Florida Mortgage Rates

Mortgage in Florida

The real estate market in the United States has experienced significant growth in recent years, with the majority of homes being purchased through mortgage loans (you can use our mortgage calculator to estimate your future expenses). Florida, in particular, ranks among the top states with a high number of home loans. This article aims to address commonly asked questions about mortgage loans in Florida. Additionally, it highlights several prominent lenders operating within the state.

Best mortgage lenders in Florida

PenFed Credit Union

Pentagon Federal Credit Union, founded in 1935, initially catered specifically to members of the armed forces. However, it now welcomes applicants from all walks of life.

According to the official website, the minimum satisfactory credit score is typically 650.

For conventional loans with a credit score between 700 and 739 and a 20% down payment, the APR stands at 5.596% for a 15-year term, 6.078% for a 20-year term, and 6.548% for a 30-year term.

Anchor Home Mortgage

Anchor Home Mortgage operates as a mortgage broker, connecting borrowers with a wide range of lenders. While the broker does not offer specific credit rates, it serves as a conduit to multiple lending institutions. Its operations are focused exclusively in Florida and Georgia, with a partner network that includes over 50 banks and mortgage companies. To qualify for conventional loans, borrowers typically need a credit score of 620 or higher. The broker's commitment to ethical business practices is reflected in its A+ rating from the Better Business Bureau (BBB).

Gateway Capital Mortgage

Gateway Capital Mortgage is a mortgage lender that operates in several states. The company's website advertises very attractive interest rates: 4.902% for a 15-year mortgage, 5.578% for 20 years, and 5.594% for a 30-year mortgage. However, the website does not specify all of the assumptions that go into these calculations. The minimum credit score required for a loan is 620, and the minimum down payment is 5%. The company was founded in 2005 and has an A+ rating from the Better Business Bureau.

Rocket Mortgage

Rocket Mortgage, also known as Quicken Loans, holds the top position as a consumer lender in Florida and nationwide. It provides a diverse range of mortgage programs, including conventional fixed-rate 30-year mortgages with an APR of 7.199%, as well as variable rates, FHA loans, and VA loans. The typical credit score requirement for borrowers is 620, which is a common industry standard.

Average Mortgage Rate in Florida from 1978 to 2018

The chart shows average conventional mortgage 30-Year Fixed Rates in Florida.

Source: Federal Housing Finance Agency Monthly Interest Rate Survey

Information about the Housing Market and Real Estate Prices in Florida

What factors should be considered when selecting a lender for a mortgage?

A number of factors should guide your decision when choosing a lender. The foremost of these is the APR, whose value subsumes the interest rate, as well as annual fees. The APR can be fixed at the time of closure or reflect the market rate during the lifetime of the loan. The second option is typically cheaper at first, but at the same time riskier. There are also other fees to consider, paid during the mortgage closing. These inflate the closing costs, which can end up amounting to a good portion of the loan amount.

Different lenders also have different requirements for their clients. Your credit score, income, history of bankruptcy, and other characteristics will be considered. To ensure your reception of the loan, you should first complete pre-qualification, which is a condition for pre-approval.

If you don’t own a residence or are low on money, you should check if you are eligible for one of the special programs, more on which below. You may also qualify for down payment assistance in the form of a second mortgage.

Who is the top mortgage Lender in Florida?

Rocket Mortgage stands out as a dominant player in the mortgage industry, having achieved a volume of $22.4 billion. As the largest consumer lender in the United States, its leading position is well-deserved. Following behind Rocket Mortgage are other significant contenders, although at a greater distance, including UWM, Wells Fargo, Pennymac, and Chase. Collectively, these lenders contribute to over a quarter of all mortgages issued in Florida, highlighting their substantial market presence.

Florida first-time homebuyer programs

Government-backed mortgage programs can be particularly appealing for first-time homebuyers, although not exclusively. These programs offer various options, each with its own set of benefits and criteria.

The Federal Housing Administration (FHA) and the U.S. Department of Agriculture (USDA) offer insured loans with relaxed conditions. These programs allow for lower credit scores, with FHA accepting scores as low as 500, and down payments as low as 3.5% (or 10% for credit scores below 580). USDA loans are limited to rural areas and have income restrictions.

For former servicemen, the Department of Veteran Affairs provides loan options tailored to their needs and benefits.

Additionally, there are state-level programs like the Housing Finance Agency (HFA) program, which sets income and purchase price limits for first-time homebuyers. The specific thresholds vary by county, with the maximum property value typically set at $420,680, adjusted for higher-cost areas. HFA plans are offered exclusively through accredited partners.

While the aforementioned programs are generally 30-year fixed-rate mortgages, those seeking more flexibility may find the conventional or non-qualified mortgage offers more suitable.

It is important to understand that the definition of a first-time homebuyer can be somewhat counterintuitive. According to the relevant criteria, a first-time homebuyer refers to an individual who has not owned their primary residence in the past three years. This definition specifically excludes other types of properties from being considered in determining first-time homebuyer status.

How do I get pre-approved for a house in FL?

Obtaining a mortgage pre-approval is crucial for establishing credibility with home sellers. This pre-approval serves as a confirmation of the borrower's financial stability and is typically valid for a specific duration, often around 60 days.

During the pre-approval process, the lender assesses the borrower's ability to make mortgage payments by examining their credit score, employment history, income verification, and other relevant factors.

To obtain pre-approval, it is necessary to provide the lender with accurate and comprehensive information. This includes completing a standardized Uniform Residential Loan Application (URLA) form and submitting supporting documents such as recent payment stubs, bank account statements, W-2 forms, tax returns, or any other tangible evidence of income. It is possible to go through this process with multiple lenders to compare offers and choose the most suitable option.

What do I need to qualify for a mortgage in Florida?

When applying for a mortgage, there are several requirements to consider. One of the primary requirements is your credit score, which typically has a minimum threshold of 620, although some lenders may have higher requirements. Another important factor is the debt-to-income ratio, which generally should not exceed 43% but can be as high as 50% for conforming mortgages. Additionally, you will need to provide documentation to prove your income and ability to make the down payment.

The required documentation usually includes employment information, tax statements, pay stubs, credit reports, proof of identity, and other similar documents. It's important to note that specific conditions may vary depending on the lender you choose. To get more accurate and detailed information about the requirements, it is advisable to consult with your preferred lender.