FAQs
Closing costs for a home equity loan or home equity line generally range from 2% to 6% of the loan amount. These costs may include appraisal fees, title services, and lender fees. Some lenders offer no-closing-cost options, but this may result in higher interest rates or fees over the repayment period.
Residential bridge loans are not generally available at traditional banks. Often, the best way to get a bridge loan is to check out your local hard money lender. The Associates Home Loan of Florida is proved to offer consumer bridge loans and other mortgage loan products to individuals looking to purchase real estate in Florida.
Whether you can get a bridge loan with poor credit will depend on your lender.
The Associates Home Loan prides itself on helping individuals who have financial difficulties get back on their feet. While traditional lenders will balk at funding a loan for an individual with a low credit score, we offer bad credit loans and hard money loans to help them meet their needs.
Your ability to secure a bridge loan with poor credit will depend on a variety of factors, including the amount of equity in your property, your income, your debt-to-income ratio, and more.
Every situation is different. The best way to ascertain whether you’re eligible for a bridge loan is to speak with one of the professionals at The Associates Home Loan of Florida.
Every loan product carries a risk, with the main risk being the inability to pay it off. When you agree to a bridge loan, your current property is used as collateral to secure the loan. If you default on the loan, ownership of the property will be transferred to the lender.
Because bridge loans are short-term loans, they must be repaid, with interest, within 12 months. When considering the pros and cons of a bridge loan, you’ll want to calculate your monthly payments and determine whether you can pay back your loan according to the loan terms. Ideally, your property will sell and you will be able to put those funds toward repayment. There is a chance, however, that your current property won’t sell.
The average loan interest rate for a consumer bridge loan is generally higher than that of a mortgage from a traditional lender. The exact interest rate will vary depending on the specifics of your loan application, however, most fall within the range of 8 to 10%. In addition to the interest, lenders may charge origination or servicing fees.
Bridge loans are asset-based and require that your current property is used as collateral to secure the loan. Once your home sells, the expectation is that the proceeds of the sale will go towards paying off the bridge loan.
Because bridge loans are short-term loans that have a specific goal, the application process and turnaround time can be pretty quick. You can make your application process run more smoothly by ensuring you have all the documentation your lender requires.
At The Associates Home Loan, we try to close and fund loans in 7 to 14 days. You can start your application on our website at any time by clicking “Apply Now.” Alternatively, you can stop by our office or give us a call at 813-328-3632. Our friendly loan professionals are always available during business hours.
If you are in the market for a home and are ready to make an offer on a new property but haven’t sold your existing property yet, applying for a bridge loan can help you secure your new property without worrying about when your existing property will sell.
To ensure you’re able to make an offer when you find that property you just have to have, you’ll want to apply for your bridge loan when you’re ready to purchase a new home. That way, you can make a competitive offer that isn’t based on contingency or on a loan application. Knowing that you’ve been approved will make the process easier, increasing your chances of securing the property you want.
The loan amount of your bridge loan will depend on the equity you have in your current home or real estate property and the terms set by the lender. Typically, borrowers can access up to 60-80% loan-to-value (LTV). Some lenders also allow to use a bridge loan as a second mortgage, lending a percentage of the value of the first home, which is then paid off when the home sells. To determine how much you may be eligible to borrow, call The Associates Home Loan of Florida today at 813-328-3632.
Ultimately, different lenders have different requirements. The best way to determine whether you may qualify for a bridge loan is to speak with a skilled loan professional. Most lenders will take several factors into account when considering whether to grant a bridge loan, including the amount of equity or value of your current home or real estate property and your debt-to-income ratio (how much of your income goes towards servicing your debts).
To be eligible for a bridge loan from The Associates Home Loan of Florida, you must be purchasing a property in Florida. You don’t need to already be a Florida resident, and you don’t need to have excellent credit. In fact, The Associates Home Loan is proud to help individuals who are rebuilding their credit.
Using a home equity loan for debt consolidation can be a smart financial move. By paying off high-interest debts with a loan offering competitive rates, you can simplify your finances and save money on interest over time. Be sure to compare the total cost, including closing costs, before proceeding.
A HELOC typically comes with a variable rate, which means the interest rate can change over time based on market conditions. This may result in fluctuating monthly payments during the draw period or repayment period, so it’s important to plan accordingly. If stability is a priority, you may want to explore fixed-rate alternatives.
During the draw period, you typically pay interest only on the amount borrowed. Once the draw period ends, you’ll begin repaying both principal and interest over the repayment period, which may be structured with fixed or variable rates depending on the agreement.
Yes, homeowners can use a home equity loan or home equity line to refinance their mortgage, potentially reducing their monthly payments or securing a lower interest rate. This strategy can free up cash flow for other financial needs.
You’ll hear something different from every lender you ask. The truth is that home equity loan approval can take anywhere from a week or two to several months, depending on factors such as your credit line, the loan amount, and the lender’s process. Factors like property appraisal, verifying your mortgage details, and assessing closing costs can impact the timeline. For a detailed breakdown, read our article, “How Long Does It Take To Get A Home Equity Loan?”
Each loan is different, and how quickly your bridge loan is disbursed will depend on your lender.
At The Associates Home Loan, we try to have all of our approved loans disbursed within 14 business days of the application date. We understand the importance of having your loan funds available so you can quickly act on any exciting properties.
FHA loans offer both fixed-rate and adjustable-rate mortgage (ARM) options, giving borrowers the flexibility to choose what best suits their financial situation. A fixed-rate FHA mortgage provides stability, as the interest rate and monthly payments remain constant throughout the loan term. On the other hand, an ARM starts with a lower interest rate that may adjust periodically, making it an option for borrowers planning to sell or refinance before the rate increases.
If you’re unsure which option is best for you, our mortgage lender team can help you make the best choice based on your financial goals.
Your circumstances dictate whether an FHA loan is better for you than a conventional mortgage. As the name implies, conventional loans are for folks with “conventional” or ideal circumstances. For that reason, they offer low down payments and flexible terms.
However, you might have substantial income from freelance sources or non-traditional monthly income sources, a less-than-perfect credit rating, or a higher-than-average debt-to-income ratio. In that case, a nonconforming FHA-backed loan is likely more accommodating.
There’s no minimum monthly income requirement for a Florida FHA loan. You also have additional flexibility with down payments. For instance, you can use gift funds from friends for family. If you qualify, you can also get assistance for a down payment through various sponsored programs.
One caveat is that FHA loans cannot be used for investment properties or vacation homes. Still, they are a great option for a primary residence.
The Federal Housing Administration updates FHA loan limits annually, and they vary by locality and home type. The most up-to-date list is on the Department of Housing and Urban Development (HUD) website.
For 2024, the maximum for a single-family home in 38 metropolitan statistical areas of Florida is $498,257. The micropolitan statistical area of Key West has the highest limit of $929,200. Check the most recent limits on the United States Department of Housing and Urban Development (HUD) website or consult with The Associates Home Loan agent to verify the FHA loan limits for your area.
The Florida FHA loan is for borrowers who are typically at a higher risk of defaulting than those who qualify for conventional loans. For that reason, all FHA home loans require paying two mortgage insurance premiums (MIPs).
You must pay one premium at closing, and the other is an annual fee. However, you can finance the upfront MIP into your loan. It amounts to 1.75% of your base loan.
Your annual MIP depends on your loan term, loan amount, and loan-to-value ratio. If you put down at least 10%, you pay this MIP for 11 years.
If you pay less than a 10% down payment, the annual MIP lasts for the life of the loan. Be aware that you may be able to get rid of this insurance earlier if you convert your FHA loan into another mortgage later.
Remember to budget for closing costs and fees when purchasing a home, such as:
- The lender’s origination and underwriting fees
- Fees for document preparation, title search, and insurance
- The cost of appraisal, surveys, and inspections
- Your first homeowner’s insurance premium
Closing costs are often less than 3% of the total cost, but this still adds up to a few thousand dollars. Talk with your mortgage lender about the possibility of rolling the expense into your Florida FHA loan.
To apply for a Florida FHA loan, you’ll need the following paperwork:
- Two years of pay stubs or W-2 forms if you’re an employee or two years of tax returns if you have self-employed income
- Proof of your Social Security number
- A valid government-issued ID
- A credit report with two established accounts in good standing and no delinquent federal debts or judgments
- Proof of stable employment history
As with other aspects of your loan application, our team at The Associates Home Loan of Florida, Inc. can help you ensure that you have the right documents for your loan.
Absolutely. Strategies like paying off debts, consolidating loans, or adding them as an authorized user on your credit card can help.
Yes, in joint mortgages, lenders often base the interest rate and terms on the lowest credit score between applicants.
While each lender sets its own minimum credit score requirements, many prefer at least one borrower to have a good credit score above 620. FHA loans may accept lower scores.
Associates Home Loan offers non-traditional home loans throughout the entire state of Florida, including Tampa. Our team is dedicated to serving clients across Florida, ensuring you have the financing options you need, regardless of location.
An interest-only loan allows you to pay only the interest for a certain period. After this specified period, you’ll start paying off both the interest and the principal. This loan type is beneficial if you want to initially keep your monthly payments low.
For a stated income loan, borrowers typically need to demonstrate their ability to pay through alternative verification methods rather than traditional tax returns or W-2 forms. This makes it ideal for self-employed borrowers.
Yes, depending on your circumstances! Many non-traditional loans are designed for individuals with lower credit scores or those who have faced credit challenges in the past. Our loan experts will help identify options based on your unique financial background.
A non-traditional mortgage is a loan option for borrowers who may not qualify for conventional mortgages due to their credit history, employment type, or unique income situations.
In Florida, a license is no longer required to be a hard money lender as of March 21, 2018, when Governor Rick Scott signed House Bill 935 into law. For loans that do not exceed an 18% annual percentage rate, no consumer finance license is necessary. However, if a loan includes a mortgage against real property, a person may need to obtain a mortgage lender license under Chapter 494, Florida Statutes.
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.
An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).
There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Associates Home Loan of Florida can help you evaluate your choices and help you make the most appropriate decision.
For most homeowners, the monthly mortgage payments include three separate parts:
- Principal: Repayment on the amount borrowed
- Interest: Payment to the lender for the amount borrowed
- Taxes & Insurance: Monthly payments are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the County Tax Assessor and property insurance company.
The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
- Earnest Money: The deposit that is supplied when you make an offer on the house
- Down Payment: A percentage of the cost of the home that is due at settlement
- Closing Costs: Costs associated with processing paperwork to purchase or refinance a house
Closing costs are determined by the total amount of the loan. Typically closing cost are between 4% and 10% depending on which loan product is used.
There are no prepayment penalties for homes that are owner occupied.
Yes, home owners insurance is required for all owner occupied homes.
We can make loans up to a debt to income ratio of 55%. This is calculated by adding together all monthly debt and dividing the total into the monthly income amount.
A hard money loan, also known as a private money loan, is a short-term, asset-based loan typically utilized by real estate investors to finance investment properties. These loans are offered by private investors or companies, such as direct hard money lenders, and are commonly employed for real estate transactions, including rental property loans and bridge loans.
Real estate is typically utilized as collateral for private money loans, including real estate loans, with other hard assets like vehicles, equipment, machinery, and precious metals also accepted. Customary terms of a hard money loan include a repayment period of 12-24 months, loan amounts ranging between 70% and 80% of the appraised value of the property, and interest rates of approximately 15% per annum.
The primary benefit of using hard money loans in Tampa is the immediate access to investment capital, enabling investors to quickly capitalize on time-sensitive opportunities such as real estate investments, home repairs, and foreclosure.
The credit score requirement for hard money loans can vary by lender, but it typically falls within the range of 550 to 650. Not all hard money lenders in Tampa necessitate a credit check, with many focusing more on the deal itself and the investment opportunity. It is advisable to research individual lenders to gain an understanding of their specific requirements.
In addition to credit score, Tampa hard money lenders also assess the borrower’s capacity to make a substantial down payment, their income stability, and the worth of the asset or property being used as security for the loan. It is possible to obtain a hard money loan in Tampa with a suboptimal credit rating, with multiple hard money lenders in the area specializing in providing loans to individuals with bad credit.
Hard money loan rates are generally higher than those of conventional loans, with actual rates differing depending on the lender and the borrower’s qualifications. The average interest rate for hard money loans in Tampa can range from 6.99% to 18%, depending on the direct lender’s terms. This is slightly higher than the national average of 11.05%, with the average interest rate for hard money loans in Tampa, including bridge loans, being approximately 11.6%.
Higher interest rates for hard money loans can be attributed to the increased risk associated with these types of loans, as they are typically short-term and asset-based. However, the speed and flexibility offered by hard money loans make them an attractive option for investors and homeowners who require quick access to capital.
Hard money loans are secured by real property and may not impact the borrower’s credit score, depending on the lender’s reporting practices. Hard money lending does not utilize credit score as a factor when making lending decisions. The reporting practices of hard money lenders in Tampa may vary, so it is advisable to contact individual lenders to inquire about their specific practices.
It is important to note that although hard money loans may not be reported to credit bureaus, they are still secured loans backed by real property. Failure to repay the loan could result in the lender taking possession of the collateral, which could have a negative impact on the borrower’s financial situation.
Overall, hard money lenders are typically reputable, but there are some scams to be aware of. Be sure to research the lender and do your due diligence before signing on the dotted line.
In most cases in purchases and refinancing we can close and fund in 7 to 14 business days of the application date.
Payments made on private mortgage loans are typically not reported to credit bureaus unless your lender reports them, so you may need a third-party service to help build credit with your private loan.
Private lending is generally not recommended for long-term investments due to the short repayment terms, but it can be a useful bridge until refinancing with a traditional mortgage is possible.
Private loans can be funded much faster than traditional loans—often within days—making them ideal for time-sensitive real estate transactions.
Private lending offers faster funding, easier qualification requirements, and more flexible terms compared to traditional bank loans but typically comes with higher interest rates and shorter repayment periods.
Private lending is beneficial for real estate investors, house flippers, homeowners with bad credit, and those needing quick access to capital for time-sensitive projects.
No, private mortgage loans are often based more on the value of the collateral (the property) than the borrower’s credit score, making them an option for individuals with poor or limited credit.
Having a co-signer on a VA loan can boost your income and borrowing power. However, the rules depend on who co-signs. Veterans or eligible spouses can co-sign without affecting the 0% down payment, while non-VA-eligible co-signers require a down payment of at least 12.5%.
VA loans can be used for new construction. However, not all lenders offer VA construction loans. At The Associates Home Loan of Florida, Inc., we can guide you through the process.
Yes, some closing costs can be included in your VA loan, such as the VA funding fee. Additionally, sellers are allowed to cover certain closing costs, reducing your out-of-pocket expenses.
While VA loans do not have a cap on the amount you can borrow, there are limits on how much the VA will guarantee. This amount depends on the county loan limits and your entitlement.
You may still qualify for a VA loan even if you’ve experienced bankruptcy or foreclosure. The VA loan program has more flexible credit requirements, and eligibility is often restored after a waiting period.
Yes, VA loans are designed to be more accessible for borrowers with varying credit histories, including those with a low credit score.
Both a bridge loan and a hard money loan require you to have equity in your current property and that your property be used as collateral to secure the loan. However, their goals differ. While a bridge loan focuses on the short-term goal of helping you purchase a new property, hard money loans can be used in a variety of ways, such as funding investment properties, renovations, or even business needs.
In addition, depending on your lender, hard money loans often have longer terms than bridge loans, providing more flexibility for borrowers. It’s important to note that some lenders do call their bridge loans “hard money bridge loans,” though this does not extend the terms of the loan. It merely reflects that, in general, individuals who apply for a bridge loan are in a difficult situation.
Each loan is different, and how quickly your bridge loan is disbursed will depend on your lender.
At The Associates Home Loan, we try to have all of our approved loans disbursed within 14 business days of the application date. We understand the importance of having your loan funds available so you can quickly act on any exciting properties.
