If you’re looking to buy Florida homes, you’re going to want to make sure that you take some time to consider all of the different factors involved. For instance, will you need to use a mortgage loan? How much will your down payment be? What about the foreclosure crisis? You’re also going to want to make sure that you consider the state of the housing market in Florida.
Home prices in Florida have increased by more than 156% since April 2002
The Florida real estate market is one of the hottest in the country. It has seen unprecedented price rises in the previous year. This is attributed to the thriving job market and population growth. However, it may be facing some challenges.
Miami and Tampa have experienced dramatic increases in home prices. Both markets are among the top 10 in the nation. In fact, the median sale price in Miami is now $530,000, up 24.5% from $425,600 in September of last year.
Another major trend is the decrease in the number of homes for sale (https://www.forbes.com/florida/). From 4,903 homes for sale in September 2021 to 4,378 homes for sale in September 2022, the available inventory has declined by 10.7%.
South Florida’s housing inventory is very low
The housing inventory in South Florida is very low. This shortage is a major issue, and it is not expected to go away anytime soon. However, there are many benefits of living in South Florida.
One of the most appealing is the flexibility of working from home. It has always been popular for people to move to this area. People who live in other areas of the country are looking to buy a home here.
As more homes are added to the market, the overall inventory should grow. But, with interest rates rising, this will not happen quickly. In order to make the most of the situation, it is a good idea to be prepared.
Buying a home with a higher down payment
There are many programs available in the Sunshine State to help first-time homebuyers. This includes down payment assistance, a few of which are a little different from the traditional. A down payment may be the first thing that crosses your mind when you’re looking for a home.
A smaller down payment could mean you have to get a less expensive home or pay for a bigger mortgage. The amount of money you spend on your down payment will make a big impact on your future mortgage payments and your overall home affordability. Always keep affordability in mind when trying to decide if you can spend money on something.
The best way to find out what you can afford and what types of mortgages are available is to speak to a housing counselor. A company like Florida Homeowner Solutions may be able to help. They will be able to guide you through the process and provide you with a list of participating lenders.
You can even get your feet wet with a government loan program. If you are a first-time homebuyer, you might qualify for a USDA loan, which is a government-backed loan for homes in rural areas. Also, if you have stellar credit, you might be able to score a VA loan, which is a military-backed loan for qualified veterans and their surviving spouses.
Buying a home in foreclosure
To get started, you need to find a bank that will finance your purchase. If you’re unable to find a lender, you might need to file for bankruptcy. The bankruptcy can extend the foreclosure process by several months.
Once you find a lender, you will need to send them a deposit. Escrow money is a healthy sum of cash that shows the bank that you’re serious about the deal. Before you can make an offer on a foreclosed home, you need to prove that you have the funds to make your purchase. You can prove this by submitting a letter from your mortgage lender.
Or you can send in a cashier’s check or bank statement. If you’re not comfortable making an offer, you can work with a real estate attorney to get the deal closed quickly. A foreclosure sale can be a long and complicated process, but it can also be a great investment for a real estate investor.