Home Loans In Jacksonville

Jacksonville, the second-largest city by area in the contiguous United States as of 2020, is a city on the Atlantic coast of northeastern Florida. It is also the most populous city proper in the state. It serves as the county seat for Duval, which governs the town merged in 1968.

Jacksonville offers the ideal mix of affordable housing, high rental rates, and rapid property appreciation, which makes investing here so alluring. Redfin statistics indicate that Jacksonville is in the top 5 most popular real estate markets for investors.

Jacksonville Home Loan Programs 

There are several home loan programs available in Jacksonville. Some of the popular mortgage programs are as follows, along with their respective pros and cons:

• FHA Loans

The Federal Housing Administration insures these government-backed loans, intended to assist borrowers with lower credit scores and smaller down payments. The current FHA loan limit for a single-family home in Jacksonville, Florida, is $526,700.

The Pros of FHA loans in Jacksonville include the following:

• Low down payment requirement:

FHA loans allow borrowers to put down as little as 3.5% of the purchase price, substantially less than the typical 20% down payment required by conventional loans.

• Lenient borrowing requirements:

FHA loans have more lenient requirements for credit score, debt-to-income ratio, and down payment than conventional loans. Borrowers only need a credit score of 580, which allows a debt-to-income ratio of up to 50%.

• Low credit score requirement:

FHA loans require a minimal credit score of 580, which is lower than the conventional loan minimum of 620. Borrowers with credit scores between 500 – 579 may still qualify with a minimum 10% down payment.

• Enables homeownership for more people:

As a result of government-backed mortgage insurance and relaxed requirements, FHA loans make homeownership accessible to a broader range of borrowers.

The Cons of FHA loans in Jacksonville are:

• Lower loan limits:

The lower FHA loan limits compared to conventional loans may restrict the amount an applicant may afford. For 2023, the maximum FHA loan amount in Duvall County is $548,250. The cap on conventional loans, on the other hand, is $726,200.

• Mortgage insurance costs:

FHA loans need a 1.75% upfront mortgage insurance payment (UFMIP) and a monthly mortgage insurance premium (MIP) of 0.85% of the loan amount. This added expense may make FHA loans more expensive in the long run.

• Property restrictions:

FHA loans have strict property requirements; some properties may only qualify if these conditions are met. The minimal property standards in Jacksonville for an FHA loan are intended to guarantee that the property is safe, secure, and structurally sound.

• VA Loans

The Department of Veterans Affairs backs these loans, accessible to eligible veterans, active-duty service members, and some surviving spouses. The advantages of VA loans include no down payment, no private mortgage insurance (PMI), and reasonable interest rates. The disadvantages include an upfront funding fee cost and more stringent property restrictions.

• USDA Loans

USDA loans are available to non-farm homeowners in rural areas and for rural housing developments. The United States Department of Agriculture (USDA) guarantees loans to qualifying buyers up to 100% financing. It permits all closing fees to be paid for by the seller or financed into the loan.

To qualify for a USDA loan, applicants must purchase a property in a USDA-defined rural area. USDA-eligible properties in Jacksonville have an average price of $514,840 and a covered area of 2,293 square feet. The USDA’s Income and Property Eligibility Site can be used to determine property eligibility.

The pros of a USDA home loan in Jacksonville include no down payment requirement, low-interest rates, and the ability to finance repairs and closing costs. However, the cons are geographic restrictions, income limitations, and the loan is limited to only primary residences.

• Conventional Loans

Conventional mortgage loans are not insured or guaranteed by the government. Private lenders instead back them. Conventional loans are typically the best option for borrowers with outstanding credit, stable income, and a 20 percent down payment.

A conventional mortgage in Jacksonville requires a minimum down payment of three to five percent. Conventional mortgages are the most prevalent option for financing a home than government-insured loans. They can be used to purchase both primary residences and investment properties, and their terms can range from one to forty years, with a fixed or variable interest rate.

Conforming and non-conforming loans are the two categories of conventional loans. The Federal Housing Finance Agency (FHFA) establishes loan limits for conforming conventional loans. The current loan limit for most U.S. counties is $726,200; in high-cost areas, it is $1,089,300 and, in some cases, even higher.

• Jumbo Loans

These loans are for borrowers who need to borrow more than Fannie Mae and Freddie Mac’s conforming loan limits. The capacity to finance pricey properties and competitive interest rates for suitable borrowers are two advantages of jumbo loans. The disadvantages are larger down payment requirements and stricter credit score and debt-to-income ratio requirements.

Apply for a Home Loan in Jacksonville

Capital Home Mortgage is a direct mortgage lender and servicer that offers a vast array of Florida mortgage products to satisfy all of its clients’ mortgage-related needs. Whether you have lived in Jacksonville your entire life or are new to the area, our highly skilled Capital Home Mortgage Team will work to find the loan program that best fits your budget and individual needs. We can assist you in purchasing your first home, refinancing your current mortgage, or consolidating your debt. 

Contact us at (239) 310-5599 to begin the homeownership process.