Most real estate buyers don’t have the cash on hand to purchase their property outright. Fortunately, you have a wide range of options when it comes to Fort Myers, Florida, loan programs. From banks and credit unions to private money lenders in Florida, this area provides ample opportunities for anyone investing in real estate.
Conventional Fort Myers, Florida, loan programs are traditional home mortgages that are not backed by a government agency. These loans typically come from financial institutions like banks and credit unions. Conventional loans are by far the most common option for new home sales, accounting for 78.5% of home loans that originated in the first quarter of 2022. Lenders typically have strict requirements for this type of loan. In most cases, you must have a credit score of at least 620 and put 20% down on the home.
Government-Backed Loans in Florida
Government-backed loans have the government’s insurance behind them, which means that lenders are often willing to make greater concessions on the requirements for this type of funding. Since the lender takes less of a risk on a government-backed loan, they can make this funding available to individuals with a lower credit score or smaller down payment. Some common government-backed loans include:
A bridge loan can help you fund the purchase of a new Fort Myers home before you’ve sold your current property. Bridge loans from private money lenders in Florida can give you fast access to the cash you need for a coveted property. The housing market can be extremely competitive. Homebuyers who wait too long to make an offer on a home may lose their chance entirely.
Bridge loans usually last from six to 12 months, as they’re only intended to buy you enough time to sell your existing home as you move into your newly purchased property. Once you’ve sold your previous house, you should plan to pay off your bridge loan. If you don’t have enough to fully fund the cost of your new house, you should convert to a traditional mortgage at this point with more favorable terms.
Fix and flip Fort Myers, Florida loan programs are designed for real estate investors who want to purchase and rehab properties for resale. Real estate investors typically use this type of loan for a foreclosure or short sale property that requires a good deal of work. This type of hard money loan will typically include funds both for the purchase of the home and for the required renovation.
Once the flip is complete, the investor sells the property at a profit and pays off the short-term loan. Fix and flip loans offer fast access to the necessary cash to purchase a distressed home with investment potential. With Fort Myers real estate prices on the rise, flipping properties can prove quite lucrative. Home prices in Fort Myers increased 12.5% between September 2021 and September 2022, reaching a median of $368,000.
New construction loans provide the funds for the lot as well as the construction of the subsequent property. In some cases, you can also use this type of loan for extensive renovations to an existing property. This type of renovation loan borrows against the anticipated value of the finished home.
If you’re constructing a new home from the ground up, you may choose a construction-to-permanent loan that converts to a permanent mortgage when the work is complete. You may also opt for a construction-only loan. With this option, you’ll take out another mortgage when the build is complete to pay off the initial construction loan.
To learn more about Fort Myers, Florida, loan programs, contact our team at Gauntlet Funding. We can help you explore your options and find the best loan type for your individual needs.