The nation’s housing slow down will be a long haul and a full recovery won’t occur until some time in 2009, according to a new report by Housing Predictor, which forecasts more than 250 local housing market futures in all 50 U.S. states.

The report comes on the heals of a Yale University economist warning to Congress that there may be future shocks to the nation’s housing markets.

Economist Robert Shiller, who authored a book warning of the real estate market collapse four years ago told Congress he feared that “the collapse of home prices might turn out to be the most severe since the Great Depression.”

“The decline in house prices stands to create future dislocations, like the credit crisis we have just seen,” he told the Senate’s joint economic committee.

The present real estate slow down has evolved into a crisis with tightening credit standards for home buyers seeking mortgages. The slow down in the housing market is gaining momentum with slower sales in the majority of markets tracked by Housing Predictor, while foreclosures are at a record high.

Former Federal Reserve Chairman Alan Greenspan said he would not be surprised if home prices fall in double-digit decreases over the next year. Deflation in U.S. home prices of that scale nationally would be unprecedented in U.S. history, and would have severe economic repercussions, costing many times the economic damage of the subprime mortgage melt down that started the present financial crisis.

Investment bankers estimate the financial damage could be more than $300-billion. The damage to the entire U.S. economy would be the worst since the Great Depression.

The Housing Predictor analysis indicates inventory levels of homes, condos and land for sale in the majority of states markets are increasing with more foreclosures hitting the market.

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For those of us in the real estate and mortgage industry, much of the recent news is causing us to wonder if many of us will still be here this time next year. The real estate industry is changing and any successful agent or mortgage broker must adapt to stay in business. Individual demise will not, however, be the result of lack of volume.

Consider these numbers: In 2003, as a real estate agent making 3% of the $170,000 median sale price and completing 25 transactions, the gross income would have been $127,500. In 2006, that same agent would have only had to complete 20 deals and the gross income would have been $133,200. The total number of sales in 2006 was not 20% less than the 2003 number, yet one could still make more money and work less. What a bummer!

Mortgage brokers should consider these numbers as well: In 2004, with 20% down, the average loan amount would have been $147,280 based on the median sale price. Charging 1% and completing 50 transactions throughout that year, the gross income would have been $73,640. In 2006, with 20% down, the average loan amount would have been $177,600 based on the median sale price. With 15% less production, the total number of loans completed would have been 42 and the gross income would have been $74,592. Not a big increase, but loan volume was not down 15%.

As industry professionals we need to adapt with the market and know how and where to find the next deal. You could offer the best service, lowest rates or fastest whatever. The bottom line is that if people don’t know how to find you or you don’t find them, the product/service goes unused.

Let’s consider some of the NAR comments and opinions of past years to determine what to expect in 2007 and beyond. David Lereah, NAR’s chief economist, and previous NAR President Al Mansell, have had this to say:

1/2002 – David Lereah, NAR’s chief economist “Although mortgage interest rates moved around a lot during 2001, they generally stayed within a range of a half of a percentage point. In fact, last year was the second lowest year on record since Freddie Mac started tracking mortgage interest rates in 1971, and that is one of the fundamental factors in the favorable market conditions that we expect to prevail for this year as well,” Freddie Mac reported interest rates averaged 6.9%.

2/2003 – David Lereah, NAR’s chief economist “To a certain extent, it appears many of the buyers may have been in the market for a while and moved decisively as interest rates dropped to generational lows,” he said. “When you look at the corresponding rates of price increase, these are buyers who put their money on the table to get their share of the American dream.” Freddie Mac reported interest rates averaged 6.08.

1/2004 – David Lereah, NAR’s chief economist “We’ve been expecting the pace of home sales to ease, and a decline in November (2003) seemed to indicate a more sustainable pace, but the rebound in December (2003) – the second highest monthly pace on record – shows there’s still a lot of life in this market,” he said. “The biggest factor is a resumed decline in mortgage interest rates, which have been much lower than most analysts expected.” Freddie Mac reported interest rates averaged 5.88%.

1/2005 – NAR President Al Mansell, CEO of Coldwell Banker Residential Brokerage in Salt Lake City, said strong price growth is being driven by a shortage of homes available for sale. “The demand for homes remains in record territory, but the supply of homes on the market set an all-time low in January,” he said. “The growth in home equity is adding to housing wealth and helping the overall economy, yet low mortgage interest rates are keeping homes within reach of buyers in most of the country.”

1/2006 – David Lereah, NAR’s chief economist “This is part of the market adjustment we’ve been discussing, with a soft landing in sight for the housing sector,” he said. “The level of home sales activity is now at a sustainable level, and is likely to pick up a bit in the months ahead. Overall fundamentals remain solid, driven by population and employment growth as well as favorable affordability conditions in most of the country, so we expect the housing market to remain historically high but lower than last year’s record.” Freddie Mac reported interest rates averaged 6.23%.

1/2007 – David Lereah, NAR’s chief economist “Despite all of the doom-and-gloom stories and dire predictions over the last year, 2006 was the third strongest year on record for existing-home sales. It looks like we’re moving beyond the low for the housing cycle last fall, and buyers are responding to historically low interest rates and competitive pricing by home sellers. In addition, a tightening inventory of homes on the market is supporting prices.” Freddie Mac reported interest rates averaged 6.14%.

Spokane Real Estate Agent and Washington mortgage broker , Michael Sanborn, said, “While rates continue to remain at a very low point historically, inventory is much higher than average. Home prices for 2007 are expected to be maintained and even increase in certain regions. As the inventory tightens, home values may increase as long as interest rates don’t increase to a point that might offset that. Either way, people will have to buy and sell. Homes will need to be financed or refinanced. New homes are being built all of the time and the population is continually increasing. Things really do look good, but you need to make sure you’re business is doing the right things to be in front of the clients.”

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Whether you are purchasing a new Florida home, renovating a house, or simply making your current home more energy efficient, the FHA home loan can be the solution to monetary concerns or problems. Since being established in the early 1930s during the great depression, the Federal Housing Administration has aimed to assist all people to live in their dream homes, be it in Florida or any other Florida county we serve including Miami Dade, Broward and Palm Beach Florida. Time tested and government backed, there are few excuses to pass up a FHA loan.

The largest percentage of a person’s life is spent in their Florida house. An FHA loan provides comfort and makes sure that time is well spent. FHA does not lend money to Florida mortgage applicants, however serves as insurance to lenders so you can obtain a mortgage or loan to renovate or purchase a Florida house. With a down payment equipment untouchable by any other mortgage program of 3.5% of the purchase price of the home, and some programs that require no money down, the benefits of an FHA loan outweigh its costs.

Florida is a beautiful state full of beautiful homes. The dream of owning a Florida home may seem difficult at first, but with thanks to the Federal Housing Administration, that dream is not an impossible. FHA mortgage programs can help you become a homeowner with the help of an easy, hassle-free FHA mortgage loan.

Like many home buyers and homeowners looking for a Florida mortgage, 1st Continental Mortgage has weathered the storm and come out stronger and wiser. With a keen focus on core principles and products like the FHA home loan, we’re ready and able to make a broad range of real estate loans throughout Florida. Other advantages to the FHA Home loan include:

Mortgage Programs With Minimal Down payment and Closing Cost

Down payment less than 3.5% of Sales Price 100% Financing options available Seller can credit up to 6% of sales price towards buyers costs. No cash or bank reserves are required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines

No minimum Credit Score or credit score requirements. FHA will allow a home purchase 2 year after a Bankruptcy. FHA will allow a home purchase 3 year after a Foreclosure

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anufactured Home Loan

FHA mortgage loans offer Florida manufactured home seekers several options for for manufactured home loan financing for a mobile home with land. The stark reality is, with annual double digit appreciation on housing and payroll lagging behind at 3% or less, traditional stick built homes are more and more becoming far out of reach of the Florida Home Buyer. FHA home loans provide an opportunity for Florida homebuyers to get into a great manufactured home and land package with as little as 3.5% down payment. FHA Recognizing the trends and knowing that manufactured homes offer great value with terrific per square foot pricing that today’s traditional Florida homes simply can’t match. Purchasing a Florida manufactured home and land package is not as hard as you think. Because the Federal housing administration, FHA insures private Florida mortgage lenders against loss, you get a better deal.

Years ago, mobile homes were considered substandard and were not held in high regard by those who owned one. Today’s manufactured home sure has gone a long way to changing that opinion. Many offer great amenities that would cost you tens of thousands of dollars more to achieve with a traditional block home. Better still, today’s mobile homes are actually built to a higher standard than those required for traditional block homes. For instance, on the Florida coast including Key West, FL  it is not uncommon to see a 1800 square foot middle class home on the market for over $300,000.00 dollars. A savvy Florida buyer can purchase a quarter acre lot outside of Tampa, FL and put a 2000 square foot manufactured home for a package price of around $100,000.00 with typically far more featured built into their home. Now that’s buying up and a perfect option for Florida First Time Buyers!

Historically, mobile homes were considered a poor investment for the mortgage market because of home depreciation concerns. After 40 years of data, this has simply been shown to be inaccurate. The typical mobile home loan secured by a manufactured home tied to land appreciates using the same principles one applies to traditional stick built homes: Supply and demand. That’s why we believe a quality land and mobile home mortgage package is really a good investment.

 

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http://www.fhamortgagefhaloan.com/”>FHA home loans for Buying a Florida home.

Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA home loan program can simplify the purchase of buying a  Florida home, making financing easier and less expensive than an other home loan program. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, give us a call 1-800-570-0448 or use our quick application at www.FHAmortgageFHALoan.com

 

Common FHA Mortgage Questions Why should I apply for an FHA home loan?

There are lots of good reasons to choose an FHA home loan over other Florida mortgage programs, especially if one or more of the following apply to you:

You’re a Florida first-time homebuyer. You want to keep your monthly payments as low as possible. You’re worried about your monthly payments going up You don’t have a lot of money to put down on a house.   You’re worried about qualifying for a loan. You don’t have perfect credit.

If any of these things describe you, then an FHA home  loan may be right for you. Why? FHA home loans offer many benefits and a level of security that you won’t find in other loans including:

Low cost: FHA home loans have competitive interest rates because the federal government insures the loans for lenders.

Lower down payment requirements: FHA home loans have a low 3.5% down payment and the money can come from a family member, employer or charitable organization as a gift.

Easier qualification: Because FHA insures your mortgage, FHA mortgage lenders may be more willing to give you FHA home loan terms that make it easier for you to qualify.

Less than perfect credit: You don’t have to have perfect credit to get an FHA home loan. In fact, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA home loan than any other mortgage program.  

More protection to keep your home: The FHA has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure.

FHA insures loans for lenders against defaults - it does not lend money or set interest rates. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. An FHA-approved lender can help you start the loan application process.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, a condominium or a manufactured or mobile home (provided it is on a permanent foundation).

What kinds of FHA home loans does FHA offer?

Fixed-rate loans - Most FHA home loans are fixed-rate mortgages (loans). The advantage of a fixed-rate mortgage is that your interest rate stays the same during the loan period, so you know exactly how much your monthly payment will be.

Adjustable rate loans – First-time homebuyers can be a little stretched financially. With FHA’s adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (CMT) to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum FHA home loan that the interest rate on your FHA home loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate. The advantage of selecting an ARM is that you may be able to expand your house-hunting value range because your initial interest rate will be low, as will your payment. Click for a more in-depth explanation…

Purchase/Rehabilitation loans – Sometimes you might see a home you’d like to buy, but it needs a lot of work. FHA has a loan for rehabilitating and repairing single-family properties called the SF Rehabilitation Loan program (203k). You can get one loan which combines the mortgage and the cost of repairs. The mortgage amount is based on the projected value of the property with the work completed. The advantage of this loan is that you can buy a home that needs a lot of work, but have only one mortgage payment, and you can complete the repairs after buying the home.

Read more about these loans.

Indian Reservations and Other Restricted Lands – A family who purchases a home under this program can apply for financing through an FHA-approved lending institution such as a bank, savings and loan, or a mortgage company. To qualify, the borrower must meet standard FHA credit qualifications. An eligible borrower can receive approximately 97% financing and use a gift for the downpayment. Closing cost can be financed; covered by a gift, grant or secondary financing; or paid by the seller without reduction in value. More… 

How do FHA-insured loans compare to subprime loans?

Subprime loans are loans designed for homebuyers who don’t have a strong credit history or can’t qualify for a regular or prime loan. Lenders charge a high interest rate on subprime loans because the risk that a homebuyer may not make their payments is high. Because FHA insures the lender against this risk, the interest rates on FHA-insured loans are generally among the lowest in the market. Most subprime loans carry interest rates at least 3 percentage points higher than an FHA-insured loan. On a $100,000 mortgage, the monthly payment for a subprime loan would be over $200 a month higher than an FHA-insured loan.

The majority of subprime loans are also ARMs, where the interest rate can change a lot and greatly increase your monthly payments. Most FHA-insured loans are fixed-rate loans where the mortgage payment always stays the same. If you have an FHA-insured ARM loan, the rate can’t go up by more than one or two points in a year. The fees that lenders charge their borrowers for processing a subprime loan are also generally higher than on an FHA-insured loan.

Most subprime loans carry a heavy prepayment penalty that you must pay if you want to refinance your loan to a lower interest rate. These penalties can cost you hundreds or even thousands of dollars. There is never a prepayment penalty on an FHA-insured loan. You can refinance at any time and not worry about paying any penalties.

Unfortunately, because they don’t know these facts, many homebuyers who could qualify to buy a home with a fixed-rate FHA-insured loan only apply for subprime loans. Check out an FHA-insured loan before settling for a subprime loan!

How do FHA home loans compare to conventional loans?

Conventional loans usually require a larger downpayment than FHA and if you have less than perfect credit you may not qualify for an affordable mortgage with a low interest rate . The best thing to do is compare the cost of the conventional loan to an FHA-insured loan line-by-line. What are the fees for each? What is the interest rate? How much is the mortgage insurance? How much downpayment is required? For some borrowers, a conventional loan may be less expensive. For many others, getting an FHA-insured loan is the way to go.

Do you have to buy mortgage insurance on an FHA home loan?

Yes – as you will with most loans.

The Housing and Economic Recovery Act of 2008 provides for a one-year moratorium on the implementation of FHA’s risk-based premiums beginning October 1, 2008.  Consequently, effective with new FHA case number assignments on or after that date, FHA will no longer base its mortgage insurance premiums on a combination of credit bureau score and loan-to-value ratio.  The new premiums (upfront and annual) to be implemented for all loans for which a case number is assigned on or after October 1, 2008, are described below.  Mortgagee Letter 2008-16 is rescinded in its entirety.  Please note that certain parts of that mortgagee letter are retained and reiterated in the guidance that follows.

UFMIP= Upfront Mortgage Insurance Premiums:  FHA home loans will charge an upfront premium in an amount equal to the following percentages of the mortgage: 

Purchase Money Mortgages and Full-Credit Qualifying Refinances = 1.75 Percent Streamline Refinances (all types) = 1.50 Percent

Most home loans require mortgage insurance when your downpayment is less than 20% of the sales price. On conventional and subprime loans, mortgage insurance is provided by private companies. Whether private mortgage insurance is less than, equal to, or more than an FHA-insured loan’s insurance will depend upon the loan program and your qualifications.

Compare the cost of FHA home loan home loan compare  to subprime and conventional types of loans over the life of your loan. Then compare how much each one costs monthly. With the protection and value you get from an FHA home loan you will find it’s a very good deal.

 

 

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By mid 2007 house prices were still rocketing with the early predictions for 2007 to be that house prices would continue to rise possibly by around 10%.  That was before sections of the investment world realised that their money had been invested in the US’s collapsed housing market.  With that realisation, money was pulled out of the system and lending came to a near standstill.  We know the rest of the story.

First time buyers had been priced out of the housing market and were fearing that the longer they out of the market, the harder it would be to buy their own place.   Family members would contribute to a deposit, friends could co-own a property with a shared mortgage, or people decided saved and rented meanwhile.    Now, with house prices set to fall further in 2009 affording a house will become easier.  In fact, according to The National Association of Estate Agents (NAEA) the proportion of first-time buyers entering the housing market in November 2008 increased for the third month in a row.  First time buyers accounted for 10.4% of all properties sold, up from 8.3% in August. 

Cash buyers are the next winners.  Cash buyers will be able to buy a property without having to secure a mortgage and will be the crème-de-la-crème of buyers, so sellers will be more likely to lower their price even more to secure them. 

Investors buying property at auctions to renovate or to let out are winners too.  As reported in the Guardian, the average price of a house sold at an auction has fallen by 31.1% in the three months to November, compared with the same period a year ago. This is more than double the falls reported by Halifax and Nationwide. 

Homeowners wanting to move up the property ladder could also be winners.  Assuming a mortgage can be secured, the percentage fall in higher priced property will equate to more money in your pocket.

The main losers are those that bought at the height of the property boom and now are facing negative equity for a number of years.  For some homeowner, the recession and the expected redundancies may equate to mortgage payments being unaffordable.  As such, house repossessions are expected to rise by 67% from 45,000 this year to 75,000 by the end of 2009.  This includes homeowners and landlords whose rental income no longer covers the mortgages. 

In terms of life satisfaction, sellers waiting to sell are losing out on a daily basis.  They want to move house, yet are stuck where they are until they find a buyer.  In the meantime the value of their property is falling and they are losing money.  Estate agents are trying to drum up business by holding a high-street end of year sale.  Yet, moving over Christmas and the holiday season is historically a quiet time for estate agents and the housing market in general.

The housing market is likely to continue falling in 2009 and may bottom out by 2010.  A slow recovery is expected and banks, adverse to risk, are unlikely to lend at the levels seen in 2007.  Property will be in comparison, cheap and more affordable.  Borrowers will be low risk and able to pay either fairly small deposits with a higher interest rate or larger deposits with a lower interest rates.  As a result the market and prices will be more secure and making money on property will be through long term investment or property renovation. 

If you are thinking of buying or selling now, or in the near future, review your options carefully and work out how you can be a winner.

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According to the Land Registry, house prices in January were down by 15.1% since the same time last year.  Every region in England and Wales has seen property prices fall by at least 12% in the last year.  Buyers are waiting until they see that the market has bottomed out, and with the waiting, house prices are expected to continue falling for the next few months.  There are however signs that the freefall may be easing and soon may have reached the bottom. 

For example, with prices in prime spots in London being down up to 20% compared to the March 2008 peak coupled with the weak pound, buyers from overseas are seeking to pick up a bargain.  The window of a strong euro against the pound and the security of bricks and mortar in prime location adds further appeal.  Although Londoners themselves may object to property being snapped up it will be one small prop to help stabilise house prices.  Importantly, according to TimesOnline, cash sales, which are not recorded in the statistics produced by Nationwide or by Halifax, now account for a whopping 40 per cent of transactions as buyers turn to property as a more lucrative alternative to low-paying deposit accounts.

Mortgage availability is beginning to see change.  In January, mortgage approvals held steady at 31,000.  Although this is half of what it was last year, they have averaged 31,000 for the last six months.  Mortgage lenders typically want a deposit of 20% of the purchase price which is a hefty sum to secure.  Saving for a deposit takes time and in this time house prices fall.  However, Northern Rock will soon begin to offer some 90% mortgages.  The Bank of England is expected to lower base rates again and is also likely to increase the amount of money in the British economy, both of which will improve the supply of funds for mortgages.

The current low interest rates, although will not lead to a sudden housing market revival, do make loans more affordable which will be another positive support for both new and existing borrowers.  According to Halifax, mortgage payments have fallen from 31% of gross earnings for a new borrower in the first half of 2008 to an estimated 21% in January 2009.  The house price to average earnings ratio has decreased to an estimated 4.48 in December 2008 from a peak of 5.84 in July 2007; a fall of 23%. The long-term average is 4.0.  Potential buyers are noticing the opportunity: according to the Royal Institution for Chartered Surveyors enquiries from new buyers rose in January 2009 for the third successive month.  

Of course, there continues to be pressure on incomes with rising unemployment and the negative impact of the turbulent financial markets on the availability of mortgage finance, but the update is that there are signs that the freefall on house prices and drought of mortgage availability is easing.  As such, it could be wise to buy before house prices reach bottom as with low prices, low interest rates and increased mortgage availability an eventual recovering economy could bring house prices to rebound sharply.

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Despite aggressive interest rate cuts by the Federal Government to maintain jobs and even a stimulus package sent out to assist with finances, consumer confidence is still lingering around its lowest level in close to two decades. With everything much more expensive now and the dollar still staggering to keep up against to the Euro, consumers are more likely to remain pessimistic about the economy and market landscape until at least sometime next year, and this fact is something that hurts the housing market the most more than anything else.

Indeed, a combination of the mortgage crisis and weak consumer confidence will cause the real estate market to suffer extensively throughout the year, hitting the industry with a double blow that squeezes it from both ends. The mortgage mess has led to an enormous number of foreclosures that have brought thousands of homes to the market, while a weak response from consumers means that these homes won’t be sold anytime soon.

Lynn Franco, leading director of the Consumer Research Center of TCB, or The Conference Board, has commented on the issue and said that consumer confidence is at the weakest it has been in 17 years. The Conference Board is recognized as producing the Consumer Confidence Index, a representation of the optimism consumers feel towards the economy which is measured by their activities of spending and saving.

In regards to the latest CCI evaluations, Franco believes that the current values look troubling in terms of where the economy is heading overall, and especially in regards to the housing market. She says that what with the way consumers are feeling apprehensive towards the market, not only concerning current circumstances but also future possibilities, they will most likely put off such an enormous purchase until they start to believe that things are at least a little more stable in the economy.

There was a report by the CCI in early 2007 that recognized a swelling of consumer confidence at the time, something that influenced economists to predict that the rest of the year would witness a turnaround for the real estate industry. However, this never happened, and in fact, consumer confidence went down considerably for the remainder of the year.

Inflation has had a considerable impact on consumer spending too, and especially in regards to real estate. With the cost of fuel prices and food at the level they are currently, very few people are willing to commit to the opportunity of buying a home, seeing it as a risky maneuver that can significantly burden them financially. Furthermore, employment is seen as something that is at risk for people across the nation, with job layoffs a very real threat currently for hundreds of individuals. When taking these aspects and seeing the big picture, it comes as no surprise that the housing market is suffering through one of the toughest times in decades.

Even though homes may been cheaper now than they have been in years, buyers are sitting on the sidelines still because they fear that their credit scores aren’t good enough to warrant finding a loan that can purchase them a home. Others are simply waiting it out and wanting to see how low prices are going to drop until they feel there’s a good enough opportunity to take the plunge into purchasing a new home.

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Florida Home Loans, 97% Financing

Whether you’re a Florida first-time home buyer or a seasoned veteran, finding a great Florida home loan  is often stressful and time-consuming. FHAmortgagePrograms.com helps streamline the Florida home loan process. 

Here’s how it works:

Complete our simple, Florida home loan request Receive up to 4 offers from Florida home loan lenders Compare Florida mortgage rates and terms for each loan Choose the Florida home loan that fits your needs

 

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Florida home loan specialist

 

For the Florida home buyer coming up with the down payment is often one of the most difficult challenges to becoming a Florida first-time homeowners. Fortunately, today there are numerous Florida home loan  programs available that allow Florida home loan applicants to contribute as little as 3-5 percent of the purchase to purchase a Florida home.

 

For example, in order to buy a $150,000 Florida home, a borrower could get away with putting $4,500 down compared with $30,000, the traditional 20 percent down payment. Of course, low down payment loans do require Florida home loan applicants to meet certain criteria. Typically, Florida  home buyers will need to have a good credit history that demonstrates their responsibility with borrowed money. They will also be required to provide proof of sufficient income for the home purchase a Florida home and they will need to have enough cash on hand to cover both the down payment and the mortgage closing costs.

These Florida mortgage programs have made homeownership affordable for millions of Florida home loan applicants, but there are some drawbacks to making a minimal down payment on a Florida home loan, like having to pay private mortgage insurance (PMI). With a low down payment home loan, the Florida  lender takes on more risk than a 20 percent down mortgage. In order to reduce this risk, the borrower will be required to pay PMI until your equity reaches roughly 20 percent. That means paying an extra several hundred dollars in Florida mortgage fees each year. Still, for many Florida first-timers, the additional future costs is often worth the thrill of owning their first Florida  home.

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