The housing market finally is showing signs of cooling, even in still-hot Florida.

The median price for both single-family homes and condos and townhouses in the state was unchanged from June 2022 to June 2023, according to the Florida Realtors.

The state’s combination of warm weather, a strong economy, and attractive taxes mean Florida has drawn buyers from around the country and around the world. Florida’s job market remains stellar – its 3.7% growth rate from May 2022 to May 2023 trailed only Texas, according to the U.S. Labor Department. But as mortgage rates have risen sharply, Florida’s housing market no longer is on a straight-up trajectory.

The inventory squeeze has eased somewhat while Florida remains a strong housing market. Here are a few of the pertinent stats:

•  Single-family sales: -7.9% year over year
• Condo and townhouse sales: -11% year over year
• Active inventory: +13.8% year over year
• New listings: -27.4% year over year
• Months supply: +47.4% year over year
• Days on market: +160% year over year

That litany of stats shows how dramatically the market has cooled. That new reality means that having a mortgage partner you can trust is more crucial than ever.

To match the needs of Florida’s real estate market, LendSure offers some hot loan products that will help you build your business:

Non-warrantable condo loans. LendSure prides itself on being a flexible lender, one that qualifies borrowers based on common sense rather than rigid rules. The latest condo guidelines from Fannie Mae and Freddie Mac, introduced in early 2022 to address the structural integrity of condo buildings, caused upheaval in the condo market. If you have a borrower whose conforming deal has been rejected or stalled because of the agencies’ onerous rules, we can help. LendSure’s common-sense rules allow for approvals of condo units that the agencies reject.

The high DTI program. Florida’s median home price was $420,000 in April 2023. At that price level, borrowers are looking for flexibility in terms of amortization schedules and qualifying parameters. Enter LendSure’s 55% DTI 40-year IO product. This innovative loan allows borrowers to show a debt-to-income ratio of up to 55%. What’s more, the 40-year amortization schedule lowers monthly payments, and the interest-only feature reduces payments even farther.

Loans for Foreign Nationals. The National Association of Realtors (NAR) recently reported that Florida was the top destination for foreign buyers for the 14th consecutive year, accounting for 24% of all international purchases. In the latest year reported by NAR, this lucrative segment saw more than $59 billion in purchase volume and nearly 100,000 buyers. Yet many of those buyers don’t qualify for U.S. mortgages. With that said, Foreign national lending presents a huge opportunity for you to grow your business. When you work with a trusted lender, you can capitalize on this underserved market segment.

DSCR loans for investment properties.  A debt-service coverage ratio (DSCR)  loan is designed to attract property investors. DSCR qualifies the loan based on monthly cash flow, not personal income documentation. LendSure looks at market rents to qualify the property (instead of considering only currently rented units to support the loan amount), creating an easier path to approval. In other words, not all units need to be rented. LendSure underwrites the investment property based on both current and future rent. LendSure has expanded its DSCR program beyond the typical one to four units – we make DSCR loans on properties with up to eight units. For an explanation of our DSCR loans, see this short video.

Bridge loans. Florida remains one of the nation’s hottest housing markets – and that creates challenges for buyers. LendSure’s bridge loans let home sellers tap their equity so they can become buyers today – not when their home sells weeks or months from now. In contrast to other bidders, who must wait to sell their current homes first, a buyer with a bridge loan has a real competitive advantage. A bridge loan lets your client make a winning offer, and they are not required to make monthly payments.

If you’re attending the Florida Association of Mortgage Professionals 2023 Annual Tradeshow and Convention in Orlando, please stop by our booth #114 and talk to one of our AEs about our product offering.

The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.

Are you ready to grow your business? Conventional loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, tools, support, and guidance they need in order to say “yes” to more of their clients.  This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!

Are you ready to benefit from a commonsense approach to lending?  Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.