Reason #1: Lack of Stable Job History

The first thing lenders look when deciding whether to grant you a Florida home loan is evidence that you’ve had and will most likely maintain a stable job history. For sure, you’ll need to account for the last 2 years of work history. You’ll also need to furnish your most recent 2 years W2 statements as well as a recent pay stub in order for most lenders to issue you a pre-approval letter.

Reason #2: Insufficient Income

Even if you can show a steady work history, you must be able to also show that you can afford the Florida home loan you’re seeking. As a rule, you’ll want to be sure that you have a minimum of 2 and 1/2 times your monthly debt payments coming in as monthly income.

Reason #3: Poor Credit History

Most Florida home loan mortgage lenders today require a 620 minimum credit (FICO) score, and you’ll need a 700 score or higher to get some of the more attractive rates being advertised. As a rule, you can expect your interest rate to be better the higher your credit score rates. Low but acceptable credit scores in the high 600s will get you lower than optimal mortgage interest rates.

Bottom line: If you can’t get a Florida home loan approval, it is likely due to insufficient income, too much debt, or your inability to document your income or assets. The only thing you can do if you fall into any of these categories is wait it out. In time, if you work on each of these areas, a mortgage approval will be in the cards for you.

Top 3 Reasons Why You Can’t Qualify for a Florida Home Loan is from Florida Home Loan Report

Home sales and the housing market took a double hit over the past couple of years.

First, we’ve seen mortgage markets tighten over the past couple of years, with more and more restrictions preventing some homeowners from getting out of bad ARM loans.  This led to a  increase in foreclosures, which in turn led to large losses on Wall Street.  The net result – the US economy took a huge hit.

Looking back over the past 3 years – we can see that foreclosures are up, home values are down, and Florida home loan rates are as low as they’ve ever been.  This is great news for mortgage borrowers looking to buy Florida homes today, as there is an ample supply of homes, and Florida home loan financing is inexpensive.  However, home loans in Florida may be getting more difficult to obtain, and the housing market may be shifting away from a buyer’s market.

We can already see these changes taking place:

• The home supply is down 40 percent this year
• Existing home sales in Florida and other areas are on the rise
• Pending Florida home sales are as high as they’ve been since 2006

Furthermore, home prices are on the rise in Florida and other U.S. markets.

Bottom line, the buyer’s market is coming to an end.  If you bought a home in February 2009, congrats.

For today’s home buyers, rates on Florida home loans are still low, and Florida home prices will continue to move upward.  Home-buying in Florida may not be the great deal it was 9 months ago, but there are still deals on homes and Florida home loans to be had.  If yous see a rate you like now, lock it in – as we will likely see Florida home loan rates pass the 6 percent mark before too long.

Has the Florida Housing Market Hit Bottom? is from Florida Home Loan Report