Mortgage in Florida
Sunshine, beaches, palm trees, and oranges - these are all words that people use to describe The Sunshine State. Florida is a favorite of retirees and young people alike, seeking a life of sun and warmth. Although it has historically been a more popular second-home state, many people now choose Florida to live, work, and raise a family. It's relatively inexpensive, with an average list price under $300,000 for a home and a meager $150 per square foot. To see how much a move to the sun will cost you, use our Florida mortgage calculator!
Florida Mortgage Calculator: The Sun Is Closer Than You Think!
Whether you're looking to buy a primary residence or second home in Florida, there's a loan for you!
- Florida conventional mortgage: Most people purchasing homes in Florida choose a traditional mortgage. This type is the only one that will work for vacation properties. To qualify, you'll need a minimum credit score of 620, a debt-to-income ratio below 50%, and a minimum down payment of 20% (you can do less, but you'll need to pay mortgage insurance). Second-home loans are typically more stringent, requiring a minimum of 20% down at all times and a higher credit score.
- Florida FHA mortgage: Since most Florida properties are under the FHA loan maximum, many people moving to The Sunshine State elect to have an FHA mortgage. It requires as little as 3.5% down, and it has a surprisingly low minimum credit score of 580. You can even get a loan with a credit score as low as 500, but that requires 10% down.
- Florida VA mortgage: If you're a veteran, Florida homeownership might be closer than you think! VA loans require a minimum score of 660, but they have plenty of benefits, including offering nothing down and never requiring any form of mortgage insurance!
If you're looking to move to Florida, all three loans are an option. However, if this will be a second home, use conventional mortgage terms in the Florida mortgage calculator.
First-Time Homebuyers in Florida
The Florida Housing Finance Corporation offers many programs for would-be homeowners. Here are the ones that you'll need to know!
Florida offers 30-year fixed-rate discounted mortgage loans to first-time homebuyers. Eligible borrowers can also apply for the Florida Assist Second Mortgage program to help with down payment and closing costs!
Eligibility Criteria: To qualify, you must meet income and purchase price limitations. You must also complete a homebuyer education class and have a qualifying credit score.
Florida Assist Second Mortgage
The Florida Assist Second Mortgage program is an optional add-on for anyone who qualifies for Florida-sponsored home loans. These second mortgages range from 3%-5%. One of the plans offers a second mortgage that the state forgives at a rate of 20% per year over a five-year term.
Eligibility Criteria: Anyone who qualifies for the homeowner loans above will automatically receive these second mortgages if they choose to take advantage of them!
Florida Mortgage Credit Certificate
The mortgage credit certificate provides eligible borrowers an income tax credit of up to 50% of their mortgage interest or $2,000, whichever is less.
Eligibility Criteria: Borrowers must meet income and purchase price limitations. These restrictions vary from county to county.
Florida Mortgage Calculator: You Can Enjoy the Sun for Less Than You Think!
Moving to the sun might be more affordable than you think! Use our Florida mortgage calculator to explore different possibilities and see what monthly payment you might have for your dream home!