We obtained a 30-year fixed-rate, conventional, high-balance loan for our client to purchase a second home in Key Largo, Florida.
Our client was previously turned down by a national online mortgage lender due to his credit history.
On a case-by-case basis, we help our clients with their credit. In this case, we helped our client increase his credit score from 644 to 681. This allowed us to get him approved by a different lender. He was also able to qualify for more favorable terms, including a loan-to-value (LTV) of 85% and a 30-year fixed interest rate in the 3’s.
The loan amount was $539,750, but was not considered jumbo. Unlike every other county in Florida, Monroe County’s maximum loan limit under Fannie Mae and Freddie Mac guidelines is $552,000 for single-family residences, instead of $510,400.
(Please note that the limits may vary from year to year. For example, in 2021, the limit for Monroe County increased from $552,000 to $608,350 for single-family residences. For the most recent conforming loan limits, visit the Federal Housing Finance Agency’s website here.)
Therefore, this loan was classified as a conforming loan under Fannie Mae and Freddie Mac.
Our client is now the proud owner of real estate in the Keys, currently a hot market. He and his family will be able to enjoy the property themselves, as well as use the property as a source of seasonal, short-term rental income.