization loan may increase your principal balance when your monthly payment is below the interest accrued on your loan that month.
Minimum Payment Option
Investor Loan
Minimum Payment Option ARM
Deferred Interest Loan.
GPM
Fixed Negative Amortization Loan
Graduated Payment Mortgage
OptPay ARM
1% Loan
1-1 Buydown (no negative amortization if buy down account is fully funded)
Option Payment
Scheduled Negative Amortization Loan
Fixed Rate Pick a Pay
Equity Builder
Neg-Am Loan
0.25% Option ARM
Interest Only (misnomer)
Quicken Smart Loan
Fixed Pick a Pay
Pick Your Payment
Secure Advantage
Deferred Interest Mortgage
Minimum Payment Loan
Pay Option
Negative Mortgage
1% Mortgage
Cash Flow Advantage
Cash Flow Construction Loan
Pay Option ARM
Fixed Option ARM
Power Option ARM
Flex Option
Flex Pay Option
Negative Amortization Mortgage
NegAm Home Loan
Cash Flow ARM
Flex 5
Secure Advantage
Payment Cap ARM
5 Year Fixed Pay Option
30 Year Fixed Rate Option ARM
Pick a Pay
Pick a Payment
Smart Choice
Smart 30 Mortgage
1 Month MTA
1 Month ARM
Self Employed Cash Flow Loan
Investor ARM
12 MAT Mortgage
Lower Than Interest Only
Managed Mortgage Amortization Loan
Pay Advantage Plus
MTA Option ARM
Fixed Rate Option ARM
Fixed Pay Option
Power Fixed 30
COSI ARM
One Percent Mortgage
Payment Advantage Mortgage
Deferred Interest Home Loan
3-2-1 Buydown (no negative amortization if buy down account is fully funded)
Reverse Mortgage
Monthly Adjustable Rate Mortgage
FlexPay
2-1 Buydown (no negative amortization if buy down account is fully funded)
Flexible Payment Loan
Negative Equity Loan
5 Year Cashflow Loan
Option ARM Loan - Option ARM mortgages, which allow borrows to defer or prepay interest at will by offering four monthly payment options, are known and marketed under a variety of names:
The following is an attempt to assemble a rather exhaustive list of all the names by which Option ARM mortgages and other mortgages with payment options are known:
5 Yr Hybrid Option Arm
5 Yr Fixed Option Arm
1 Month Option ARM
Flex 5
Neg Am Loan / NegAm Mortgage
Adjustable Rate Option ARM
Option Plus Loan
An Option ARM Loan may increase your principal owed due to negative amortization when the monthly payment is less than the interest accrued for the month. The loan will usually be recast when the pricipal rises to 110% of the beginning principal balance.
GPM
NegAm
Pay-Option ARM
If you are considering one of these loans, make sure you are living in an area with moderate gains and not using the minimum payment option every month because if you are making only a minimum payment you could possibly lose some of your equity due to negative amortization.
Hybrid ARM
Quicken loans smart choice loan
Pick A Payment
Flex Pay Option
Minimum Payment Option Mortgage
Pick Your Payment
Fixed Rate Pay Option
Power Option
Payment Advantage Mortgage
Cash Flow ARM
Cash Flow Option Loan
Negative Amortization Mortgage
Fixed Option ARM
COFI ARM
30 Year Fixed Option ARM
Quicken buyers advantage loan
Hybrid Option Arm
The Secure Option Arm
PayOption
Negative Mortgage
1 Month MTA Option ARM
Payment Option ARM
Secure Advantage Loan
Smart 30 Mortgage
Investor ARM or Investment ARM
COSI ARM
Deferred Interest Mortgage
Pay Option ARM
Option ARM
Fixed Rate Pick a Pay
1% Mortgage
One Percent Mortgage Solution
COFI, COSI, CODI ARM
Even thought the option ARM mortgage has many different names it is still essentially the same product from lender to lender.
Pick A Pay
30 Year Flex Pay Plus
Jumbo Home Loan - Getting home financing for a jumbo home loan is not always easy. The perameters and lending guidelines become more strict- assuming the borrower has more of an ability to afford a larger home mortgage than the typical home owner.
Jumbo loans will usually require 2 appraisals to confirm the value of hte collateral. This is done because Jumbo loans are considered riskier than conventional mortgages.
Super Jumbo mortgages, which are jumbo loans of $650,000 or more, may require multiple property valuations or appraisals prior to final approval.
Underwriting jumbo loan takes little longer than conforming loans because the lender might need to re assess the value of the property. The appraisal either need to go through the review done by the lender or order another appraisal done on the house. The lender wants to make sure that the value of the property is the fair market value
With a jumbo mortgage loan a borrower is going to pay a little bit higher interest rate than with a traditional conventional loan. Once a Loan exceeds the limits that are set by Fannie Mae and Freddie Mac, which is $417,000 as of 2006, the loan is considered a jumbo loan.
The reason that the interest rate is higher on jumbo loans, is because of the chance of default. The more money that the lender has invested in one particular property, the more risk that they also have invested in that property. More risk also equals a higher interest rate.
Jumbo loans have the same lending options as your conforming loans in regards to interest only, fixed rates, payment option arms, amortizing arms, and 100% financing.
Jumbo loans have different underwriting guidelines than the conventional loans do. The reason for this is that jumbos have to be packaged and sold differently in the secondary market. Investors in the secondary market want to protect themself from default on such large loan amounts.
While a jumbo loan may have a slightly higher interest rate and different underwriting criteria there are many options including subpime loans available even with lower credit scores.
Jumbo loan guidelines will usually require more in the area of assets or cash reserves than their conforming counterparts. Many borrowers use 401K accounts or other retirement accounts to satisfy these reserve requirements.
When the Jumbo loan amount is only a little higher than conforming loan limits, one can avoid pay the higher Jumbo interest rate by dividing the loan amount into two mortgages, one within the conforming limit and a second mortgage to make up the difference.
Another reason for the interest rate and underwriting differences with jumbo loans is that there are different buyers of these loans in the secondary market. There is a smaller pool of buyers because certain entities only buy conforming, or lower loan amount mortgages.
Your mortgage broker will have other large investors, such as insurance companies and banks, step in to fill the need, with maximum jumbo mortgage amounts going to the $1 million or $2 million range.
FHA Lending in the State of Florida - FHA mortgage loans are an excellent source of financing in the State of Florida. FHA loans are a government insured loan that tends to be a little more lenient credit-wise than traditional Fannie Mae financing. With purchase money financing with just 2.25% down and cash-out refinancing up to 95% of the value of your home, FHA mortgage financing may be your best loan choice. FHA financing also allows gift funds as the down payment for purchase money transactions. Contact your mortgage professional at (800)515-8443 or via e-mail at PrivateClient@RefinanceOne.net.
If you own a mobile or manufactured home on a permanent foundation in the State of Florida you may be eligible for FHA Financing. You must own the land as well and the mobile home must been constructed after June 15, 1976. FHA financing allows for singlewide, doublewide, and triplewide financing.
FHA allows for financing just 2 years after the discharge of a Chapter 7 Bankruptcy, provided you have re-established good credit. You may refinance out of a Current Chapter 13 Bankruptcy payment plan provided you have the trustee's permission, a timely mortgage history, and a timely payment history on your bankruptcy. You must have had the payment plan for at least 1 year.
The FHA loan limits in Florida for a single family residence range from approximately $200,000 to $362,000 depending on the county where you live. 2-4 Unit properties have higher loan limits.
If you opt for a 15 Year Fixed Mortgage on an FHA loan, your monthly Mortgage Insurance is discounted at a loan-to-value of 90% or greater. If you are borrowing less than 90% of your homes appraised value, you will not be required to pay monthly MI. This works particularly well for those looking to consolidate debts on a manufactured home.
Florida Mortgages for UK Nationals - If you are a UK national interested in taking advantage of the incredible values afforded by the large inventory of homes in Florida and the excellent Sterling to Dollar exchange rates at present, you will be pleased to know that dollar denominated mortgages for UK and other foreign nationals are available with only a passport for documentation. Thats right, no income or employment verification, with interest only rates from 1%.
Florida Mortgage Loans ( FL Mortgage ) - There are many mortgage loan programs available in the state of Florida. Some of the more common loan programs available for refinance or purchase are:
- 100% Financing
- 80/20 No MI
- 115% Cash Out Refinance
- First Time Home Buyer Programs
- Fannie Mae & Freddie Mac Loan Programs
- 40 Year Mortgage
- Non Conforming (Impaired Credit)
- Stated Income (No Income Verification)
- Bankruptcy Buyout
- Multi Unit Programs
Many other loan programs are available. If you have any questions about a loan program feel free to contact a mortgage consultant at (800)515-8443 or via email PrivateClient@RefinanceOne.net
Florida mortgage brokers - It is important to make sure that you are working with a licensed and professional mortgage broker. In the state of Florida you can contact the Florida Office of Financial Regulations to make sure the mortgage broker you are working with, or planning to work with, is licensed.
Call the Compliance and Licensing Division at 1-800-848-3792.
You can also check to see if your mortgage broker is licensed on their website at:ww.flofr.com/licensing/download.htm
To find out if you are working with an honest, reputable mortgage broker in the state of Florida you can contact the FAMB (Florida Association of Mortgage Brokers). All members are bound by a strict code of ethics to which they must adhere to continue their membership. You can contact the FAMB by calling 1-800-289-9983 or by visiting the online at famb.org.
Contact the NAMB (National Association of Mortgage Brokers) to find a reputable mortgage broker to do business with in your area of Florida. The NAMB has a strict code of ethics that its' members must abide by to continue their membership. The NAMB can be contacted by calling 703-342-5870 or visiting them online at namb.org.
Florida Down Payment Assistance Programs - Florida Down Payment Assistance Programs
Alachula County State Housing Initiatives Parnership Program (SHIP) $9,500 (352) 374-5249
Baker County- State Housing Initiatives Partnership (SHIP)
$5,000 (904) 259-3613
Bay County State Housing Initiatives Partnership Program (SHIP)
$15,660 (850) 234-6358
Boca Raton State Housing Initiatives Partnership Homebuyer Assistance Program (SHIP)
$40,000 (561) 393-7758
Bonita Springs Area Housing Development Corporation- SHIP Down Payment / Closing Cost Assistance (SHIP)
$15,000 (239) 652-7938
Bradenton Housing Assistance Program (HAP)
$4,000 (941) 714-7509
Brevard County First Time Home Buyer Program
$12,500 (321) 633-2075
Cape Coral Down Payment Assistance Program (DPAP)
$4,500 (239) 573-1222
Citrus County SHIP Downpayment Closing Costs Assistance Program (DCCAP)
$5,500 (352) 527-5377
Clearwater Down Payment/Closing Cost Assistance Program (DPCCA)
$15,000 (727) 562-4030
Columbia County State Housing Initiatives Partnership Program (SHIP)
$10,000 (386) 362-4115
Deltona SHIP Purchase Assistance Program
$22,000 (386) 561-2200
DeSoto County State Housing Initiative Program (SHIP)
$5,000 (863) 993-4858
Escambia County- SHIP Affordable Housing Initiative Program New Construction (AHIP)
$15,000 (850) 458-0464
Flagler County State HousingInitiatives Partnership Program (SHIP)
$10,000 (386) 437-7484
Gainesville Central Florida Community Action Agency, Inc. HOME Purchase Deferred Grant Assistance Program (HOME)
$40,000 (352) 373-7667
Gainesville Neighborhood Housing & Development Corporation (NHDC) HOME Subsidy Program (HSP)
$10,000 (352) 380-9112
Gainesville SHIP Downpayment Assistance Program (SHIP)
$3,500 (352) 334-5026
Hardee County, State Housing Initiatives Partnership Home Ownership Assistance Program (SHIP)
$5,000 (863) 773-6349
Hendry County State Housing Initiative Partnership Program (SHIP)
$15,000 (863) 675-5297
Hernando County SHIP Down Payment Assistance Program (DPAP)
$12,500 (352) 754-4160
Hillsborough County Heritage Housing Inc First Time Homebuyer Program (FTHP)
$5,000 (813) 961-5990
Hillsborough County Housing & Education Alliance First Time Homebuyers Program
$5,000 (813) 744-5557
Hillsborough County Housing & Education Alliance First Time Homebuyers Program
$15,000 (813) 744-5557
Hillsborough County Tampa Bay CDC Assistance Program (AP)
Also See:
Hillsborough CountyHillsborough County
$5,000 (813) 744-5557
Lakeland Keystone Challenge Fund Inc State Housing Initiatives Partnership Program (SHIP)
$30,791 (863) 682-1025
Lee County SHIP Down Payment/Closing Cost Assistance
$15,000 (239) 652-7938
Levy County SHIP Purchase Assistance (SHIP)
$20,000 (352) 486-5268
Manatee County Infill Assistance Program
30000 (941) 749-3030
Manatee County SHIP Down Payment & Closing Cost Assistance Program (DAP)
$15,000 (941) 749-3030
Melbourne Purchase Assistance Program (PAP)
$12,670 (321) 253-0053
Monroe County First Time Homebuyer Program (SHIP)
$36,000 (305) 292-1221
Multi County Autographed Book Give-Away for Inner City Youth Inc Affordable Housing Program
$25,000 (407) 426-8597
Multi County Clearwater Neighborhood Housing Services, Inc. Down Payment Assistance Program (DPAP)
$8,000 (727) 442-4155
Okaloosa County Okaloosa Community Development Corporation Down Payment/Closing Cost Assistance Program
$10,000 (850) 651-7376
Okeechobee County State Housing Initiatives Partnership Program (SHIP)
$25,000 (863) 763-6731
Orange County Down Payment Assistance Program (DPAP)
$10,000 (407) 836-4240
Orlando Downpayment Assistance Program (DAP)
$10,000 (407) 246-2708
Osceola County State Housing Initiatives Partnership Housing Assistance Program (SHIP)
$10,000 (407) 343-3105
Palm Bay Down Payment Assistance Program (DPAP)
$7,853 (321) 409-8181
Palm Beach County Hardship "B" Second Mortgage Subsidy Program (SMS)
$17,500 (561) 233-3650
Pasco County Homebuyer Assistance Program (HAP)
$9,250 (813) 847-8970
Pinellas CountyTampa Bay Community Development Corporation Homeownership Assistance Program (HAP)
$7,000.00 (727) 442-7075
Polk County Keystone Challenge Fund Inc State Housing Initiatives Partnership Program (SHIP)
$29,291 (863) 682-1025
Santa Rosa County SHIP Deferred Program Loan
$5,000 (850) 595-8910
Sarasota CountyDown Payment Assistance Program (DPAP)
$6,000 (941) 951-3640
St. Cloud Deer Creek Subdivision Affordable Housing Program (AHP)
25000 (850) 488-4197
St. Cloud Deer Creek Subdivison HOME Ownership Program (HOME)
25000 (850) 488-4197
St. Petersburg Hope VI Program (HVI)
$25,000 (727) 893-7615
St. Petersburg W.I.N Homebuyers Downpayment & Closing Cost Assistance Program (WIN)
$14,000 (727) 893-7247
Tampa Deferred Payment Loan (DPL)
$29,900 (813) 274-7977
Union County Suwannee River Economic Council Inc SHIP Program (SHIP)
$12,000 (386) 362-4115
Volusia CountyState Housing Initiatives Partnership Down Payment Assisstance Program (SHIP)
$27,000 (386) 736-5955
Winterhaven Keystone Challenge Fund Inc State Housing Initiatives Partnership Program (SHIP)
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