Financing in Florida: The Best Mortgage Options in the Sunshine State

Dream of living near the water?

Florida is a peninsula that is surrounded by the Atlantic Ocean on the east and the Gulf of Mexico on the west. Home to 8,000 lakes, 1,700 rivers, streams and wetlands, and thousands of miles of man-made canals, there is a good chance you can find a home with water views, water access or waterfront.

Beach town on a budget:

Florida offers a lot of variety when it comes to home options for water lovers. Oceanfront homes can be quite expensive, but going a bit further inland will provide more affordable options.

However, that doesn’t mean buyers can’t find affordable beachfront or beach-adjacent properties. According to a recent article on Nasdaq.com, Port St. Lucie, Fort Meyers, Cocoa Beach, and Bradenton are the cheapest places to live near the water in Florida. With median home prices less than average beach towns, these cities could be a desirable choice for budget-minded buyers. FHA and Conventional mortgages might be a good loan option for borrowers in these areas.

Conventional loans are one of the most common type of mortgages because they are cost effective, applicable to just about any property type and offer flexibility in loan terms, programs, and limits. But most people think you need a 20% down payment to obtain a conventional mortgage, and that is simply not the case!

While a 20% down payment will allow you to avoid paying Private Mortgage Insurance (PMI), conventional loans only require 3% down! Also, PMI can be canceled once your property has 20% equity. This is a great option for borrowers with a good credit score as it can be more affordable than other loan programs.

FHA loans are backed by Federal Housing Administration and because of this guarantee, they are considered less risky by lenders. Therefore, this loan is a great option for buyers who have little saved for a down payment, less than perfect credit and low-to-moderate income. Typically, a minimum credit score of 580 and 3.5% down payment is required. The down payment, however, can be 100% gifted!

Luxury waterfront:

If your must-have in a home is a million-dollar view, direct access to crystal-clear waters, or a beach just outside your door, Florida doesn’t disappoint! TripAdvisor recently named Siesta Beach in Siesta Key and Henderson Beach State Park in Destin, FL as two of the top 10 beaches in the nation. Whether your dream is to live on the Gulf Coast, the Atlantic Coast or on any beach in between, MiMutual Mortgage offers Jumbo Loan programs to help you get there!

Our Jumbo loans can be used to purchase or refinance a primary residence, second home or investment property. We finance up to $4 million and have options with as little as 10% down. And unlike conventional loans, there is no private mortgage insurance (PMI) for having less than 20% equity!

Want to unlock your investment potential?

Florida offers immense opportunities for those looking to invest in real estate, especially in the rental market. With millions of visitors year-round, and one of the fastest-growing populations, traditional and short-term rentals are in demand.

Short-term rentals (STRs) are properties rented out for typically fewer than 30 days. Florida’s STR market has seen substantial growth due to the rise of online platforms like Airbnb and VRBO coupled with the state’s many tourist attractions and ability to cater to diverse range of visitors.

Analytic company, AirDNA, which tracks performance data on short-term rentals from over 120,000 global markets, recently released its report on the best STR markets in the United States. Three Florida cities, Spring Hill, Winter Haven, and Fernandina Beach made the top 15 in the nation.

Whether you already have multiple investment properties or are just starting your real estate journey, MiMutual Mortgage offers loan programs to meet the unique needs of real estate investors. If you are looking to buy a rental property in Florida, loan programs such as the DSCR and Asset Qualifier can get you the funds you need.

DSCR, or Debt Service Coverage Ratio, is a financial metric used to evaluate the ability of a property to produce enough income to cover the debt obligation. Meaning, it measures the actual or potential rental income against the mortgage payments.

This ratio is used as the primary qualifying factor instead of a borrower’s personal income. There is no Debt-to-Income Ratio calculation, and no personal income verification.

Asset Qualifier loans work well for retirees, business owners, and investors who may have a hard time qualifying for a traditional mortgage due to a lack of employment. With an Asset Qualifier loan, no income is needed

Under this loan program, borrowers qualify based on eligible assets like savings, retirement funds and investment accounts. Like the DSCR loan, there is no personal income verification. An Asset Qualifier mortgage loan can be used to purchase or refinance second homes and investment properties.

Pursuing the American Dream?

Florida has long been known as one of the most diverse states in America. In fact, one in five Florida residents were born in another country. In a report recently released by WalletHub, Orlando, Tampa, and Fort Lauderdale were ranked among the nation’s top 100 most diverse cities, based on ethnicity, race, language and birthplace.

So, for those who are ready to own a home in the United States but have not yet obtained citizenship, MiMutual Mortgage offers the ITIN and Foreign National home loans.

ITIN loans allow non-citizens and asylum seekers who do not have a Social Security number to apply for a mortgage in the United States. Instead of using a Social Security number, borrowers provide an Individual Taxpayer Identification Number (ITIN). This loan can be used to purchase single-family, multi-family or investment properties. With an ITIN loan, you can secure the dream of homeownership regardless of your immigration status.

Foreign National mortgage loans are for non-citizens that live outside the country but are seeking to purchase a home in the United States. As an alternate to a traditional home loan, it carries a higher down payment requirement and borrowers must have at least 12 months of reserves. However, for borrowers without a social security number and living abroad, this loan is a good option.

Are you a Self-Employed Small Business Owner?

According to a 2024 article by Small Business News Daily.com, Florida is the third-best state in the nation to start a business. Florida has no personal income tax, a 5.5% corporate tax rate and no payroll taxes. In a report by the U.S. Small Business Administration (SBA) it noted that small businesses, (those firms with less than 500 employees) account for 99.8% of all Florida businesses. So, if you are an entrepreneur in the Sunshine State, a Bank Statement Home Loan from MiMutual Mortgage may be right for you!

Owning your own business has its perks, but obtaining a traditional home loan may be challenging. A Bank Statement loan allows you to qualify for a mortgage using  your bank statements instead of paychecks or tax returns to verify your income.

This can be helpful for borrowers who have inconsistent income like realtors, independent contractors, or gig workers or for those who claim significant tax deductions like small business owners and investors. For those who have enough income to afford a home, but lack W-2s, Bank Statement loans can make homeownership possible.

Contemplating a Condo?

Condominiums have grown in popularity every decade since 1970. And since 2010, the number of condo associations has increased by approximately 20%. According to the Community Associations Institute, there are over 1.5 million condo units in Florida. In West Palm Beach-Boca Raton area, approximated 28.4% of homes are condos and in Ft. Lauderdale-Hollywood area, condominiums make up approximately 24.3% of housing.

A condominium is a housing unit that’s part of a larger property complex. Each unit is individually owned, and the complex can be as large as multiple high-rise buildings or be as small as a handful of one-story units. These communities include non-exclusive interest in shared communal areas that are maintained by a homeowner’s association (HOA). Every HOA is different. But in general, owners pay a monthly fee to the HOA that covers everything from landscaping, to building upkeep, to the amenities the community offers.

Condominiums are a great solution for home buyers who want to own their own space but do not want to spend a lot of time on the maintenance or yard work that is associated with a traditional single-family home. Additionally, common amenities like pools, gyms, clubhouses, and outdoor activities like pickleball and bocci ball courts offer built-in socialization opportunities.

However, obtaining a mortgage to purchase a condo can sometimes be difficult. Not all lenders will finance condos, especially when it is considered non-warrantable. If you are unsure whether the condominium you want to buy is warrantable or not, the condo’s management office or your Loan Officer can help you determine this.

But, when you use MiMutual Mortgage as your lender, you don’t have the hassle of ensuring whether your condo is warrantable. MiMutual Mortgage is your go-to lender for any type of condo!

What is a non-warrantable condominium?

For a condo to be warrantable, it must meet certain guidelines as set by Fannie Mae or Freddie Mac. For example, warrantable condos cannot be a part of a timeshare, at least half the units must be owner-occupied, and short-term rentals must not be allowable under the community guidelines.

Therefore, non-warrantable properties include projects that are new construction and not yet completed, condo hotels (condotels), short-term rentals (STRs), timeshares, fractional ownership properties, multi-unit condos, or have a high percentage of units that are occupied by non-owners.

Buying a condo in Florida is an excellent choice for first-time buyers, empty nesters, retirees, or anyone looking for a vacation home or for those wanting to rent the condo out for profit! At MiMutual Mortgage, we offer financing solutions for condominiums, so you can get the Florida condo you want…minus the hassle and stress you don’t.

Lacking a Backyard Oasis?

Homeowners are increasingly looking for homes that provide an outdoor space to relax and unwind. And when you think of a Florida home, you likely think of lounging by a pool.

According to the trade group Pool & Hot Tub Alliance, there are 10.4 million residential swimming pools in the United States. That’s about one pool for every 31 people nationwide. But in Florida, that average is even higher…with 1,590,000 residential pools in the Sunshine State there is 1 pool for every 14 people!

Owning a home with a pool has it advantages, especially in Florida where you can enjoy being poolside year-round. Pools not only offer a great way to relax, a spot to create memories with the family or get exercise, but they also increase the value and appeal of your home.

So, what if you find the perfect house, but it lacks the pool you’ve been dreaming of? MiMutual Mortgage has the solution…a HomeStyle Renovation loan!

With a HomeStyle Renovation loan, you can purchase AND rehab your new home. The purchase and renovation costs are combined into one loan which means you will have just one monthly mortgage payment.

This loan can be used for renovations inside the home like a new kitchen or bathrooms but can also be applied to adding structures such an Accessory Dwelling Unit (ADU), a garage or swimming pool. Furthermore, the loan amount you can borrow is based off the AFTER-improvement value, making it easier to beat the heat in your very own Florida oasis!

Ready to Retire?

With its year-round warm weather, endless opportunities for outdoor recreation, and a high-percentage of retirement communities with resort-style amenities, it’s hard to think of Florida without thinking of retirees!

As the state with the second highest number of residents over the age of 65, it is no surprise that Florida consistently ranks high each year on the annual US News and World Report Best Places to Retire list. Ranking is based on housing affordability, happiness, desirability, retiree taxes, the job market and access to quality health care.

Five Florida cities, Tampa, Sarasota, Lakeland, Melbourne, and Orlando ranked in the top 25 places to retire this year, while Daytona Beach ranked in the top 10 in the nation! If you are looking to retire in the Sunshine State, MiMutual Mortgage offers a variety of loan options to help you do just that. One option is the Reverse Mortgage loan.

A Reverse Mortgage is a home loan exclusive to seniors aged 62 or older. This type of loan allows borrowers to use their home as collateral toward a new home or to age in place in their current home without having to make the usual monthly mortgage payments. MiMutual Mortgage has Loan Officers who specialize in this type of loan, and they help determine if this is right for you.

Florida is also a great place to retire if you are a military Veteran. Personal finance publisher, Kiplinger, ranks Florida as one of the top 5 most tax-friendly states for Veterans. With no state income tax, Veterans can keep more of their military retirement income in their own pockets.

Home to a significant military presence, there are 21 bases throughout the state. In fact,  Eglin Air Force Base in Okaloosa County is the largest Air Force base in the world at 640 square miles! With so many military installments, there is a wide variety of services available to those who have served.

MiMutual Mortgage understands the unique needs of Veterans. With our VA loan program, Veterans, Active Duty, and qualifying spouses can obtain 100% financing. This means no down payment is needed! Our VA loans offer flexible qualify guidelines, lower credit score requirements and we do not charge an underwriting fee.

Is There a Doctor in the House?

If you are healthcare provider, moving to Florida for work may be great for your career. Hosptialcareers.com recently ranked 51 cities across the nation based on demand for healthcare professionals and cost of living. Florida ranked #5!

As a prime destination for senior citizens, the state is struggling with a shortage of specialized healthcare providers such as Doctors, Physician Assistants and Registered Nurses. With an abundance of job opportunities, coupled with a desirable climate, it may make sense to establish roots in Florida.

At MiMutual Mortgage, we commend healthcare providers for the years of education that has been invested into your career and we understand that often comes with a significant student loan burden.

A Doctor Loan from MiMutual Mortgage features financing up to $1.5 Million, a low down payment requirement, an adjustable-rate option and is available to a number of professionals, such as Physicians, Nurses, Dentists, Pharmacists, Veterinarians and more.

Ready to make a move?

From stunning beaches, a warm climate and world-famous amusement parks, to available housing and low taxes, there are so many reasons Florida is a great place to own a home! At MiMutual Mortgage, our goal is to make homeownership accessible to everyone, regardless of their financial background or unique needs. Connect with one of Loan Officers to see what loan option is right for you!