Jumbo Condo Financing At Royal Palm Residences

Are you eyeing a residence at Royal Palm Residences and weighing your financing options? If you want leverage without disrupting your portfolio, the right jumbo condo strategy can make your closing smoother and faster. Jumbo loans add building-level review on top of your personal underwriting, which is why even strong buyers sometimes face surprises. In this guide, you’ll learn how jumbo condo loans work in Boca Raton, what lenders evaluate in the building, and how to set a timeline that protects your deposit and closing date. Let’s dive in.

What counts as jumbo in Boca Raton

Conforming loans sit at or below limits set annually by the Federal Housing Finance Agency. Anything above the limit is considered a jumbo loan. Some banks use the term super‑jumbo for very large balances, often above the $2 million to $3 million range. Exact thresholds and pricing vary by lender and market conditions.

The key takeaway: your loan size and the condo’s eligibility both influence the structure, rate, and timeline.

Why condos change jumbo underwriting

With a condominium, the lender underwrites you and the building. The project review looks at the association’s finances, insurance coverage, ownership mix, litigation status, and marketability. In coastal Florida, lenders often add extra scrutiny due to wind and flood risk and the value of units. A building that is considered non‑warrantable can limit loan options or reduce maximum loan‑to‑value.

Typical LTV and credit expectations

For a warrantable luxury condo purchase, many jumbo lenders target 70% to 80% LTV. Some will go higher for exceptional profiles and smaller jumbo balances. For super‑jumbos, expect lower maximums, often 60% to 70%. If a building is non‑warrantable, many lenders cap LTV between 50% and 70% or will decline.

Jumbo pricing rewards top credit. Strong credit scores, low recent credit events, and significant post‑closing reserves are common expectations. Lenders may want several months of mortgage payments in liquid reserves. They also look at the HOA’s reserve funding and delinquency trends.

Refinances are tighter. Rate‑and‑term refis often see max LTVs reduced by 5% to 10% versus purchase. Cash‑out refis may be lower still.

Condo project eligibility basics

Lenders complete a project review to determine if the building qualifies for their programs. They usually assess the following.

Ownership and concentrations

• Owner‑occupancy levels and investor mix.
• Single‑entity ownership limits. Many lenders scrutinize any owner with a large share of units.

Association financial health

• Budget adequacy and the presence of a reserve study.
• Reserve funding and any recent or pending special assessments.
• HOA delinquency rates and trends in monthly dues.

Insurance and catastrophic risk

• Master policy limits, named insured, and deductibles.
• Wind and flood coverage, especially critical in Palm Beach County.
• Adequacy of coverage to rebuild common elements.

Litigation and legal matters

• Active or pending litigation that could affect finances or marketability.
• Any special assessments tied to repairs or legal exposure.

Commercial and mixed‑use exposure

• The share of commercial space and how it affects eligibility.

Project status and warrantability

• Completion status, developer control, and unsold inventory.
• Whether the project meets conventional standards for warrantability.

Loan structures that fit HNW buyers

Different products fit different profiles and building situations. Your goal is to match structure to closing certainty.

Bank portfolio jumbo

• Pros: flexible underwriting, tailored to complex assets and condos.
• Cons: terms vary; pricing can be higher than vanilla jumbo.

Private‑bank mortgages

• Pros: bespoke solutions for asset‑rich clients, including collateralized or relationship‑based terms.
• Cons: relationship minimums and individualized pricing.

Non‑QM alternatives

• Pros: options like asset‑depletion, bank‑statement qualifying, interest‑only, or DSCR.
• Cons: higher rates and fees; more complex underwriting.

Bridge or short‑term solutions

• Pros: helps you close if project approval or documentation is delayed.
• Cons: added cost and a required exit plan to permanent financing.

Asset‑depletion, in plain English

Asset‑depletion lets you qualify using liquid assets instead of traditional income. Lenders convert assets into an imputed income stream using either a divisor over a period or an assumed rate of return. Rules vary on which accounts count and how retirement assets are treated. This method can unlock higher LTVs for buyers with strong balance sheets and limited W‑2 income.

Process and timeline for Royal Palm Residences buyers

The best results come from starting early, picking the right lender, and securing the condo documents fast.

Before you write an offer

• Choose your lender early and confirm their condo‑review policy and timeline for Royal Palm Residences.
• Obtain a full pre‑approval from a lender comfortable with jumbo condos, not just a soft prequalification.
• Gather documents: bank and brokerage statements, trust or entity papers, tax returns if applicable, and liquidity statements.

As soon as you go under contract

• Request the association’s budget, recent financials, reserve study, master insurance declarations with wind and flood deductibles, recent meeting minutes, bylaws and declaration, owner‑occupancy and tenant counts, any litigation disclosures, and details on special assessments.
• If the project has recent development activity or unsold inventory, ask for status of sales and warranty coverage.

What to expect on timing

• Lender selection and pre‑approval: about 1 to 2 weeks.
• Condo project review: plan for 2 to 6 weeks, longer if documents are incomplete or litigation needs analysis.
• Underwriting to clear conditions and issue a commitment: often 2 to 4 weeks after the project is approved.
• Budget 45 to 60 days from application to close for jumbo condo loans, with contingency for longer reviews.

Build smart contingencies

• Align your financing contingency with realistic review timelines.
• Consider longer inspection or financing periods or an escrow structure that allows extensions if the condo review is pending.
• Keep a backup: a portfolio or private‑bank option, or a bridge solution if your primary lender cannot approve the project.

Pricing versus certainty

• The most certain paths are portfolio or private‑bank loans, or paying cash. These can cost more in rate or fees but reduce the risk of a last‑minute denial.
• If you prioritize the absolute lowest rate, confirm both borrower and project eligibility early, and accept that project issues could force a pivot.

Building checklist to start early

Use this as your early‑stage checklist for Royal Palm Residences.

• Verify project status: completion, occupancy, and percentage sold.
• Review association financials: current budget, recent audited or reviewed statements, reserve study, and a five‑year history of special assessments.
• Confirm insurance: master policy limits, wind and flood coverage, insurers, and deductible levels.
• Check ownership mix: owner‑occupied counts, investor ratios, single‑owner concentrations, and rental policies.
• Identify legal items: any current or threatened litigation and compliance with Florida condominium statutes.
• Coordinate lender paperwork: get the lender’s condo questionnaire and document list as early as possible.

Sample strategies that work

• If the building is warrantable and your loan size is near the conforming threshold: a conventional jumbo can be efficient, often at 70% to 80% LTV.
• For super‑jumbos above $2 million or when project nuances exist: a private‑bank or portfolio jumbo can increase closing certainty, with typical LTVs closer to 60% to 70%.
• If the building appears non‑warrantable or insurance terms are complex: consider a portfolio lender with condo flexibility, plan for a larger down payment, or use short‑term financing and refinance later.
• If your income is nontraditional: use asset‑depletion or bank‑statement qualifiers to align with your balance sheet.

Avoid these common pitfalls

• Waiting to choose a lender until after the contract is signed.
• Assuming any bank will approve the building without reviewing association documents.
• Overlooking wind or flood deductible levels on the master policy.
• Using a short closing timeline that leaves no room for condo review.
• Tying up too much liquidity and falling short on required reserves.

Ready to move forward?

If Royal Palm Residences is right for you, align your loan structure with the building’s profile and your liquidity goals. Start the condo review early, secure a lender comfortable with jumbo condos, and build time into your contract to protect your deposit. If you want a seasoned, private client approach to both the residence and the financing path, connect with our team. Schedule a conversation with Rochelle LeCavalier at Douglas Elliman Real Estate.

FAQs

What LTV is common for Boca luxury condos?

• For warrantable condos, many lenders allow 70% to 80% LTV; super‑jumbos often land near 60% to 70%, and non‑warrantable buildings may require even lower LTVs.

How long does a condo project review take in Palm Beach County?

• Plan for 2 to 6 weeks depending on document completeness, association responsiveness, insurance details, and any litigation.

What if a lender views Royal Palm Residences as non‑warrantable?

• You can pursue a portfolio or private‑bank loan, consider non‑QM options, increase your down payment, or close with short‑term financing and refinance later.

How does asset‑depletion help jumbo condo buyers?

• Lenders convert liquid assets into an imputed income stream using a divisor or assumed return, which can help you qualify if traditional W‑2 income is limited.

Which documents should I gather first for a jumbo condo loan?

• Bank and brokerage statements, trust or entity documents, tax returns if needed, plus the HOA budget, financials, reserve study, insurance declarations, meeting minutes, and any litigation disclosures.

Should I prioritize lowest rate or closing certainty for a jumbo condo?

• If closing certainty is the priority, consider portfolio or private‑bank lending or cash; if you target the lowest rate, verify both borrower and project eligibility early and allow time for review.