Fort Lauderdale Mortgage Landscape

What to Expect When Looking For a Fort Lauderdale Mortgage

FHA and Conventional financing are available in Florida up to loan amounts of $417,000. Conventional loans include a full menu of Fixed Rate Loans offered on terms of 10, 15, 20, 25 and 30 years. They also include a full array of Adjustable Rate Loans with fixed rate terms of 1, 3, 5, 7 and 10 years. Adjustable Rate payments are usually amortized over 30 years. FHA Fixed Rate loans are offered on terms of 15 or 30 years along with Adjustable Rate loans with fixed rate terms of 3 or 5 years.

What you need to know …

• All Conventional & FHA loans are only available on a full income documentation basis.  Gone are the stated income loans, no or low documentation loans and any type of “Easy Qualifying Loans”.
• All Conventional & FHA loans require a minimum credit score of 620.
• All Conventional & FHA loan down payments must be sourced with a minimum 2 month look back. Any and all large deposits must be documented and explained.
• Although Conventional Loans are available up to 90% loan-to-value, the norm in Florida is 80% loan-to-value.  All Conventional Loans over 80% require Private Mortgage Insurance (PMI).  There is only one mortgage insurance company writing PMI in Florida. Essentially, few Conventional loans are being approved above 80% because the requirements for PMI are too difficult for most borrowers. FHA loans are available with as little as a 3.5% down payment and the money may come from gift funds.
• Appraisal requirements for Conventional & FHA financing have become much more stringent.
• Gift funds are still allowed at loan-to-values of 80% or below for Conventional loans.
• Conventional Loans allow up to 6% seller contributions at 80% loan-to-value or below. FHA currently allows up to 6% seller contributions at this time, but is scheduled to be reduced to 3% in summer of 2010 (date not yet announced).
• Self-Employed borrowers face many challenges when declining income is reflected on most recent tax return.
• Most lenders have imposed overlays to Conventional & FHA loan underwriting requirements.  This means they’ve added even more stringent guidelines than Fannie Mae, Freddie Mac, or FHA require. (This could mean higher credit score requirements than 620, larger down payments, or reduced debt-to-income ratios).
• Many lenders charge premiums to interest rates for lower credit scores, higher loan-to-value, property type, occupancy, etc.
  

These challenges have made it more difficult to qualify and obtain a Conventional or FHA loan, when looking for a Florida or Fort Lauderdale mortgage.  Most lenders have their own underwriting overlays that are different from bank to bank.

Conventional & FHA mortgage money is readily available for well qualified borrowers.  The Fort Lauderdale mortgage landscape can be a minefield without an experienced Florida Mortgage Broker to guide you. When looking for a Fort Lauderdale mortgage broker, be sure to select a CMPS Professional (Certified Mortgage Planning Specialist) to help you analyze your personal financial profile and match you to a lender for your best Fort Lauderdale mortgage options.

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Call  954-629-6151

Email  HarveyCollier@MortgagePro-Florida.com