Florida Mortgage : Learning Center

Word on the street is that fixed interest rates for home buying shouldn’t start significantly increasing for the next 6 months.  That’s great news considering interest rates are still available in the very low 5% range for qualified buyers seeking a FL FHA loan, VA home loan or Fannie Mae conventional  mortgage; and with no discount points.  Whether you are buying your next home as a seasoned investor or FL first time home buyer; your FL Realtor will amaze you with current reduced home prices.  Over the weekend a client called about their desire to purchase their dream home in Key West, FL .  Built in 2007, their 1,880 square foot , 4/2 vacation home was listed under $50,000!  Even Condominiums in Cocoa Beach, FL are at ridiculous reduced prices and many second home or vacation home buyers are taking advantage.  But keep this in mind. Although interest rates are down and home prices are down everywhere in FL; so too are the qualifying debt ratios for your FL  mortgage approval.

When considering a new home loan, FL mortgage professionals must review and determine qualifying debt ratios.  This is done by dividing the home buyers monthly debts (credit cards, auto, boat, student loans) by their gross monthly income.  Fannie Mae has reduced their debt ratio maximum to 50%.  So, for example, if a home buyer has a million dollars in the bank, and credit scores over 800 (superb), and puts 20% towards a down payment, but their debt ratio is 56%; there is a very good chance they will not obtain an approval.  The same holds true for many FHA first time home buyers; except the qualifying debt ratios may be as low as 45%. 

There are ways to achieve a lower debt ratio and your FL mortgage professional is the first one who may have the answers.  Don’t lose your next home by not talking to someone with experience, first.  The mortgage underwriting squeeze does need to ease a bit.  For now, one can only hope that when interest rates start climbing and home price begin increasing as homes appreciate; that home buyers remember to begin their FL home search with speaking to an experienced FL mortgage professional.  Got a question with your next home buyer?  Contact me at info@beechtreemortgage.com anytime.

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