Loans to buy a home in Florida, if you are a permanent resident
We have
four options you can apply for if you have a Green Card, live in Florida and
are looking to obtain a loan to buy a home.
Loans to buy a home in Florida
Bank of America
In Miami,
Bank of America has the Community Affordable Loan Solution program, which is
available in African-American and Latino communities.
The project
uses credit guidelines based on factors such as timely rent payments, utility
bills, telephone and auto insurance. No mortgage insurance or minimum credit
score is required. But you can also opt for a basic mortgage loan.
Wells Fargo
To qualify
for a Wells Fargo advance, you need to fill out a pre-qualification form. The
bank will evaluate your application based on your credit history, your budget,
and your transaction and payment limits.
Florida First
The Florida
First program provides mortgage loans backed by government entities, such as
the Federal Housing Administration (FHA) or the U.S. Department of
Agriculture's Direct Loan program (USDA-RA).
Qualified homebuyers can obtain a 30-year fixed-rate mortgage loan.
Florida FHA Loan
Mortgage
loans insured by the Federal Housing Administration, a division of the U.S.
Department of Housing and Urban Development (HUD).
Financing
is designed to help people with lower credit scores, limited down payment
savings and moderate income levels.
If you're
wondering how to buy a home in Florida, you're not alone. We get feedback from
people who think they'd like to buy a home, but aren't really sure what they
need to qualify for a loan. We have some tips on buying your home in Florida
and what you need to get started. Here is some information on the
basics.
Florida
Home Buying Requirements: Credit
Ideally,
you should have a FICO score of 620 or higher. However, there are some lenders
who may still offer a mortgage to consumers with a score as low as 580. It will
depend on other factors in your financial status, but the stronger your credit,
the better your chances of getting a good mortgage.
Down Payment Options in Florida
You have
several options when it comes to down payments. If you or your spouse have ever
served in the U.S. military, you may qualify for VA financing, which does not
require a down payment. There are some other 100 percent financing options
available, but there will be strict guidelines and requirements that must be
followed.
FHA is a
popular federally insured loan product that requires a down payment of 3.5
percent of the purchase price. With an FHA loan, you will get a prime rate and
the loan-to-debt rates are very fair.
For
conventional financing, lenders like to see a down payment of at least 20
percent. However, there are conventional loan products that allow you to put
less down, in the range of three to 15 percent. In these cases, your mortgage
lender will often require mortgage insurance, which adds a little more to your
monthly mortgage payment.
In general, the requirements for buying a home in Florida include:
- Valid
contract.
-
Representation by a real estate professional.
-
Financing, including closing costs.
7 Steps to Buying a Home in Florida
Once you
have familiarized yourself with the Florida real estate market, you should
follow these steps to ensure that the entire process is smooth and hassle-free.
1. Involve a Florida Real Estate Agent
The first
step when it comes to buying a home is to hire a Florida real estate agent. A
great real estate agent will be reliable, have the information you need, and
represent you effectively. This will make the process easier and help you find
a home that fits your lifestyle.
2. Find a property
Once you
have found your real estate agent, you can work with them to find the right
property for you and your family. There's a good chance your real estate agent
has access to the Multiple Listing Service. Before making a final decision, you
may want to look at different options so you can determine the best property
within your budget that fits your lifestyle goals.
3. Request a professional home inspection
A
professional home inspection will help establish the soundness of the
foundation and structure while identifying pest infestations, the presence of
mold, and problems related to electrical, plumbing, drainage and
heating/cooling systems.
4. Mortgage Pre-Approval
Buying a
home can be an expensive undertaking. Once the property has been inspected, you
must make sure you have the financing you need. If you want to get a mortgage,
you must get your pre-approval letter. If you are paying cash, you should
proceed with making an offer.
5. Make an offer
In Florida,
making an offer will involve the use of a formal contract, which sets forth
specific requirements and terms agreed to by both the buyer and seller. Florida
law does not require you to have an attorney represent you at this time. This
means that you may choose to work with your real estate agent or with an
attorney.
6. Acceptance of the Offer
The period
following the acceptance of your offer will be exciting. However, you should keep
a level head to ensure that all steps are completed without any major problems
or issues. After acceptance of the offer, you will be asked to sign the
contract and pay the money.
7. Contracts and Closing
Towards the
end of the process, your real estate agent will draw up a purchase contract
that captures all the details of the transaction. This contract must be signed
by both the seller and the buyer. The final step would be to have a closing
meeting. After the attorney and real estate agent have verified that everything
is as it should be, the funds will be transferred to the seller and you will
receive your keys.
Towards the
end of the process, your real estate agent will draw up a purchase contract
that captures all the details of the transaction. This contract must be signed
by both the seller and the buyer. The final step would be to have a closing
meeting. After the lawyer and real estate agent have verified that everything
is as it should be, the funds will be transferred to the seller and you will
receive your keys.
