Home Buyer

ARE YOU LOOKING TO BUY A SINGLE FAMILY HOME OR A CONDO OR A TOWN-HOUSE

Home Mortgages

A home mortgage is a big personal financial commitment. It is important to choose the right kind of home mortgage to save money and headaches in the future. The right home loan can save thousands of dollars in the long run. We are committed to helping you choose the right mortgage for your needs.

First, we identify the purpose for your purchase and then we’ll determine a loan structure that fits your financial budget.

Purpose

The home mortgage selected should fit the purpose of the homebuyer.

The Loan Structure

The loan structure or the type of loan depends on how the borrower plans to pay for the loan. This is where interest rates and payment amounts vary. As a broker we can help you choose the right loan structure and customize it to your needs.

For example, if you’re looking to settle down in one home for a long period of time we would recommend a fixed rate mortgage.

A fixed rate mortgage is the most common type of mortgage. It gives the borrower long-term stability and predictable monthly payments over either a 30 or 15-year term. The fixed interest rate guarantees the interest rate will remain the same regardless of the market volatility.

“There are thousands of different mortgages on the market at the moment, all offering something different, something similar but essentially offering one of two types.”

Repayment and Interest Mortgages

In a Repayment and interest mortgage you will have to pay back the specified mortgage amount plus the interest in a specified time. For example if you borrowed $100,000, you will see the balance becoming increasingly smaller over the term of the loan.

Interest Only Mortgages

In an Interest only mortgage you only pay the interest on your mortgage. However, when the term of your mortgage is over you are still left with the initial buying fee of your house. Using the above example, this would be $100,000 still left to pay.

There are loans for almost everyone in different scenarios.

There are options for you

  • If you’re looking for a mortgage and your credit score is low
  • If you don’t have a lot of cash and want to quality for mortgage without putting a large downpayment
  • If you are looking for a loan that’s larger than 453,100 (jumbo loan)
  • If you need money to lower your interest rate on debt
  • If you need money to renovate your home

 

Condo Mortgages

A condo mortgage is more complex than buying a single family or town home. That’s because condo guidelines are different than single family homes.

Unlike homes, condominiums are part of larger buildings, and the condo association often has its own documents and by-laws for allowing buyers to purchase a unit in the building. As a result, lenders must consider not only the buyer but also the rules of the building and the condo association before approving a mortgage.

If you’re looking to get a great deal on a Florida condo, it is possible to find units in a building you want and qualify for a mortgage that fits your financial needs but there are some things you should know.

Things To Know

A conventional mortgage for a condo in Florida requires the conventional mortgage down payment of 20 percent. However, The Federal Housing Administration (FHA) provides for mortgage insurance to allow buyers to purchase a property even if they don’t have the full 20 percent down payment. FHA-insured loans allow for buyers to put as little as 3.5 percent down in the purchase of the property. There are some other requirements that the buyer must meet.

It is very important that the buyer pay close attention to the rules that the building and the condo association have in place.

Some condo associations are flexible and allow buyers to take out any loan. Other condo associations require that buyers stick with the minimum 20 percent down.

In some rare cases, condo associations require that buyers put more than 20 percent down – some upwards of 35 percent – and others do not allow buyers to hold a mortgage at all, meaning the buyer must pay cash for the property.

When buying a condo in the Sunshine State it is critical to work with the right mortgage professional who knows how to read and decipher condo financing requirements and has access to products and programs that meet all your needs.

On the Market for a Non-Warrantable Condo?

  • Easy condominium approvals with a limited review process
  • Files with limited review response in AUS need only minimum evaluation
  • Up to 90% LTV primary residences
  • Up to 75% LTV for second homes
  • Application to closing in 25 days or fewer
  • If you need money to lower your interest rate on debt
  • If you need money to renovate your home

    
Contact us for more information here or learn more about David A. Krebs.


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