Think it’s difficult or even impossible to purchase a home in 2024?
You may be surprised to learn that home ownership is quite feasible for many Florida residents. If you’ve been holding off on a home purchase because you believe you can’t possibly qualify for a loan, you’ll want to stop and read this article.
You don’t need perfect credit to purchase a home in Florida. You don’t always need an exorbitant down payment. And if you pick the right property home ownership may even be affordable.
See also: Your 2024 Roadmap to Buying Your First House
Here’s what you need to know.
How high must your credit score be to purchase a home in Florida in 2024?
While a better credit score is always preferable when buying a home loan, a low credit score doesn’t always serve as a hard and fast barrier.
Some loan programs allow you to qualify for a mortgage with a score as low as 500, as long as you meet other requirements.
However, the higher your score, the better your interest rates and loan terms. You’ll also have access to a greater variety of home loan programs if you can get your score up to 640 or higher.
Keep in mind your credit score is only one part of your overall financial profile. Lenders will also want to see a lower debt-to-income ratio (DTI), employment stability and savings patterns. They like to see you have some cash in reserve for emergencies, as well.
See also: Good Credit Score: Your Ticket to Better Financial Opportunities
What documents do you need to secure a mortgage in Florida in 2024?
If you plan to live in the home, mortgage underwriters will need the following documents for most home loans.
- Proof of income, including W2s, pay stubs, tax documents, and job offer letters.
- Bank statements.
- If using gift funds for a down payment, you will need a gift letter.
- Other records as required by the lender, such as divorce decrees, bankruptcy or foreclosure records or ID documents.
- If you haven’t established much credit, you can provide utility bills and rent to show proof that you’re making payments regularly and on time.
The specific documents you’ll need will depend on your individual circumstances. For example, if you’ve been employed for two years or more you can usually skip the job offer letter. If you’re self-employed, you’ll need to provide tax returns unless applying for a no income verification loan.
Your mortgage broker will provide you with a list of necessary documents when you apply for the loan. Nevertheless, having an idea of what they might ask for allows you to gather all those documents in one place so they’re ready to go when you need them.
How high are down payments in 2024?
Down payment requirements vary depending on the type of loan you’re seeking. VA and USDA loans offer 0% down payments.
Conventional and FHA mortgages generally require down payments of 3% to 3.5%. You’ll also need to save for closing costs.
Struggling to save for a down payment? A number of excellent down payment assistance programs exist. You may be able to cover your down payment with a second loan, a grant, or a combination of the two. You do not always have to be a first-time home buyer in order to qualify for some of these programs.
See also: How to Save for a Down Payment
Help for Your Home Purchase in 2024
Often, the process of purchasing a home feels more complicated than it has to be.
With the right guidance, your home loan purchase can be smooth, easy, stress-free, and even pleasurable.
Want to explore your options? Contact Alex Doce today. Alex can help you decide which loan programs are realistic for your circumstances and will discuss the next steps you’ll need to take to achieve your dream of home ownership.
