Home Loans In Fort Lauderdale

Fort Lauderdale is a coastal city in the U.S. state of Florida, 30 miles (48 km) north of Miami along the Atlantic Ocean. It is the county seat of and largest city in Broward County, the tenth largest city in Florida.  Fort Lauderdale is the second principal city in the Miami metropolitan area.

Fort Lauderdale remains one of South Florida’s most dynamic and desirable cities. Developers have recently invested significantly in the city, elevating the luxury condominium market to unprecedented heights. The waterways also witnessed an increase in construction activity. This beautification of Fort Lauderdale and improvement in the quality of luxury housing options will continue to attract corporate entities and migration from northern states.

Home Loan Programs in Fort Lauderdale

There are various types of mortgages available to homebuyers in Fort Lauderdale. Some of them include the following:

• Conventional Loans

Conventional loans are mortgages not insured or guaranteed by the federal government, unlike FHA loans or VA loans. They can either be conforming or non-conforming, with conforming loans meeting the guidelines set by Fannie Mae and Freddie Mac, two government-sponsored enterprises that purchase mortgages from lenders and sell them to investors.

The qualification requirements of a conventional loan include a minimum down payment of 3 – 5% of the purchase price. A maximum debt-to-income ratio of 45% and stable employment are required to qualify for a conventional loan.

Conventional conforming loans have a loan limit set by the Federal Housing Finance Agency (FHFA), which is the maximum amount that can be borrowed. For 2023, the conforming loan limits for Broward County, Florida, are $726,200 for a one-unit property, $929,850 for a duplex, $1,123,900 for a tri-plex, and $1,396,800 for a four-plex, respectively.

• FHA Loans

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). These loans are provided by private lenders but backed by the federal government, allowing these lenders to offer more favorable loan terms to low- and moderate-income homebuyers.

The FHA loan is designed for borrowers who may not be able to qualify for conventional loans due to factors such as a lower credit score or lack of a sizeable down payment. Borrowers with credit scores as low as 500 can qualify for an FHA loan. If your credit score is 580 or higher, you could qualify for the low down payment advantage, which currently stands at 3.5%. If your credit score is below 580, the down payment requirement increases to 10%.

The FHA loan limit for Broward County in 2023 is $557,750 for a single-family residence, $714,000 for a duplex, $863,100 for a tri-plex, and $1,072,600 for a four-plex, respectively.

• VA Loans

VA home loans are mortgages backed by the U.S. Department of Veterans Affairs. They are accessible to eligible veterans, service members, and surviving spouses. Private lenders, such as banks and mortgage companies, provide these loans, but the VA guarantees a portion of the loan, enabling the lender to offer more favorable terms.

To qualify for a VA home loan, you must meet service and discharge requirements and request a Certificate of Eligibility (COE) to demonstrate to your lender that you are eligible based on your service history and current duty status. You must also satisfy the lender’s credit and income loan requirements to obtain financing.

VA home loans have various advantages over conventional mortgages. One of the significant benefits of VA loans in Fort Lauderdale is that they do not require a down payment, making them one of the few 0% down home loans available today. These loans are also frequently more affordable than traditional loans from private banks, mortgage companies, or credit unions.

• USDA Loans

USDA home loans are offered in Broward County, Florida. The USDA home loan provides substantial benefits to consumers looking to purchase a single-family primary dwelling in an approved suburban or rural development area.

To qualify for a USDA Loan, you must satisfy several requirements. You must be a U.S. citizen, the property must be your primary residence, and your household income cannot exceed 115% of Broward County’s median income. In addition, your credit score must be at least 620, and your debt-to-income ratio (DTI) must be below 41%.

The current income limits for USDA loans in Broward County are $90,300 for households with 1 to 4 members and $119,200 for families with 5 to 8 members. These income limits are subject to change at any time by the USDA.

Property must be located in a USDA-eligible area to qualify for a USDA loan. This includes foreclosure, short-sale, sale/purchase, and homeownership zones. 

• Jumbo Loans

A jumbo mortgage is a home loan for an amount that exceeds the limits set by government-sponsored agencies like Fannie Mae and Freddie Mac. In Fort Lauderdale, jumbo loans refer to those that surpass the conventional loan limit of $726,200 for single-family homes and condos.

Due to the higher risk associated with lending a substantial amount of money, jumbo loan qualification requirements are typically more stringent than those for conventional loans. The borrower must demonstrate sound financial health.

In particular, jumbo loans usually necessitate a larger down payment, typically around 20%. In addition to providing income proof, borrowers may be subject to stringent credit score requirements. A high credit score indicates to lenders that a consumer is trustworthy and less likely to default.

Another critical factor that lenders consider is the borrower’s debt-to-income (DTI) ratio, which compares the borrower’s income to their debt obligations. A lower DTI ratio indicates that the borrower has a good balance between income and debt, making them a less risky candidate for a loan.

Apply for a Home Loan in Fort Lauderdale

Capital Home Mortgage in Fort Lauderdale specializes in various home loan programs for every borrower. If you are looking for a mortgage to make Fort Lauderdale your home, Capital Home Mortgage can help. We are a direct lender and servicer of mortgages in Fort Lauderdale who has control of your file from application to closing and funding.

Call our Fort Lauderdale Home Loan Experts at (754) 529-0071 and get started on your path to homeownership!