Cross-Collateralization

Jumbo-Super Jumbo Florida Cross-Collateralization Mortgage Lenders 

• Customizable loans from $150,000 to $30 million
• Buy-before-you-sell options so you can use your existing real estate to help buy new property
• Mix-and-match income sources including pledged assets and statements
• Interest-only options to maximize cash flow
• DSCR option for streamlined real estate investment loans
• Self-employed Florida Jumbo borrower and foreign national financing

The cross-collateral program allows for 90% financing of the eligible property value when ELTV is 5% below published LTV with a maximum of 65% LTV, and, in
certain cases (see below), an allowance for the borrower to elect not to make a down payment.

Down Payment Jumbo Florida cross collateral mortgage 

• 10% cash down required for owner-occupied properties
• 20% cash down required for second home or investment properties 100% financing may be available if the following three conditions are met:
• Purchase transactions ONLY
• Effective LTV that is AT LEAST 15% below the published threshold for the transaction
• 12 months’ all mortgage payments held in liquid reserves
• No gift funds are part of the transaction
Effective LTV is calculated by dividing the loan amount by the total, summed value of both properties.

Cross Colleralize Morgage Example: Owner Occupied Property
Property A Lesser of Purchase Price or Appraised Value $2,000,000
Property B Appraised Value $ 770,000
TOTAL VALUE $2,770,000

90% of Purchase Price Property A $1,800,000
Loan Amount Requested $1,800,000
Cash Required $ 200,000
Effective LTV 64.98%

Florida Jumbo  Cross Collateral Requirements:

• Primary residences, second homes, and investment properties may be crossed with the subject;
o NOTE: properties located in Washington DC, West Virginia, and Virginia and Texas Homestead/Texas Home Equity may not be used for a cross.
• The second piece of real estate must be owned by the borrower;
• Florida Mortgage Lenders should be in first lien position on both properties (deviations from the guideline are allowed if there is an abundance of equity). These deviations must be reasonable and well-documented;
• An appraisal report will be required for both properties as follows:
o Loan amount $1,000,000 or less – one appraisal is required for the subject property and one for the Florida cross-property
o Loan amounts between $1,000,000 and $1,500,000 – If the subject property appraisal is ordered through a Florida Mortgage Lenders -approved AMC, then only one full appraisal is required. Otherwise, two full appraisal Reports are required. One for the jumbo cross-collateral property
o For loan amounts over $1.5 million: two reports for the subject property and one for the jumbo cross collateral property
• A preliminary title report is required with lender’s coverage on both properties;
• Proof of hazard insurance for both properties
• Proof of flood insurance for both properties (if applicable)
• Property taxes due within 60 days must be paid current on both properties
• 2 recording fees if properties are located in different counties
• One note and one mortgage will be executed and will be recorded against both properties for the total loan amount (unless the properties are in different counties in which case 2 mortgages will be recorded – 2 recording fees)