Home Buying in Tampa>Question Details

Deb, Home Buyer in Dayton, OH

Our credit scores are good (750 ish) and our home up north is paid off. What do I need to get approved to buy a second/vacation home in Tampa?

Asked by Deb, Dayton, OH Thu Dec 8, 2011

I'm looking to buy a house around $135k, which is about what my home up north is worth. I only have 5% or so down. If that is enough, should I go thru a lender/broker up here, down there, or does it even matter? And do you have any other important tips or advice for me to make this happen?

Thank you!

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Since your home in Ohio is paid off, you could consider getting a equity line of credit on that home to use for a larger down payment on the Florida home. This would allow you to avoid the PMI that Alma mentioned. Or, with your low DTI on your $7500 monthly income, you could live very frugally for the next 4 - 6 months and save several thousand additional dollars. Prices in the metro Tampa Bay area are still falling and in late Spring/early Summer there will be more properties available to choose from and at lower prices when you are doing your home search.
1 vote Thank Flag Link Thu Dec 8, 2011
I would consider my DTI to be very low; including taxes and insurance on current home and all outstanding debt, payments are less than $750 per month on $7500 per month gross income. I can always borrow from an IRA or 401k too (I believe) for additional down payment, but I was hoping to avoid that hassle and only use cash on hand.
1 vote Thank Flag Link Thu Dec 8, 2011
Hi Deb,

If you can access 401k money to come up with 20% you can avoid paying expensive Private Mortgage Insurance so it may well be worth the paperwork hassel.

All the best,
Alma
http://www.SoldOnTampa.com
0 votes Thank Flag Link Thu Dec 8, 2011
Hi Deb,

Congratulations for paying off your mortgage up north!

You have gotten a lot of helpful answers here.

Also contact credit unions because they may have programs that will allow you to purchase with only 5% down.

Here is a helpful site written by a Wharton Business School professor that has good advice on how to shop for a mortgage:

http://www.MtgProfessor.com

If you haven't chosen a Realtor to help you find the right home, you're welcome to browse "like a Realtor" by signing up for a free ListingBook account on my website:

http://www.SoldOnTampa.com

All the best,
Alma
Alma Rose Kee, PA
Future Home Realty
813.244.9898
0 votes Thank Flag Link Thu Dec 8, 2011
Hi Deb,

I don't forsee any issues getting you what you want. I'm a mortgage broker as well and would be happy to assist you with both your loan and finding your home here in Tampa. Let's get you pre-qualified first.
Go to http://www.KirstenMortgage.com/LoanApplication and complete the form as completely as possible.
You can leave it and come back to it as needed.
0 votes Thank Flag Link Thu Dec 8, 2011
Deb, I have already received a lot of good and pertinent advice. You may have a bank or mortgage lender in Dayton Ohio that has branch offices in Florida and could start the initial process by discussing your intentions with one of your local banks that offer such a convenience. The actual application and process will have to be conducted by a Florida licensed agency and representative.

Even though your property is paid off up north, you still have carrying costs such as homeowner's insurance and property taxes. These monthly costs are factored into your application and added to the monthly costs of your second home in Florida. Then your debt to income (DTI) is calculated to determine the loan amount that you could carry.

To submit an offer in Florida, it would be advisable to have your pre approval letter in hand so that the letter could be submitted along with the offer to the Seller. If you select a bank owned property or short sale this would be a mandatory requirement. If you have approximately 5% or $7500 as a downpayment now you might have to consider lowering your price poit when looking for a second home to meet the 10% down requirement. Again, when you apply for a mortgage the process will provide you with a lot of answers to your question.

Properies price $150,000 and under are in high demand. You may be surprised to encounter multiple offers and Sellers unwilling to throw their properties at you to purchase them. Right now Florida is beginning the winter season which based upon early signs of heavy traffic looks like it will be a very busy year. If you are serious about purchasing a second home do not wait as the process might take longer than you anticpate.
0 votes Thank Flag Link Thu Dec 8, 2011
Your credit scores are excellent and with your northern home paid off you sound like an great candidate for a second home purchase. You may want to consider calling the new home in Florida your primary residence to enable you to qualify with less down and to take advantage of Florida's Homestead exemption. The added expenses of owning two homes is something else to consider in the overall picture. I would recommend talking with several local lenders to qualify you for the purchase.
0 votes Thank Flag Link Thu Dec 8, 2011
As a second home you do have to qualify for the loan similar to a primary. It must be for your personal use and you will be limited by your current income. There are some great options in Florida but to be safe you will want to have at least 10% for your down payment. You would be best to use a local lender since each state has their own licensing and requirements. Give Kevin Reeves a call at 813-728-4992 from New Penn Financial and he can walk you through the basic information and get you answers.
0 votes Thank Flag Link Thu Dec 8, 2011
This question cannot be properly answered without know what your annual income is. Even with the home paid off up north, you still obviously have to pay property and insurance. This will be factored into the equation when a mortgage rep determines your borrowing ability for the second home in TB.
0 votes Thank Flag Link Thu Dec 8, 2011
Deb,
You have picked the perfect time to acquire a Florida home. There are still good values to be realized in the Tampa area.

I would suggest a preliminary conversation with your financial planner or accountant in regards to your objectives in home purchasing. This will establish a foundation from which to begin your conversation with Tampa area lenders and real estate professionals. You absolute must work with a local lender. A call center in Utah can present real challenges in time critical situations.

There simply too many options available to you to attempt a comprehensive review in text.
Contact a local real estate agent and explore how your situation can be managed to achieve the best outcome for you.

Best of success in acquiring your "Fun in the Sun" home.
0 votes Thank Flag Link Thu Dec 8, 2011
Hi Deb - You will probably need about 10% down to purchase a 2nd home. But if you're planing to spend more than 6 months in Tampa, it would be considered your primary home and you could put less money down. As for the lender, they must be licensed in Florida.

You can search for Tampa properties by using the link below.

Important tip: Bring lots of sunscreen :)
Web Reference: http://tampahouse1.com
0 votes Thank Flag Link Thu Dec 8, 2011
Deb,

Since it is your second home, you may fall into an investment category and 5% down may not be enough. I would recommend you interview numerous mortgage lenders to get the best deal. Also, working with a mortgage broker down here will help minimize the anxiety pertaining the what the title company needs to close, since they know the requirements in Florida. If you need help, I would be happy to give you a list of tried and true mortgage brokers and help you with finding the right home here. PLease feel free to look at our website, which gives you access to MLS and may help you to find the right area.

Bill Szydlowski
Future Home Realty,
813-323-4443
Web Reference: http://www.tampamyhome.com
0 votes Thank Flag Link Thu Dec 8, 2011
Deb,
Give me a shout at 813-849-8554! I will put you in touch with a few lenders here and we can discuss exactly what you are looking for. You'll need some professional eyes and ears on the ground here!!
Mark
0 votes Thank Flag Link Thu Dec 8, 2011
Good Morning,
You will need between 10-20% down. Depending on your debt vs your income, we may possibly be able to do only 10% down. The process is very easy. If you would like to email me your phone number, I would be glad to call you and give you the information you would need or I can email it back to you. Whichever is easier for you. Rates are so low right now, it is crazy.

Your question regarding a Bank vs a Broker. A Bank has 4 corners and alot of times are very hard to get done and takes longer. With a Broker, some charge you more on the fees, but at the present time, I am actually giving credits back for the closing costs. Very rarely anymore do we have a 1% or more Origination Fee. The time frame for us to close a loan would be within 30 days from when you have an Executed Contract and Loan Documents signed. In alot of cases, it ends up being about 3 weeks.

Please let me know if I can help you out in any way or answer any questions.

I was born and raised in Tampa. :)
0 votes Thank Flag Link Thu Dec 8, 2011
Hi Deb!

Try working with a local lender that understand the local market.

Second home loans are a huge part of our local market.

Good Luck!
0 votes Thank Flag Link Thu Dec 8, 2011
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