Difficulties Obtaining a Florida Mortgage

Obtaining a Florida mortgage has become exceedingly difficult over the past year. There are many factors affecting a Florida borrower's ability to either refinance or obtain a mortgage to purchase a home. This unique situation in Florida is comprised of both universal problems affecting the entire United States and specific state issues affecting the area.

A few years ago, borrowers could more easily obtain a mortgage with a low credit score. Within the last couple years, most lenders have raised their qualifying credit score for borrowers to 640. This means small issues like a late credit card payment could potentially eliminate the possibility of a lender approving a borrower. Also most lenders have eliminated no income verification loans and stated income verification loans. Borrowers now need to be able to document their income to help qualify for a home loan. This documentation means borrowers that receive commissions or do not declare taxable income will find it more difficult to qualify with a lender.

Besides universal issues creating difficulties obtaining a mortgage, there are specific state issues affecting borrowers abilities to receive a mortgage in Florida. Florida home prices have been depressed over the past 3 years. According to the Federal Housing Finance Industry, Florida's Home Price Index has been one of the lowest performing states. Florida's depressed market has had multiple effects on people's ability to qualify for a mortgage or refinance on a specific home. If a person's home doesn't appraise for a high enough they will be unable to refinance. If they are purchasing and their home doesn't appraise than the borrower will either need to bring more money to the table to make up the difference, renegotiate the purchase price, or walk away from the deal.

Borrowers in Florida are also having difficulties due to the State's economy. According to Bureau of Labor Statistics, the Sunshine State has the 4th highest unemployment rate. As of October 2010, Florida's unemployment rate is 11.9%. Most lenders will not lend to a borrower that is unemployed. Also, borrowers that were recently hired may not qualify since lenders typically require 2 years of consecutive employment history.

Although obtaining a Florida Home Loan may be difficult but it's not impossible. Finding a good mortgage professional familiar with the lenders servicing Florida can increase your chances of qualifying for a loan. Mortgage experts can also better present your package and/or help find a lender that is more suitable for a borrower's specific situation. People interested in refinancing or obtaining a Florida mortgage should speak with a professional to get a better understanding of their options and ability to qualify.

Article Source: http://EzineArticles.com/?expert=Sarasota_Ross

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