Florida Mortgage Loans
15 – 30-Year Fixed Loan fixed rate
A 30-year fixed "conventional" loan has the same mortgage payment for 360 months.
Conventional loans typically are harder to qualify for than FHA loans and require a slightly higher down payment. However, in some cases, rates can be lower and have lower closing costs. Also, monthly mortgage insurance is usually less and not required with at least a 20% down payment.
15- and 20-Year Fixed
This type of loan is the same as the 30-year fixed rate loan except for the life of the loan is 180 months or 240 months rather than 360 months. Monthly payments for this type of loan are higher since the loan is being paid faster than the 30-year fixed-rate loan. Generally, interest rates on 15 and 20-year fixed rate loans are slightly lower than on 30-year fixed-rate loans.
- 5% minimum down payment required on purchase
- Minimum credit score - usually 620
- Post-bankruptcy: can qualify after 4 years
- Post-foreclosure: can qualify after 7 years
- Post-short-sale: Can qualify after 2 years (LTV restrictions may apply)
This type of loan has a fixed interest rate for an initial period of time, and monthly payments based on a 30-year repayment schedule. At the end of the initial period (typically five, seven or 10 years), the interest rate and monthly payment may change each year thereafter. This is called the "adjustment period."
Following each adjustment period, the new rate is based upon changes in a financial index and is calculated by adding a predetermined amount to that index. The amount that is added to the index is called the margin.
Many adjustable-rate mortgage loans have adjustment caps. Those caps limit the amount an interest rate can increase during each adjustment period and the life of the loan.
For example, let’s say the index equals 4.5% at the time of adjustment and the margin equals 2.5%. The new interest rate would be 7%. The new monthly payment would be calculated at the new monthly interest rate, based upon the number of years remaining for the loan term. If your current interest rate is 4% and your annual cap is 2%, then your interest rate can only go up to 6% during that adjustment period. However, the interest rate is likely to go up again during the subsequent adjustment period.
Due to the added risk associated with changing interest rates, Adjustable Rate Mortgage Loans are not appropriate for all borrowers. For that reason, we are not able to offer Adjustable Rate Mortgage Loans through our website. Contact us directly to speak with one of our experienced loan officers and discuss your unique financial goals and situation.
An FHA (Federal Housing Administration) loan is a loan insured against default by the FHA. In other words, the FHA guarantees that a lender won’t have to write off a loan if the borrower defaults – the FHA will pay.
FHA loans are not for everybody. Nevertheless, they are a great help to some borrowers. FHA loans allow people to buy a home with a down payment as small as 3.5%. Other loans might not allow such a low down payment.
Who can get an FHA Loan?
Almost anybody can get an FHA loan. There are no income limits. However, there are limits on how much you can borrow. In general, you're limited to median home prices in your area. To find the limits in your region, visit HUD's website. To qualify for an FHA loan, you'll need to have reasonable debt to income ratios. You don't need perfect credit, but you will need to have a credit score of at least 580.
FHA loans offer a few other benefits:
- 3.5% down payment required on purchase
- Easier to use gifts for a down payment and closing costs
- No prepayment penalty
- Financing for home improvement using FHA 203k programs
- Post-bankruptcy qualifying – 2 years after
- Post-foreclosure qualifying – 3 years after
Due to the added complexity of this program, we are not able to offer FHA loans through our website.
Contact us directly to discuss your loan options.
A Veterans Affairs (VA) loan is perhaps the most powerful and flexible lending option on the market today. Rather than issue loans, the VA instead pledges to repay about a quarter of every loan it guarantees in the unlikely event the borrower defaults. That guarantee gives VA-approved lenders greater protection when lending to military borrowers and often leads to highly competitive rates and terms for qualified veterans.
The most significant benefit of a VA loan is the borrower's ability to purchase with no money down. VA loans also come with less stringent underwriting standards and requirements than conventional loans. In fact, about 80% of VA borrowers could not have qualified for a conventional loan. These loans also come with no private mortgage insurance (PMI), a monthly expense that conventional borrowers are required to pay unless they put down at least 20 percent of the loan amount.
VA loans offer a few other benefits:
- Down payment as low as 0%
- Competitive interest rates that are routinely lower than conventional rates
- No prepayment penalties
- Higher allowable debt-to-income ratios than for many other loans
- Streamlined refinancing loans that require no additional underwriting