The U.S. housing market finally is showing signs of cooling, but Florida real estate is still on fire.
The median single-family home price in the state jumped 19.7% from June 2021 to June 2022, according to the Florida Realtors, while the median price of condos and townhouses soared 26.4%.
The rapid appreciation reflects still-strong demand for Florida properties. The state’s combination of warm weather, a strong economy and attractive taxes mean Florida continues to attract buyers from around the country and around the world.
While Florida remains very much in a seller’s market, the inventory squeeze has eased somewhat. Here are a few of the pertinent stats in the Florida condo market:
- Active inventory: +2.4% year over year
- New inventory: +4.7% year over year
- Months supply: +11.8% year over year
- Days on market: -29.4% year over year
That final stat shows condos are moving fast, and that means that having a mortgage partner you can trust is more crucial than ever. LendSure wants to make your job easier, and we can sign off on approved exceptions quickly and with ease.
To match the heat in 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 relies common sense rather than rigid rules. The latest condo guidelines from Fannie Mae and Freddie Mac, introduced in early 2022 to address 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, including condotels.
The high DTI program.
Florida’s median home price was $420,000 in June 2022. 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 further.
Foreign buyers are coming back, and the National Association of Realtors recently reported that Florida was the top destination for foreign buyers for the 14th consecutive year. The Sunshine State accounted for 24% of all international purchases. LendSure has one of the strongest products in this space. Foreign national lending presents a huge opportunity for you to grow your business. In the latest year reported by NAR, this lucrative segment saw more than $59 billion of purchase volume and nearly 100,000 buyers. Yet many of those buyers don’t qualify for U.S. mortgages. Foreign national lending doesn’t have to be complicated. When you work with a trusted lender to guide you through the process, you can capitalize on this underserved market segment.
DSCR for investment property loans.
LendSure’s debt-service coverage ratio (DSCR) program is designed to be attractive to property investors. 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 investment property loans based on both current and future rent. For an explanation of our DSCR loans, see this short video. Meanwhile, LendSure has expanded its DSCR program beyond the typical one to four units – we make DSCR loans on properties with up to eight units.
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? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, the tools, support and the 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!