A conventional loan is a loan backed by either
Fannie Mae or Freddie Mac, the two entities which comprise the Federal Housing
Finance Agency. More than half of all new Florida mortgage loans are
conventional loans, which include special Florida mortgage programs such as the
Florida 3% down mortgage. The most common
non-conventional loans are FHA loans, VA loans and USDA loans.
The 3% Florida Condo Lenders program is not a new program.
However, it's a decidedly cheaper option as compared to the FHA. The Federal
Housing Administration has raised its mortgage insurance rates so many times
that its benchmark product has moved to second place.
If you're buying a Florida home and plan to make a low down
payment; or refinancing one and have little Florida home equity, look to the 3%
Florida Condo Lenders program. It's fast, it's cheap, and the rates are great.
Get started with a free, no-obligation 3% Florida Condo
Lenders online mortgage rate quote. View today's rates and see how much Florida
home you can afford. Because with lower down payments and smaller PMI, your Florida
home-buying dollar should get you much, much more.
FLORIDA CONDO LENDERS
• 100 % VA
Condo Mortgage Loans Down to a 550 fico!
• 96.5% LTV on FHA Approved Owner Occupied Condos= 3.5% Down payment!
• 95% LTV on
Owner Occupied Condos= 5% Down payment!
• 90% LTV on
Second Florida home Condos= 10% Down payment!
• 80% LTV on
Second Florida home Condos= 20% Down payment
• 80% LTV on
Investment Condos= 20% Down payment.
In comes the Florida VA mortgage to the rescue for
Condo Buyers and current Florida Condo Florida homeowners. To qualify for a Florida VA Mortgage the Florida condo
must be on the VA Approved Condo list, which includes many existing
complexes. You can search for VA Approved Condos yourself, or let us
assist you, we are here to help.
15, 20 and 30-year fixed rate terms available!
Read a complete Q&A about the
new 3% Florida Condo Lenders program here. This post will remain
active for archive purposes.
For today's Florida home buyers, there's a large mix of low-
and no-down payment mortgages from which to choose.
Fannie Mae and Freddie Mac offer a basic 5% down mortgage.
The FHA's main product requires just 3.5% down. And, via the VA and USDA,
qualifying Florida home buyers can buy with no down payment at all.
There's an additional low-down payment program, too, and
it's known as the 3% Condo Lenders. 3% Florida Condo Lenders is a Fannie
Mae-backed product which allows for a 3 percent down payment, ultra-low
mortgage insurance rates, and a 100% gift from blood or by-marriage relatives.
3% Florida Condo Lenders: Commonly Asked Questions
The 3% Florida Condo Lenders program is available to all
U.S. Florida homeowners via Fannie Mae and Freddie Mac.
It's a true, three-percent-down payment mortgage program,
for which the 3% down payment may come as a gift. In many respects, it's
more aggressive that the FHA's benchmark mortgage product in that guidelines
are simpler and less-restrictive.
Here are some common answers to questions about the 3%
Florida Condo Lenders mortgage.
Is the 3% Florida Condo Lender sa government-backed mortgage
program?
Yes, the 3% Florida Condo Lenders mortgage program is backed
by the government. It's offered via Fannie Mae only. The program is not
available via Freddie Mac, nor is it available via the Federal Housing
Administration (FHA), Department of Veterans Affairs (VA) or the U.S.
Department of Agriculture (USDA).
What is the minimum down payment required with the 3%
Florida Condo Lenders mortgage program?
The 3% Florida Condo Lenders program requires a 3 percent down
payment, at minimum. The 3 percent minimum is based on the lower of the Florida
home's appraised value or purchase price. 3 percent on a $200,000 Florida home
purchase is $6,000 for down payment. By comparison, an FHA mortgage would
require at least $7,000 down.
Is the 3% Florida Condo Lenders program "cheaper"
than an FHA mortgage?
Yes, in many cases, the 3% Florida Condo Lenders
program is less expensive than an FHA mortgage. This is because the 3%
Florida Condo Lenders program does not require an upfront mortgage insurance
premium, and because its annual mortgage insurance rates are cheaper, too.
Mortgage rates are often comparable.
Can I use the 3% Florida Condo Lenders program for a
mortgage refinance?
Yes, Fannie Mae allows Florida homeowners to use the 3%
Florida Condo Lenders program for rate-and-term refinances only. It may be used
for a cash-out refinance. If you plan to use the 3% Florida Condo Lenders to
refinance a mortgage pre-dating June 1, 2009, however, consider the HARP
refinance first. HARP is a mortgage for underwater Florida homeowners and may
offer better loan terms, overall.
Are there property type restrictions for the 3% Florida
Condo Lenders program?
Yes, the 3% Florida Condo Lenders program is property
type-restricted. The program may only be used for single-family dwellings. This
includes single-family detached Florida homes, single-family attached Florida
homes, townFlorida homes, condominiums, co-ops, and rowFlorida homes.
Can I use the 3% Florida Condo Lenders for a 2-unit, 3-unit
or 4-unit Florida home?
No, the 3% Florida Condo Lenders program may only used
for single-family dwellings.
What is the maximum loan size allowed with the 3% Condo
Lenders?
The 3% Florida Condo Lenders mortgage program is capped
at a $417,000 loan size. Loan sizes for more than $417,000 are not allowed,
even in designated high-cost areas such as New York City, New York; Los
Angeles, California; and Montgomery County, Maryland where the local conforming
mortgage loan limit is $625,500.
What is the maximum purchase price for a Florida home using
the 3% Florida Condo Lenders program?
There is no maximum purchase price to use the 3%
Florida Condo Lenders mortgage program, per se, but 3 percent down on $430,000
is equal to $417,000. Therefore, if you're seeking to minimize your
out-of-pocket payments, purchase a Florida home for $430,000 or less.
Are there occupancy requirements for the 3% Florida
Condo Lenders mortgage program?
Yes, the 3% Florida Condo Lenders mortgage program
enforces occupancy requirements. The 3% Florida Condo Lenders is available
for owner-occupied properties only. You may not use the program for second Florida
homes or vacation Florida homes; or investment properties.
I have a renter in my former primary residence. Can I
refinance that Florida home using 3% Condo Lenders?
No, the 3% Florida Condo Lenders program is for
owner-occupied properties only.
What is the combined loan-to-value (CLTV) limit for
the 3% Florida Condo Lenders program?
The 3% Florida Condo Lenders is limited to a combined
loan-to-value of 97%. You may not use subordinate financing (e.g.; Florida home
equity line of credit, Florida home equity loan, "soft second") in
conjunction with a 3% Florida Condo Lenders mortgage.
What income documentation does the 3% Florida Condo Lenders
mortgage program require?
The documentation requirements for a 3% Florida Condo
Lenders loan are the same as for any other Fannie Mae-backed mortgage. Mortgage
applicants should expect to provide recent paystubs, W-2s and federal income
tax returns; as well as bank statements and other relevant paperwork. There is
no additional paperwork specifically related to the 3% Florida Condo Lenders program.
Does the 3% Florida Condo Lenders program enforce a
maximum Debt-to-Income (DTI)?
Yes, the 3% Florida Condo Lenders mortgage program
enforces a maximum DTI, which varies by down payment "source". Florida Mortgage
applicants making a down payment from their own funds may not exceed 45%
debt-to-income via the 3% Florida Condo Lenders program. Mortgage
applicants accepting gift funds for a down payment are limited to 41% DTI.
Debt-to-income is calculated by dividing your total monthly debt obligations
into your total verifiable monthly income.
How long does it take to close with 3% Florida Condo
Lenders financing?
The 3% Florida Condo Lenders program takes no longer to
underwrite than any other conventional mortgage. Approval times vary by lender,
but are often quite fast.
Does the 3% Florida Condo Lenders program require First-Time
Florida home Buyer counseling?
No, the 3% Florida Condo Lenders program does not require Florida
home buyer counseling for First-Time Florida home Buyers, or anyone else.
What mortgage products are available via 3% Condo Lenders?
The 3% Florida Condo Lenders program allows for
fixed-rate Florida mortgages only. Adjustable-rate mortgages (ARM) are not
available.
Can I choose the 30-year fixed rate mortgage with the 3%
Florida Condo Lenders program?
Yes, the 30-year fixed rate mortgage rate is available to Florida
home buyers and refinancing households using 3% Condo Lenders. ARMs are not available.
Can I accept a gift of down payment from my REALTOR or the Florida
Home seller?
No, a realtors may not provide the gift of down payment, nor
may any other interested party to the transaction. This includes the seller,
the mortgage lender, and the title representative, among others.
The 3% Florida Condo Lenders mortgage program does not
"expire". It's not like the Florida home Affordable Refinance Program
which was created to spur Florida housing and the economy. Fannie Mae's 3
percent down payment program is indefinite.
Can I choose the 15-year fixed rate mortgage with the 3%
Florida Condo Lenders program?
Yes, the 15-year fixed rate mortgage rate is available to Florida
home buyers and refinancing households using 3% Condo Lenders. ARMs
are not available.
Is private mortgage insurance (PMI) required with the 3%
Florida Condo Lenders mortgage program?
Yes, the 3% Florida Condo Lenders program requires that all
borrowers carry mortgage insurance.
For how many years must I pay PMI via the 3% Florida Condo
Lenders program?
The 3% Florida Condo Lenders program is via Fannie Mae,
which means that PMI requirements follow Fannie Mae rules. Via the program,
private mortgage insurance must only be paid until the Florida home reaches 80%
loan-to-value, and so long as 12 months have passed from the start of the loan.
Does 3% Florida Condo Lenders require upfront mortgage
insurance, like an FHA loan?
No, the 3% Florida Condo Lenders program does not require upfront
mortgage insurance premiums like an FHA loan. It only requires annual
mortgage insurance, paid monthly, until such time as 12 months have passed and
the Florida home reaches 80% loan-to-value.
Does 3% Florida Condo Lenders require a funding fee, like an
FHA loan?
No, the 3% Florida Condo Lenders program does not require a
funding fee like a VA loan. It only requires an annual
mortgage insurance premium, which is paid monthly. The annual mortgage
insurance is no longer required after 12 months have passed and after the Florida
home has reached 80% loan-to-value.
Does the 3% Florida Condo Lenders program require
minimum credit scores?
Yes, the 3% Florida Condo Lenders program requires a
minimum credit score, which varies by down payment source. All mortgage
applicants must show a credit score of 680 or better. However, mortgage
applicants accepting gift funds for a down payment must show a credit score of
at least 740. Your credit score is based on the middle of your three credit
scores, as reported by the major credit bureaus TransUnion, Equifax and
Experian.
What is the 3% Florida Condo Lenders minimum FICO score
if I am accepting a down payment gift?
For Florida home buyers accepting a gift of down payment of
any size -- even $100 -- the 3% Florida Condo Lenders program requires a
credit score of 740 or higher.
What is the 3% Florida Condo Lenders minimum FICO score
if I am not accepting a down payment gift?
For Florida home buyers making a down payment from their own
reserves/assets, the 3% Florida Condo Lenders program requires a credit
score of 680 or better.
Can I use the 3% Florida Condo Lenders program if my
credit score is below 680?
No, the 3% Florida Condo Lenders requires a credit
score of at least 680. If your credit score is below 680, consider an FHA
mortgage. The FHA allows for 3.5% down payment and does not enforce a minimum
credit score in many cases.
I am bringing 3% to my closing, but am also accepting a gift
to help with closing costs. What is the minimum credit score requirement in
this case?
For Florida home buyers bringing at least 3% of their own
funds to closing, the 3% Florida Condo Lenders minimum credit score requirement
is 680, regardless of supplemental contributions made by parents or other
family members.
3% Florida Condo Lenders restricts from whom a buyer can
accept gift funds. Buyers can accept from a relative, which includes a spouse,
child, or anyone else related by blood, marriage, adoption, or legal
guardianship. Gifts may also be accepted from a fiance/fiancee or a domestic
partner.
The 3% Florida Condo Lenders mortgage is a specialized
program and is not available through via all Florida Mortgage Lenders. If
you've been turned down for the 3% Florida Condo Lenders mortgage by your
primary Florida
mortgage lender,
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