Whether you have purchased 20 homes in the past or you plan to buy your first home there have been changes in mortgage loan options that have gone into effect in 2018.

One of the biggest changes in 2018 is the increase in the loan limit for a Conventional Loan. The loan amount has increased from $424,000 to $453,100 for a single family home purchase. This increase couldn’t have come at a better time as home values in Broward continue to rise. 

Conventional Loans have a first time home buyers program which allows first time buyers to put only 3% down. The minimum down payment for current home owners is 5% down for an conventional loan. Qualifications for a Conventional Loan depend largely on your debt to income ratio and credit standing. 

If a Conventional Loan option doesn’t work for you based on your credit score and debt to income ratio, an FHA loan is a great option. The maximum loan amount for an FHA Loan in Broward County is $345,000. An FHA Loan is very popular with first time home buyers due to the low down payment requirement of 3.5%. You don’t need to be a first time home buyer to take advantage of an FHA Loan. 

Another great option for those who have or are serving in our US Armed Forces is the VA Loan option. VA Loans are issued by qualified lenders and guaranteed by the U.S. Department of Veterans Affairs. Check with the U.S. Department of Veterans Affairs to determine your eligibility. VA Loans have a 0% down payment option and borrowing limits. The maximum loan amount of a VA Loan is $453,100 when putting 0% down. 

If you need a larger VA Loan amount there is a Jumbo VA Loan option if you are purchasing a home over the $453,100 loan amount. In a Jumbo VA Loan you are required to put a down payment of 25% of the difference between the purchase price of the home and the $453,100 maximum loan amount. 

There are many options when it comes to home mortgages and its best to speak to a trusted loan officer to go over the best options based on your income and credit rating so you can make an informed decision. 

David Sheir, Area Manager for Cornerstone Home Lending offers this piece of advise for home buyers, “When saving for a new home be sure you can document and verify the sources of all your deposits for the 2 months leading up to the signing of a purchase contract. Many people are not aware that ‘mattress money’ that cannot be sourced cannot be used on a mortgage transaction.” 

One of the most important factors to remember when planning to buy a new home is to  save not only for the down payment but for the closing cost as well. Closing cost vary depending on the type of loan and the amount of the purchase price but typically range from 3-4% of the price of the home. 

Buying a home is a very important decision and that’s why you should only work with an experienced team like the Amy Kilcoyne Real Estate Team. Our team has helped hundreds home people buy and sell homes and we can guide you through the entire process. Contact us Amy@welcomehomesofl.com 

You can start your home buying process by searching for homes for sale on www.welcomehomesofl.com