Shopping in Boca Raton for a waterfront condo or a custom estate over seven figures? If so, your financing will likely be a jumbo mortgage. Luxury deals here move fast, yet they come with extra rules, insurance checks, and appraisal hurdles. This playbook shows you what counts as jumbo in 2025, what lenders expect, Boca-specific risks, closing cost math, and a step-by-step plan to close with confidence. Let’s dive in.
Jumbo basics for 2025
A jumbo mortgage is any conventional loan that exceeds your county’s conforming loan limit. For 2025, the baseline one-unit conforming limit is $806,500 and the high-cost area ceiling is $1,209,750. Loans above the applicable limit are jumbo loans and are underwritten by individual lenders with their own rules. You can confirm the 2025 limits in the FHFA’s official announcement.
Some jumbos are considered “higher-priced” under federal rules if the APR exceeds a set threshold. That status triggers extra appraisal and escrow protections. The CFPB explains these thresholds and requirements in its guide on higher-priced mortgage loans.
Boca factors that affect approval
Luxury pockets in Boca Raton often trade at prices that require jumbo financing. Coastal and Intracoastal homes also face insurance and underwriting checks you want to handle early.
- Flood zones. Boca adopted updated FEMA flood maps in late 2024. If a home sits in a Special Flood Hazard Area, your lender will require flood insurance, and coverage limits can affect large homes. Check your property on the city’s Know Your Flood Zone page and get quotes early.
- Condo warrantability. After Surfside, condo building reserves, insurance, and litigation status matter more. Some towers are now non-warrantable, which can restrict your loan choices and raise down payment needs. Learn how building rules affect financing in this overview of warrantable vs. non-warrantable condos.
What lenders expect
Credit and reserves
Strong credit is standard for jumbos. Many lenders look for a 700+ score, with best pricing often at 740+. Expect to document significant post-closing reserves, commonly 6 to 18 months of payments depending on your profile and loan size. See typical ranges in this guide to jumbo credit and reserves.
Down payment and LTV
Jumbo programs often require larger down payments than conforming loans. For well-qualified buyers, 10 to 20 percent down can be available. For higher loan amounts, second homes, or investments, 20 to 30 percent is more common. Review common differences in this comparison of jumbo versus conventional loans.
Income, DTI, and docs
Underwriters usually want lower debt-to-income ratios, often at or below the mid-40s, with full documentation of income and assets. Self-employed buyers should be ready for tax returns, business statements, or alternative documentation per program.
Appraisals on luxury homes
Unique estates can be hard to value because comparable sales are limited. Lenders may widen the search for comps or even require two appraisals on very large loans. Appraiser expertise matters, especially for custom features and waterfront adjustments. For context, see this discussion on appraising unique properties. If your loan falls into a higher-priced category, expect full interior appraisals and other protections per CFPB guidance.
Jumbo loan options
Fixed-rate jumbos
Classic 30-year or 15-year fixed loans work well if you want payment certainty. Pricing and terms vary by lender and relationship.
ARMs and interest-only
Adjustable-rate mortgages and limited interest-only periods can lower initial payments. These are popular if you plan to refinance or sell within a few years. They carry rate risk once the fixed period ends.
Portfolio and private bank
Some banks hold jumbo loans on their own balance sheets. That can mean flexible documentation, relationship pricing, and custom structures for complex income or very large loans.
Piggyback combinations
To avoid a single jumbo, some buyers pair a conforming first mortgage with a second loan or HELOC. This can improve pricing but adds moving parts at closing. Learn the tradeoffs in this primer on jumbo alternatives and piggybacks.
Florida closing cost math
Closing costs scale with price in Florida, especially taxes on the deed and mortgage.
Here is a simple example for a $2,000,000 Boca purchase with a $1,600,000 mortgage:
- Documentary stamp tax on deed. 0.70 per $100 of the purchase price equals about $14,000. In practice, sellers commonly pay this in Palm Beach County.
- Documentary stamp tax on the note. 0.35 per $100 of the mortgage amount equals about $5,600, typically paid by the buyer.
- Nonrecurring intangible tax on the mortgage. 2 mills, which is $0.002 per $1, equals about $3,200, typically paid by the buyer.
- Plus title insurance, endorsements, recording, survey, inspections, and association estoppel fees if applicable.
You can confirm state tax formulas on the Florida Department of Revenue’s page on documentary stamp and related taxes.
Step-by-step playbook
- Get a full preapproval. Ask at least one jumbo specialist and one portfolio or private bank to review your file. A true preapproval with documents carries more weight than a quick prequalification.
- Price insurance early. Pull a flood zone check and order wind and hazard quotes before you sign. Build premiums and deductibles into your total monthly cost.
- Vet the condo or HOA. Request master insurance declarations, reserve studies, audited financials, meeting minutes, and any litigation disclosures. Weak reserves or insurance can limit financing.
- Prepare appraisal support. Create a concise comp packet and a list of custom features, upgrades, and permits. Be available for access and appraiser questions.
- Protect liquidity. Keep enough post-closing reserves in eligible accounts. Clarify which funds will be used for cash to close versus reserves.
- Coordinate your timeline. Appraisals, condo reviews, and insurance binders can add days. Set realistic financing and closing dates and respond quickly to underwriter requests.
Luxury condo checklist
- Building insurance: Master policy limits, wind coverage, and deductibles.
- Financial health: Latest audited statements, reserve studies, and delinquency rates.
- Occupancy and rentals: Owner-occupancy percentage and rental rules.
- Litigation: Any open claims or structural remediation plans.
- Special assessments: Known or proposed assessments and funding plans.
A project that fails key tests can be labeled non-warrantable, which may require more money down or cash.
Appraisal strategy tips
- Share your comp story. Provide the most relevant sales, even if they are slightly older or nearby rather than next door.
- Document improvements. Organize invoices, permits, and specs for high-value upgrades, docks, and specialty systems.
- Clarify unique value. Line-item the premium for view, water frontage, lot size, and architectural features.
- Consider timing. If the home is uncommon, allow extra time for scheduling and review.
Timeline and next steps
Most jumbo purchases close in roughly 30 to 60 days, depending on your documentation, appraisal timing, condo review, and insurance. Start early, keep your documents updated, and build a small buffer into your contract dates to reduce stress.
Ready to run numbers, compare options, and move forward with confidence in Boca Raton? Connect with the concierge team at OneAgent Realty for a clear plan from offer to closing.
FAQs
What is a jumbo loan in 2025?
- A jumbo is any conventional mortgage above your county’s conforming loan limit; the 2025 baseline for a one-unit home is $806,500 and the high-cost ceiling is $1,209,750.
How do Boca flood maps affect my loan?
- If your home is in a Special Flood Hazard Area, your lender will require flood insurance, which can change monthly costs and coverage needs for large homes.
What down payment do jumbo lenders usually want?
- Many strong borrowers see 10 to 20 percent down, while 20 to 30 percent is common for higher loan amounts, second homes, or investments.
How are Florida doc stamps calculated on a $2M purchase?
- At $2,000,000 with a $1,600,000 loan, deed stamps are about $14,000, mortgage stamps about $5,600, and intangible tax about $3,200, plus title and other closing fees.
What is condo warrantability and why does it matter?
- Warrantability means a condo project meets key standards for insurance, reserves, delinquencies, and litigation; if it does not, your loan choices can narrow and costs can rise.
