Financing
Mortgages, jumbo loans, and proof of funds.
Get pre-approved early
Luxury sellers expect proof of funds or a strong pre-approval letter before accepting showings. Jumbo lenders may require additional reserves, two appraisals on unique properties, and manual underwriting. Starting early surfaces issues — complex income, entity ownership, or recent liquidity events — before you are under contract.
Cash vs financed
Cash offers can close faster and win competitive situations, but they tie up capital that might earn elsewhere. Financed purchases benefit from rate shopping and understanding total monthly cost — principal, interest, taxes, insurance, HOA, and club dues. Some buyers finance even when they could pay cash to preserve liquidity.
Loan types common in South Florida
Conventional conforming loans work below the local limit; jumbo and portfolio products cover higher price points. Adjustable-rate products appear in luxury markets but require careful modeling. Asset-based lending uses pledged securities instead of traditional income documentation. Foreign nationals may need non-QM or international bank programs.
Down payment and reserves
Twenty percent down is common on jumbo loans; some programs allow less with mortgage insurance or higher rates. Lenders often require six to twenty-four months of PITI plus HOA in liquid reserves after closing. Gift funds are allowed with proper documentation and donor letters.
Financing readiness checklist
- Credit score optimized and reports reviewed
- Down payment and reserve sources documented
- Two lender quotes compared on rate and fees
- Pre-approval or proof-of-funds letter in hand
- Monthly budget includes insurance and HOA — not just P&I