Florida has certainly seen the ups and downs of a real estate market this past decade, certainly one that we don’t want repeated, at least for those on the wrong side of the transaction. But things are changing. The market is improving and slowly Florida is providing housing opportunities not seen in years. And it could not have come at a better time.
We all know what happened not just in Florida but with real estate in general across the country. Home prices have come down in Florida to levels that now it can make sense not only for the first time home buyer to get their toes wet but investors now have the opportunity to step in and invest in Florida real estate.
Interest rates are also at unheard of levels and even though the mantra of “record low mortgage rates” seems to be a broken record over the past three years mortgage rates can be found in the low to high three percent range. You heard that right.
But there’s also something unique about the mortgage market in Florida that wasn’t all that prevalent in the last decade…common sense.
That’s right. Today’s mortgage market, while extending attractive rates to borrowers, has been homogenized so to speak. There are not a whole lot of choices that tout exotic loan packages that end up in some portfolio stuffed with derivatives insured by some European conglomerate.
No, it’s the plain vanilla mortgage that’s out there. And that’s what helping make Florida real estate an attractive offering right now.
Mortgage loan programs used to be rather dull. Get a fixed rate or get an adjustable rate and move on. Yet a bunch of creative types took mortgage programs to a whole other level with loan packages that even loan officers couldn’t understand, much less the borrower.
Not today. Today the underwriting guidelines essentially ask for four basic things:
- You have a job and you can prove it
- You have enough income to afford the house and you can prove it
- You have enough money for a down payment and you can prove it
- You have good credit and you can prove it
Mortgage lending has gone back to basics and revived loan approval guidelines that have again established real estate in Florida as a solid investment. When people can afford the homes they buy, they have jobs and they contribute to the local Florida economy they’re a stabilizing force.
Home values appreciate due to natural market forces. Loans are less likely to default due to the implementation of bona fide lending policies. And people are generally happy about their lives.
Now Florida real estate may have hit bottom in certain pockets and with interest rates where they are it might be the best time to buy Florida real estate ever. Ever. And this time it’s without smoke and mirrors, speculators and mortgage loans offered by companies who closed up shop loan ago, never to open their doors again.
Questions? We are available to assist you 7 days a week. For quick service please submit the “Request Contact” form at the top right side of your screen. Mobile users can find the short Request Contact Form here. Please also be sure to visit www.FiveStarsMortgage.com for the latest mortgage info.