Florida Home Purchase

Florida Home Purchase With Bad Credit And No Overlays

Gustan Cho Associates are mortgage brokers licensed in 48 states

This Article On Florida Home Purchase With Bad Credit And No Overlays

Florida’s housing market is booming throughout the whole state.

  • Housing prices have escalated double digits throughout the state of Florida since 2012 with no signs of correction
  • Many home buyers with bad credit have re-established themselves and can now afford to purchase a home in Florida
  • However, many are restricted due to lower credit scores and prior great credit
  • Homebuyers do not realize that they can qualify for Florida Home Purchase with bad credit with a direct lender with no overlays

In this article, we will discuss and cover Florida Home Purchase With Bad Credit And No Overlays.

Agency Guidelines Versus Lender Overlays
Agency Guidelines Versus Lender Overlays

Most lenders have overlays on government and conventional loans:

  • Lender Overlays are mortgage guidelines that are above and beyond minimum agency guidelines
  • For example, FHA requires a 580 credit score for homebuyers to qualify for 3.5% Florida Home Purchase
  • However, many lenders will require a 620 to 640 credit score
  • The higher credit score required by lenders is called overlays
  • Just because borrowers do not qualify with one lender does not mean that they do not qualify with another lender

Gustan Cho Mortgage Group has no lender overlays on government and conventional loans.


Why Florida Housing Market Is So Hot

Florida is the state of choice for many retirees.

  • Many folks who plan on retiring and relocating to a warmer climate state still prefer Florida than states like California, Arizona
  • Florida housing prices have appreciated double digits since 2012
  • This due to reasonable housing prices as well as no state income taxes

The Sunshine State of Florida is warm throughout the 12 months.

  • There are many tourist destinations like Disney World as well as fine beaches throughout the whole state
  • Like many other U.S. cities, traffic is a major problem especially in tourist areas

Florida Home Purchase Contracts

Florida Home Purchase Contracts are similar to those of other states.

  • Both home buyers and home sellers need to be on the same page
  • The agreed-upon sales price needs to be on the contract as well as all the contingencies to the Florida Home Purchase contract

Here are typical contingencies on purchase contracts:

  • loan commitment contingency
  • home inspection contingency
  • home appraisal contingency
  • other contingencies

Sellers concessions by sellers need to be listed on the Florida Home Purchase:

  • Closing date, property description, and items that will be left by the home seller and included needs to be included in the Florida Home Purchase Contract

Florida Property Disclosure Requirements

Chapter 475 of the Florida Statutes mandates that the home seller needs to furnish a home disclosure form that details any home repairs that have been done to the home.

  • It needs to disclose any problems or defects on the property that the home seller knows about or is aware of
  • Any disputes or legal issues the home is involved in needs to be disclosed

Sinkhole Issues With Florida Home Purchase

One of the major issues with properties in the state of Florida is potential sinkhole issues.

  • Sinkholes are very common in the state of Florida
  • Due to the geological structure of the state of Florida, the state of Florida has the highest sinkhole problems than any other state in the United States
  • Home sellers in the state of Florida are required to disclose whether they know if the subject property or surrounding areas close to the property has had sinkhole issues or a sinkhole problem
  • Just because the home seller of the Florida property does not list that there have been any issues with sinkholes, it is wise to do own due diligence

Due diligence can be done via the internet, news article archives, county records, or other research to make sure that the area is not prone to sinkholes.

Florida Geographical Status

Florida is the southernmost state. The state is mainly a peninsula.

  • The height of most of the state of Florida is 12 feet above the water
  • There are no basements in homes in Florida and Florida homes are subjected to flooding
  • Many parts of Florida are in flood zones as classified by the Federal Emergency Management Agency ( FEMA )

Flood insurance is mandatory in flood zones and annual flood insurance can be quite costly and is figured into debt to income ratio calculations.

Home Inspection On Florida Home Purchase
Home Inspection On Florida Home Purchase

Due to the humidity, warm weather, hot temperature, salt in the air, and other weather conditions, Florida homes have a tendency to require more maintenance than homes located in other parts of the United States.

  • A home inspection is highly recommended on a Florida Home Purchase
  • Special emphasis should be taken into account with regards to termite, parasite infestation, mold issues, and structural timber dry rotting

The foundation of the home should be inspected for cracks and for damage from moisture.

Finding Direct Lenders With No Overlays

Most lenders have overlays on government and conventional loans. Gustan Cho Associates Mortgage Group has a national reputation of not having any overlays on FHA, VA, USDA, and Conventional Loans. Over 75% of our borrowers are folks who either could not qualify at other mortgage companies due to their overlays or last-minute loan denial. We also offer non-QM loans where there is no waiting period after the housing event and/or foreclosure. Our new bank statement mortgage loan program for self-employed borrowers does not require income tax returns. We just go by the monthly average of the borrower’s past 24 months’ personal or business bank deposits. 10% to 20% down payment is required. The amount of down payment and mortgage rates depend on borrowers’ credit scores. There are no loan limit caps and there is no private mortgage insurance required. To start the qualification and pre-approval process, contact us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com.


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