Home Loans In Pembroke Pines

Pembroke Pines is a city in Broward County, Florida. It is a Miami suburb and the fourth-highest population in the Miami metropolitan area. Named “one of the best cities to live in America,” it’s home to over 170,000 people. Its 28 superior parks and lush landscaping in neighborhoods and public spaces contribute to the city’s natural attractiveness and South Florida charm.

Home Loan Programs in Pembroke Pines

There are several mortgage loans available for homebuyers in Pembroke Pines. The most common among them are as follows:

• Conventional Loans

A conventional loan in Pembroke Pines is a mortgage loan not insured by the government. Instead, this loan is backed by private lenders, such as banks, credit unions, and other financial institutions. Companies like Capital Home Mortgage offers such program services in Pembroke Pines.

The eligibility requirements for a conventional loan are as follows:

• A debt-to-income ratio under 43%. This ratio might need to be lower if you don’t have a strong credit profile.
• A minimum credit score of about 620. Some lenders require a credit score of at least 660, but if you want to make a lower down payment and get the best interest rates, it’s best to have a score of 740 or higher.
• A down payment of at least 3 – 5% of the purchase price, depending on the borrower’s credit score. However, if you want to avoid paying for mortgage insurance, a down payment of 20% is typically required. The requirement for adjustable-rate mortgages (ARMs) is higher—5%.
• Conventional loan home requirements are pretty lenient. In-depth home inspections are optional, but basic property standards must be met.

It’s important to note that conventional loans fall into two categories: conforming and non-conforming. Conforming loans adhere to lending standards set by Fannie Mae and Freddie Mac, meaning these entities will purchase the loan from the lender. Non-conforming loans do not meet these standards.

The conventional loan limits in Pembroke Pines for 2023 are $726,200 for a one-unit home,  $929,850 for a duplex, $1,123,900 for a tri-plex, and $1,396,800 for four living units.

• FHA Loan

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA). This type of loan is prevalent among first-time homebuyers in areas like Pembroke Pines, Florida, due to its more lenient requirements, including lower down payments and more accessible credit score thresholds.

Qualifying for an FHA loan in Pembroke Pines involves several key criteria:

• Credit Score: Applicants with a minimum FICO score of 580 can qualify with a down payment of 3.5%. A borrower’s credit score below 580 may still qualify, but a minimum down payment of 10% is required.
• Down Payment: FHA loans typically require a low down payment, often as low as 3.5% of the home’s purchase price. This makes it easier for first-time homebuyers or those with less savings to enter the housing market.
• Employment and Income: Borrowers must have a two-year verifiable employment history unless they can provide proof of recent military service or college grad.
• Loan Limits: For 2023, the limits for FHA loans in Pembroke Pines are $557,750 for a single-unit home, $714,000 for a two-unit property, $863,100 for a three-unit home, and $1,072,600 for a four-unit home, respectively. These limits may vary by year and are subject to change.
• Property Condition: FHA loans require that the house meet certain conditions, ensuring the property is safe, secure, and structurally sound.

• VA Loan

A VA home loan is a mortgage program available to American military veterans and eligible surviving spouses. This loan type, established as part of the GI Bill in 1944, provides long-term financing for home purchases and often presents more favorable terms than traditional mortgages.

Key benefits of VA loans in Pembroke Pines, Florida, include no down payment requirements, lower interest rates, and no need for mortgage insurance. The VA guarantees a portion of the loan, which replaces the veteran’s need for a down payment.

To qualify for a VA home loan in Pembroke Pines, Florida, an individual needs to meet the following requirements:

• Service Eligibility: The VA loan is intended for veterans and eligible surviving spouses. The specific service requirements vary, but you likely qualify if you’ve served on active duty for a certain period without dishonorable discharge. Active members of the military may also be eligible.
• Certificate of Eligibility (COE): Borrowers must obtain a COE to verify to lenders that they meet the service requirements for a VA loan.
• Credit and Income: While the VA does not set a minimum credit score, many lenders do have a minimum credit score requirement of 620 to be eligible for a VA loan. As for income, lenders typically require that your monthly housing cost is no more than a certain percentage of your income (debt-to-income ratio).
• Loan Limits: For 2023, the VA loan limit in Pembroke Pines is $726,200. However, as of 2020, VA loan limits have been eliminated for borrowers with full VA loan entitlement, meaning they can take out a loan of any size as long as they can afford the monthly payments.
• Property Requirements: The home must be your primary residence and meet specific property requirements. If purchasing a condominium, the property must be a VA-approved condo.
• Special Considerations: There might be specific requirements in different areas related to energy efficiency, insect inspections, and environmental hazards in other areas.

Please note that while the VA guarantees these loans, they do not issue them. You must apply for a VA loan through a VA-approved lender like Capital Home Mortgage.

• USDA Loan

A USDA home loan is a zero-down-payment mortgage designed for homebuyers in eligible towns and rural areas. The USDA Rural Development Guaranteed Housing Loan Program guarantees these loans. USDA loans are geared towards low to moderate-income homebuyers in Pembroke Pines, Florida. The U.S. Department of Agriculture guarantees these loans as a form of insurance.

To qualify for a USDA loan in Pembroke Pines, one must meet several requirements:

• Citizenship or Residency: You must be a U.S. citizen, U.S. non-citizen national, or qualified alien.
• Income: Your income must be at or below the set “low” income for the area you intend to live in.
• Primary Residence: The home you purchase must be intended as your primary residence.
• Property Eligibility: The property must be located in an eligible rural area as determined by the USDA. An area with a population of 35,000 or less can be considered “rural” by USDA standards.
• Mortgage Insurance: While USDA loans do not require a down payment, they do require mortgage insurance. This includes an upfront fee of 1% of the loan amount and an annual mortgage insurance fee of 0.35% of the loan balance. However, the upfront fee can be financed into the loan.

These requirements ensure that the benefits of the USDA loan program are targeted toward those who might otherwise struggle to secure housing financing.

As with VA loans, while the USDA guarantees them, they do not issue them. You must apply for a USDA loan through a USDA-approved lender like Capital Home Mortgage.

• Jumbo & Super Jumbo Loans

Jumbo and Super Jumbo loans are types of mortgages that exceed the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These loans are typically used to finance the purchase of luxury homes or high-priced investment properties. 

The specific definitions of Jumbo and Super Jumbo loans can vary. Still, Jumbo loans generally exceed the standard conforming loan limits, while Super Jumbo loans refer to even more significant loan amounts, sometimes up to $30 million or more.

Qualifying for a Jumbo or Super Jumbo loan typically involves stricter requirements compared to conventional loans due to the higher risk to lenders:

• Credit Score: An excellent credit history with a FICO over 700 is generally required.
• Debt-to-Income Ratio: A low debt-to-income ratio, ideally around 36%, but less than 43%, is often required.
• Down Payment: Jumbo loans usually require a higher down payment, often at least 20%.
• Income and Assets: Proof of income and assets is needed to cover the higher loan amounts. The specific requirements may vary depending on the lender and the loan size.
• Cash Reserves: Liquid assets, such as cash, that a borrower can easily access to help cover mortgage payments in the event of an unforeseen circumstance are referred to as “reserves.” A reserve of 6 – 12 months is typical for a jumbo loan. Some lenders may require 12 – 24 months, depending upon the borrower’s circumstances.

Jumbo and Super Jumbo loans in Pembroke Pines, Florida, can be used for buying expensive properties. The terms and conditions, such as interest rates and fees, can vary significantly between lenders. 

Apply for a Home Loan in Pembroke Pines

Capital Home Mortgage is a Pembroke Pines direct lender and home loan servicer. Capital Home Mortgage can assist you every step of the way if you are looking to buy a house in Pembroke Pines. We control your file entirely, from application to underwriting and funding.

Contact our Pembroke Pines Home Loan Specialists at (752) 529-0071 to begin your home-buying process.