Daytona Beach Mortgage News

Mortgage rates are very low right now, but it can be very difficult to qualify for a conventional mortgage. A stellar credit score and 20% down payment is needed for many conventional loans. Government guaranteed mortgages, such as a VA, FHA or USDA mortgage are a better option for many people.

The major advantages of the government guaranteed loans are low to no down payment and a lower credit score won’t automatically disqualify a borrower.

USDA loans can be made with no down payment and a credit score as low as 620. Not only that, but the loan can be for 103.5% of the appraised value. Up until now, there’s been no mortgage insurance, but that’s going to change as of October 1st. There is a funding fee with government loans and the new USDA funding fee will be 2.0%. The funding fee is down from 3.5% to help cover the new annual 0.3% mortgage insurance premium (MIP).

Another change to USDA loans will be changes to the eligibility maps. Since the last changes, suburban areas have creeped into the program and it’s expected that many of these areas will loose their eligibility. However, that doesn’t mean that a lot of towns around larger cities won’t be eligible. Towns of about 25,000 have been eligible in the past. We suspect that will remain with the new changes.

It’s a good idea to check out your eligibility for government guaranteed loans. They can keep money in your pocket by reducing your down payment and rolling closing costs into the loan. We suspect that much of Flagler county and Palm Coast homes will be eligible with the new changes.

It’s probably a really good time to consider buying a home if you’re going to finance. These loan rates will not hold. We suspect that when loans are freely available, the rates will explode. It’s interesting to note that rates are incredibly low, but few people qualify. One about 20% of Daytona Beach homes purchases are purchased using conventional mortgages. Case buyers account for about 55% and government loans and other forms of financing account for the rest.

Palm Coast Homes Buyers – Low Price is Not Always Best

Palm Coast Homes Buyers Must Know Value and Price

There are tremendous values available in Palm Coast homes and condos. Many of these properties are priced very low making it a tremendous temptation to buy on price alone. That may be a mistake. The reason is simple, but can get lost in the urge to get a bargain – not all homes rise in value at the same rate.

Serious real estate investors seek properties that they believe have the best opportunity for appreciation. How do they do this? Well, one simple rule is the most desirable neighborhoods. In these neighborhoods, prices are likely to rise because a lot of people want to live there. The reason might be the schools, the location and the amenities.

Buyers of homes in Palm Coast, Daytona Beach, Ormond Beach or Port Orange may eventually want to sell the properties they buy now and choosing the right property could make it easier and more profitable to do so.

Now, it may seem strange that I’m talking about rising prices in a market that’s recently experienced radical price drops. I don’t think it’s strange at all that when buying, even at very low prices, that you consider selling at some point in the future. We are in the low end of the real estate cycle. We will eventually begin to climb out and prices will rise. When and by how much, I don’t know, but it’s getting closer every day.

I’m not discounty the importance of low-prices homes and condos, but I’m urging you to consider it part of the buying process. Florida real estate may not see the price boom like we saw a few years ago, but we will see appreciation. So when considering Palm Coast real estate, or any other area, make location one of the factors in your decision.

Flagler County was the fastest growing county in Florida a few years ago and should be at the lead in growth when it picks back up. Here’s a few things to remember about location, that may help:

  • Newer homes and newer communities with current architecture are usually more valuable than older, dated homes
  • Waterfront – ocean, lake, river adds value and desirability to many homes. Palm Coast and Flagler have oceanfront, lake front, and river front properties. In addition, there are many homes on canals that lead to the river and eventually out to the ocean.
  • Close to schools

As your Palm Coast Realtor, I can give you more information on these critical factors. Call me at 386-566-7503. There’s no obligation and never a hassle.

  • Gated Communities with superior amenities are attractive to many people