Florida Mortgage Purchase
The Federal Reserve unveiled the third round of stimulus in September 2012. The massive bond-buying initiative, Quantitative Easing III was aimed at proping up the US economy through a few key channels including the stock market and mortgage market.
As a result, Florida Mortgage rates hit record lows. Today’s first time Florida homebuyers are getting 30 year fixed interest rates ranging from 3% range. According to Freddie Mac Florida mortgage rates are the lowest in over 50 years.
Each Florida mortgage programs has different requirements for down payment, credit score, Florida property type and loan-to-value.
FANNIE MAE– requires a minimum credit score of 620 to buy a Florida home or mortgage refinance. Their mission is to help ensure that Florida home buyers and home owners have access to Florida mortgage loans. Fannie Mae offers Florida loan programs such as HARP, HomePath, Conforming and Conforming High Balance.
FREDDIE MAC- requires a minimum credit score of 620 to buy a Florida home or refinance. Their mission is to help ensure that home buyers and home owners have access to mortgages. Much like Fannie mae, Freddie Mac offers Florida mortgage programs such as HARP, HomeSteps, Conforming and Conforming High Balance.
FHA– requires a minimum credit score of 530 with 10% down payment. Above 580 requires only a 3.5% down payment. There are no income limits like you may find with Florida first time home buyer programs. However, there are Florida FHA loan limits on how much you can borrow. FHA requires a minimum down payment of 3.5% of the purchase price and the seller can credit the buyer up to 6% to cover closing cost.. FHA offers various Florida mortgage programs to buy a home or FHA refinance programs such as rate & term, cash-out and streamline refinance.
VA– requires a minimum credit score 530. The basic intention of the VA direct home loan program is to supply home financing to eligible veterans in areas where private financing is not generally available and to help veterans purchase properties with no down payment.
USDA– requires a minimum credit score 620. The Office of Rural Development (RD) is an agency with the United States Department of Agriculture which runs programs intended to improve the economy and quality of life in rural America by offering 100% financing.
PORTFOLIO- A portfolio loan is a loan that is made by a Florida mortgage lender that does NOT sell the loan to the Fannie Mae and Freddie Mac. Because they don’t sell the loan off to Freddie or Fannie, they don’t have to follow any of the requirements that Fannie and Freddie have. Examples of portfolio loans include jumbo loans, stated income loans, loans for foreign nationals and loans for investment properties.
The most popular Florida mortgage loan is the 30-year fixed-rate Florida FHA mortgage. This loan is usually the easiest to qualify for and provides the maximum interest deduction at tax time. The interest rate stays the same over the life of the loan which provides unchanging low monthly payments.