Home Loans In Miramar

Miramar is a city in Broward County, Florida. It is a major city in the Miami metropolitan area, with a population of around six million. Miramar is conveniently positioned between Broward and Miami-Dade Counties in the heart of South Florida. It extends from the Everglades to State Road 7 in the east. Miami-Dade County borders on the south.

The Miramar housing market is somewhat competitive. Homes sell in about 49 days, with an average median price of $480,000, up 3.3% from last year.

Home Loan Programs in Miramar

In Miramar, Florida, various mortgage loans are available to accommodate different borrowers. Here are some options:

• Conventional Loans

A conventional mortgage is a loan not insured by any government agency such as the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA). This type of loan often satisfies the guidelines established by the Federal Housing Finance Agency, which conforms to the down payment and income limits set by Fannie Mae and Freddie Mac.

The qualification requirements for a conventional mortgage in Miramar, Florida, include:

• Down Payment

A conventional mortgage generally requires a down payment of 3% or more. If you want to avoid paying for private mortgage insurance (PMI), a 20% down payment would be necessary. However, some options in Florida require less than 20%, such as the Conventional 95 loan type, which requires 5% down with PMI.

• Credit Score

A minimum credit score of 620 is required on all conventional loans. However, some lenders may require a higher score of 640 and up to qualify for conventional financing.

• Debt-to-Income Ratio

Most conventional loans require a DTI of 45% or less. However, some lenders may allow a higher DTI ratio, with compensating factors and other qualifying conditions.

• Loan Amount

For a conforming conventional loan, your loan must fall within the loan limits Fannie Mae and Freddie Mac set. The limit changes annually. For 2023, the conforming loan limit for a single-family home is $726,200, $929,850 for a two-unit property, $1,123,900 for a three-unit residence, and $1,396,800 for a four-unit property.

• FHA Loans

FHA loans are mortgages backed by the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD). They are popular, especially among first-time homebuyers, because they require a minimum down payment of 3.5% and a credit score of 580 or above. A key feature of this type of loan is that borrowers must pay mortgage insurance premiums, which protect the lender against defaults.

To be eligible for an FHA loan in Miramar, Florida, the following requirements typically apply:

• Credit Score & Down Payment

Borrowers with credit scores of 580 or above are eligible for a 3.5% down payment under the FHA loan program. On the other hand, those with credit scores ranging from 500 to 579 are eligible for a 10% down payment, but certain restrictions may apply.

• Employment History

Borrowers must present proof of consistent employment over the past two years to be eligible for FHA loans. Borrowers with evidence of recent military service and recent college graduates are exempt from this requirement.

• Debt-to-Income Ratio

An FHA loan’s standard debt-to-income (DTI) ratio requirement is 45%. However, some borrowers may qualify for a 50 – 55% DTI ratio with compensating factors.

• Loan Amount

To qualify for an FHA loan in Miramar, Florida, your home loan must be below your area’s local FHA loan limits. For 2023, the maximum loan limit in Miramar, Broward County is $557,750 for a single-family home, $714,000 for a duplex, $853,100 for a triplex, and $1,073,600 for a four-plex.

Remember that you will need to work with an FHA-approved lender to finance an FHA loan in Florida.

• VA Loans

A VA home loan is a mortgage option available to U.S. veterans, active-duty service members, and widowed service members’ spouses. This loan is provided by private lenders and is guaranteed by the United States Department of Veterans Affairs. VA loans were introduced in 1944 as part of the GI Bill to aid veterans and have increased in popularity since then.

The eligibility requirements for a VA home loan include:

• Service Eligibility

The borrower must have served in the United States military. Specific service criteria may differ, but you’ll need a Certificate of Eligibility (COE) to show the lender that you qualify based on your service history and duty status.

• Credit and Income

While the VA does not establish a minimum credit score for VA loans, many lenders do. Most lenders require a credit score of 620 to qualify for a VA mortgage. In addition, lenders will verify your ability to repay the loan by using the residual income method to evaluate your income.

• Primary Residence

The home purchased with a VA loan must be used as your primary residence. No second homes or investment properties are allowed.

• Loan Limits

VA borrowers in Florida who have received their full VA loan entitlement are not subject to VA loan limitations. This implies you can borrow up to the amount a lender is willing to lend without making a down payment.

Veterans without full VA loan entitlement are subject to Florida’s VA loan limits. The VA loan limit for all counties in Florida is $726,200 as of January 1, 2023.

• Jumbo Loans

A jumbo loan is a mortgage that exceeds the conforming loan restrictions set by Fannie Mae and Freddie Mac, the government-sponsored enterprises that buy loans from lenders and banks. These limitations are set county by county and can vary depending on the area.

In 2023, the maximum conforming loan amount for Miramar, Broward County, is $726,200. If a loan exceeds this amount, it is typically considered a jumbo loan.

Due to the more significant loan amount, the eligibility requirements for jumbo loans are typically stricter than those for conforming loans. These more stringent requirements may include restrictions on income and finances. Additionally, typically a larger down payment is required. The minimum down payment for a jumbo loan can reach 20%. 

Moreover, most higher loan-to-value (LTV) jumbo loans, such as those offering 90% LTV, require a credit score of 700 or higher for consideration. Some lenders require a credit score of 740 and above to qualify.

Contacting a mortgage professional for specific requirements and guidelines for jumbo loans in your area, such as Miramar, Florida, in Broward County, is always recommended.

• Non-QM Loans

Non-Qualified Mortgages (Non-QM) are home loans that don’t meet the Consumer Financial Protection Bureau’s (CFPB) minimum documentation requirements. They are intended to assist home buyers who need help to fulfill the strict criteria of a qualifying mortgage, such as if they are self-employed or do not have all of the typical forms of documentation required in a standard mortgage process.

Non-QM loans can encompass a wide variety of mortgages, including home loans exceeding 30-year terms, home loans with negative amortization, and loans that employ non-standard mortgage terms to help borrowers qualify. These include loan terms over 30 years, interest-only loans, higher debt ratios, or alternate income verification methods.

One of the major benefits of non-QM loans is that they offer opportunities to borrowers with low credit scores, even below 500. Non-QM lenders also have flexible documentation requirements. For example, in the case of bank statement mortgages for self-employed borrowers and/or business owners, Non-QM lenders will average the past 12 months of bank statement deposits, and federal income tax returns are not required.

However, non-QM loans tend to have higher interest rates and fees to compensate for the higher risk level of these unregulated loans.

Apply for a Home Loan in Miramar

Buying a home is a major undertaking, and Capital Home Mortgage can help make the process as straightforward and enjoyable as possible. We are a full-service mortgage company that offers a wide selection of mortgage choices and the best customer service in the market.

Call us at (754) 529-0071 to speak with one of our Miramar Home Loan Experts and start becoming a homeowner!