Affordable South Florida Home Loans: They DO Exist!
It’s a common concern throughout the Sunshine State: as prices rise, more and more potential buyers feel squeezed out of reasonable Florida home loans. They fear that they’ll never be able to find property on their current salary or budget.
But is this a valid worry? While areas of South Florida, such a Palm Beach, are concerned about affordable housing solutions, the reality seeems to be that there’s no shortage of residences listed for less than $200,000.
Recently, the Multiple Listing Service, the database real estate agents use to list properties, showed 10,311 homes, villas, mobile homes and condos ranging in price from $50,000 to $200,000 for sale in South Florida.
I was shocked,” said Stephanie Lighter, a broker with Royal Poinciana Realty in Boca Raton, about the number of units in this price range.
The reality of South Florida home mortgage loans
Like many real estate agents and house hunters, Lighter was convinced that finding a unit in South Florida for less than $200,000 wasn’t possible. This may explain why consumer interest and Florida home mortgage loan demand has fallen - nut if price is your key criteria, you aren’t picky and don’t mind doing some work on the place, this goal doesn’t need to be so far-fetched.
The challenge is picking out a decent property in a safe neighborhood that you can get a Florida home loan on within reason. While that so-called handyman special might be cheap, if it has a leaky roof and rotten floors, it will be tough to find a mortgage on it.
“The rule would be if you are going through a conventional lender who is going sell the mortgage through the secondary market, then the home would need to be in a decent state as opposed to in disrepair,” said Bruce Keir, CEO of Community Bank of Broward.
Homes in poor condition are generally regarded as investment properties and can require as much as 25 percent for a down payment - along with a plan to pay for the repairs needed to make the home livable and saleable. It can add up.
Finding that affordable Florida home loan, residence
These days, many real estate agents scoff at consumers looking for a residence for less than $200,000, even if buyers say they will take old flooring, appliances, cabinets and scruffy landscaping.
“If I had any available at that price, I wouldn’t be a real estate broker - I would be a magician,” said Dan Hecker, a Palm Beach County real estate agent.
But they are out there, even if they are seriously lacking curb appeal. There are properties ranging from a small home in a neat Boynton Beach neighborhood in need of an interior overhaul for less than $200,000 to a one-bedroom condo in a pleasant Deerfield Beach area for less than $100,000.
Of course, it may take imagination and turning a blind eye to the stains and tears because the price is right. You can’t be overly choosy.
“There is opportunity for sweat equity,” said Michael Pappas, president of The Keyes Co., one of the region’s top real estate brokerages. ” That is real estate. You have to be willing to do your homework to find your diamond. Of course, these might be opals, not diamonds.”
The news for potential buyers in this market is growing brighter by the day. South Florida home loans appear to be coming down as the areas cools and heads for a soft landing.
