Conventional:
This type of loan is presented as the perfect choice for those clients who, being residents or citizens of the United States, wish to purchase a home or make real estate investments.
The conventional loan program is aligned with the limits established by Fannie Mae and Freddie Mac, semi-governmental entities. By adhering to these established standards, the loans not only comply with regulations, but clients benefit from the favorable conditions supported by these institutions.
To take into account:
- Typically, the repayment period for a conventional loan is between 15 and 30 years.
- Down payment starts at 3%.
- Conventional loans are for properties valued at $766,550 or less.
- A high credit score will help you have better interest rates.
- If a 20% down payment is possible, you will free yourself from the requirement of purchasing private mortagage insurance (PMI) and save money.
- Ideally, your total debts should not exceed 46% of your total income.
Jumbo:
Program designed for properties valued at $766,550 or more.
If you are considering making real estate investments, whose value exceeds $766,550, you will have to apply for a Jumbo loan, which is designed to provide you with financial flexibility to undertake larger real estate investments.
To take into account:
- Because Jumbo loans are for higher amounts, the mortgage becomes a slightly riskier loan and for this reason, the requirements to qualify tend to be stricter.
- Credit score must be 68o or higher. However, it is possible to get approved for a Jumbo loan with a slightly lower score.
- You must be able to make a down payment between 10% and 20%.
- Ideally, you total debts should not exceed 45% of your total income.
- At the time of closing you will need to have a reserve of 6 moths in savings, equivalent to the monthly mortgage payment. After 10 business days of having closed the negoitation for the purchase of the property, you will be able to use this money.
Hard Equity | Private Money
Do you need an immediate loan? This program offers you an effective financial solution.
The Hard Equity or private money loan is a solution for clients who, due to various circumstances, do not meet the requirements established by conventional programs. This loan alternative is a flexible short-term solution, since the transaction can take place in a record time of just 10 business days and with a maximum loan duration of up to 2 years, which makes it a particularly attractive option. for those looking for a quick injection of liquidity for their investment portfolio.
To take into account:
- The requirements to apply to this program are less strict, therefore, the application process is easier.
- In this program, the valur of the property takes on central importance, since it is used as collateral to back the loan.
- Paying a hard money loan before 6 months has a penalty.
- This loan works very well for investors who want to buy a property to improve it and then sell it, loans known as “Fix & Flip”
Home Repair and Renovation
This type of loan is ideal for those looking to take advantage of opportunities in the real estate investment market.
The Flix & Flip loan provides financial resources for investors who need to finance a property that is not in good condition and must be repaired in order to sell it at a better price, thus optimizing the initial investment.
Being a short-term loan, usually 2 years maximum, the terms and conditions are specific, including interest rates that reflect the nature of the investment.
To take into account:
- This program is designed for investors who have experience in home repairs, improvements in the fix & flip concept.
- Minimum loan amount from $150,000.00
- Ease of obtaining up to 100% of the cost of repairs.
- The purchase contract and estimate for repairs will be necessary.
- Simplified process to close your loan in just 30 business days.
- Minimum credit score of 580.
- Income tax returns for the last 2 years are required.
Construction Loans
If you are looking to build a property in the state of Florida, this loan is ideal for you.
A construction loan provides the funds necessary to build a property.
Available loan funds are typically released in a series of advances (or “draws”) to pay expenses while the property is being built. Generally and if the client requires it, the construction loan automatically converts into a fixed, long-term mortgage loan of up to 30 years.
Other times, it is simply a short-term loan (up to 18 months) that finances the construction of the property.
To take into account:
- Down payment as low as 10%.
- Financing is secured before construction of the home begins, You just need to be approved in advance.
- The construction loan is for period of up to 18 months.
- Monthly interest-only payments.
- Once construction is completed, there is the option to convert this loan into a 30-year fixed mortgage.
No Incoming Verification
We offer the opportunity to access the financing you need without the need to verify your income.
Sometimes income verification can be an obstacle, which is why this program is flexible and makes it easier for you to expand your strategic investment portfolio. This option is ideal for business owners, executives or professionals who work independently.
Bank deposits
This program is ideal for clients who do not show enough net income on their tax returns to be able to support a mortgage loan. This program is an ideal option to be able to finance a property, using the last 12 bank statement as a alternative source of income.
Through this program, we will strategically use bank deposits from the last 12 months so that the client is approved and can achieve their real estate goals.
DSCR
The DSCR loan qualifies the property based primarily on its rental income rather than the borrower’s personal income, making it an excellent option for investors, self-employed individuals, or clients with complex tax returns. If the property generates enough rental income to cover the monthly mortgage payment, financing may be possible.
To take into account:
• No personal income verification is required.
• Qualification is primarily based on the property’s rental income.
• Ideal for real estate investors building or expanding their investment portfolio.
• Available for purchase or refinance of investment properties.
• Down payment requirements and interest rates may vary depending on credit score, property type, and cash reserves.
• Short-term rentals such as Airbnb may be eligible in certain cases.
• Higher credit scores may help secure better financing terms.
FHA
This program offers more flexibility for first-time home buyers. The down payment is lower and the financing terms are more flexible, making home purchasing more accessible for those looking to enter the real estate market.
To take into account:
- The FHA loan is avaliable for anyone, but is the best option for clients who have never owned their own home or have not purchased a property in the last 3 years.
FHA Loan Benefits
- It is not necessary to have a high credit score.
- Down payment as low as 3.5%.
- Low interest rates.
- Low closing costs.
- There are also FHA loans for refinancing, debt consolidation, or home renovation.
- Homebuyers can choose loan terms that fit their needs.
VA Loans
This program requires no down payment, which reduces the financial burden in addition to having competitive interest rates and favorable terms. These terms are designed to provide additional support to veterans and their families, allowing them to enjoy the stability and security that comes with homeownership.
This program includes members of not only the major branches, but also the National Guard and Reserve.
What can you do with a VA loan?
- Buy a new house.
- Make improvements to your primary home.
- Refinance an existing VA loan through the interest rate reduction refinance loan program.
Reverse Mortgage
Federally regulated program, designed specifically for people over 62 years of age.
If you are over 62 years old and own a property but need a financial respite, this option is ideal for you, since it allows the appreciation of your property to work in your favor and instead of making monthly payments for your home, you receive payments month by month. The Reverse Mortgage is a solution that relieves financial pressure, allowing you to enjoy your retirement with financial flexibility and peace of mind.
Benefits of a reverse mortgage
- You can convert the capital of you property to payments to youserlf. You can use this to pay your debts or credit cards, invest in another property, repairs or for a well-deserved vocation.
- There are no restrictions on how you use your money.
- You have the opportunity to choose how the funds are disbursed.
- In many situations, the income you will receive through a reverse mortgage does not have to be reported for taxes.
- You don’t need to move out of your house.
Condo-hotels:
The condohotel is an innovative housing concept, fusing the comfort of a condominium with the luxurious amenities of a first-class hotel. By opting for this modality, you not only ensure the privacy and security inherent to a residential environment, but you also open yourself up to a world of exclusive services.
Frequently Asked Questions
Depending on the loan program and the client’s profile, the lowest payment can be as low as 3.0% of the property value.
Pre-approval will be issued within 24 hours, as long as your loan officer has all the required documentation.
Income, debt, credit score, tax returns, employment history, reserves for down payment and closing cost
The down payment is a partial payment in advance of the value of the property, this money is given to the title company or a real estate attorney to formalize the beginning of the process.
Closing costs are those related to the final part of the purchasing process and are divided into 4 items:
- Bank fees
- Government fees and taxes
- Escrow account deposits
- Title company or real estate attorney fees.
You should refinance when the mortgage rate is at least 1.5% or preferably 2% lower than your current loan rate.
Credit score from the three mayor credit agencies, debts, payment history, delinquencies, length of tradelines, among others.
A home appraisal is a professional and impartial assessment of the value of a home, which is required by the bank when applying for a mortgage or refinancing. The appraisal ensures that the borrower is getting a fair price for the property and assures the lender, the property is worth it’s price. The loan amount will be determined by the lowest amount between selling price and appraised value.
It depends on several factors such as your current financial situation, the value of the property, your credit score, money for the down payment, whether you are a local or foreign client, among others. At New Florida Lending we can advise you to evaluate all the options and help you make the most appropriate mortgage decision.
It is paid against the amount borrowed (principal), interest, taxes and property insurance. You should keep in mind that if you buy in a condominium, you incur monthly payments to the association- HOA
You can have several. However, when applying for another mortgage, banks require some additional documents when a client has more than one active mortgage loan.