Now is the Time to Buy Luxury Real Estate in Jacksonville

By October 7, 2011Traditions Property Blog

Buyers seeking luxury apartments, luxury single family homes, or luxury townhomes for sale as well as higher-end Jacksonville real estate will soon have a distinct advantage in the market. On October 1st, mortgage loan sizes are set to be cut. Fannie Mae and Freddie Mac will lower limits on mortgage loans they will buy from lenders. Some buyers who may have qualified for mortgage loans would now be forced into jumbo loans, which would be more difficult for them to get. Thus, many buyers will be forced out of the market. Buyers who remain in the market looking for high-end Jacksonville real estate or luxury apartments for rent will have less competition and be able to make the most of their purchases in the luxury homes market.

While it will be a great time to buy Luxury residential homes in Jacksonville or maybe even luxury apartments, home owners may want to hold off on selling homes – especially more expensive ones. Whether you are looking to buy Jacksonville real estate or to rent out your old home, let Traditions Realty handle all your needs. Traditions is experienced and knowledgeable about Jacksonville real estate so you won’t have trouble finding luxury homes for sale. We understand that available luxury homes require a highly selective tenant-screening and placement process, and we can handle all aspects of property management. Let us help you navigate the current market and make the most of Jacksonville real estate.  Read more below.

Mortgage loan limits decline Oct. 1

NAR Call for Action

FHA plans to lower maximum loan limits on Oct. 1, but lawmakers could still change that. NAR’s Call for Action asks all Realtors to write to their personal representatives to explain what this change would mean in their housing market. For more information, visit NAR’s Call for Action website.

WASHINGTON – Sept. 14, 2011 – Fannie Mae, Freddie Mac and Federal Housing Administration (FHA) loan limits shrink a bit starting on Oct. 1, though the Florida impact will be felt mainly in high-cost home areas.

The National Association of Realtors® has protested the increase, saying it will further limit the ability of Americans to purchase a home.

The U.S. Department of Housing and Urban Development has a searchable database for loan limits, both FHA and Fannie Mae/Freddie Mac, on its website.  To see statewide numbers, select only “Florida” and “county” for a search. Change the dates under “Limit Year” to see either the current rates or the rates effective after Oct. 1.

Fannie Mae and Freddie Mac

The two government-sponsored enterprises run by the federal government drop the maximum home mortgage they’re willing to purchase – to $417,000 – effective Oct. 1.

However, the current higher rates never applied nationwide and only worked in select higher-home-price areas. According to HUD’s website, Florida currently has six city areas with a maximum loan limit higher than $417,000 for a one-family home: Fort Lauderdale-Pompano Beach-Deerfield Beach (current maximum loan is $423,750), Naples-Marco Island ($531,250), Bradenton-Sarasota-Venice ($442,500), Miami-Miami Beach ($423,750), Key West ($729,750) and West Palm Beach-Boca Raton-Boynton Beach ($423,750).

Of the six, four will drop to the new maximum of $417,000; however, two will not. Effective Oct. 1, the Fannie Mae and Freddie Mac loan maximum for Naples-Marco Island will be $448,500, while Key West-Marathon will be $529,000.

Loan maximums are higher for two-, three- and four-family homes.

Since Fannie and Freddie do not buy loans until the sale has closed, many lenders have already started enforcing the new limits.


FHA limits vary by city in Florida. In no area does it go lower than $271,050, however, which is 65 percent of the Fannie Mae/Freddie Mac loan limit. Since many areas already have a $271,050 FHA loan limit – mainly smaller urban areas – a lot of buyers won’t notice a difference.

The FHA national loan limit “ceiling” is 150 percent of the national conforming loan limit. In higher-cost areas, the FHA loan limit lowers after Oct. 1, though not necessarily to the floor amount. In Jacksonville, for example, the current FHA maximum one-family loan limit of $387,500 drops to $304,750; in Miami-Miami Beach-Kendall it drops from the current $423,750 to $345,000; in Key West it goes from today’s $729,750 to $529,000.

For information on other FHA loan limits, check HUD’s website calculation.