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There are plenty of ways to finance your luxury home in Sarasota, Florida. However, you want to ensure you select the right financing option for your situation.
Which financing option is right for your luxury home purchase? This post will cover a few options to help you make an informed decision.
Sarasota Real Estate Market Watch
The average price of luxury homes for sale in Sarasota, FL, ranges from $1,025,000 to $1,876,470, depending on the source. Real estate data changes daily. If you need to buy or sell a home in Sarasota, FL, and its neighboring areas, please click here to contact us.
Learn about different ways to finance your luxury home in Sarasota below.
Ways to Finance Your Luxury Home in Sarasota
This type of loan is higher than the conforming loan set by the Federal Housing Finance Agency. Having a large sum for your down payment can help you qualify for a jumbo loan. Higher credit scores and larger cash reserves are also requirements. Some jumbo loan lenders also require you to pay private mortgage insurance.
Super Jumbo Loans
Jumbo loans are for homes that exceed the price of a conventional mortgage. However, some homes exceed the limits of standard jumbo loans. In these cases, lenders grant a super jumbo loan with limits exceeding a jumbo loan. The eligibility is stricter than jumbo loans because of greater risk.
Bank Statement Loan
Self-employed individuals can benefit from a bank statement loan. Lenders require 12 months of bank statements for this type of loan. The lenders will check your average deposits per month to assess your monthly income. Not all financial institutions offer this type of loan.
Lenders permit borrowers with low credit scores, foreclosures, or bankruptcy to apply for these loans. However, bank statement loans are slightly more expensive than conventional loans. The government also does not back this type of loan.
A non-qualified mortgage offers loan programs for self-employed individuals and borrowers with bad credit, bankruptcy, and foreclosures. Subprime lenders usually take on this type of loan. Examples of subprime lenders are Carrington Mortgage Services, Angel Oak Mortgage Solutions, and North Star Funding.
The lenders ask for asset collateral and bank statements for loan applications. There is no limit and private mortgage insurance for a non-qualified mortgage which is why it’s popular among borrowers.
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