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When life gives you lemons, you can make more than just lemonade.

Writer's picture: Celeste Jo WallsCeleste Jo Walls

Updated: Jun 15, 2022

Latest takeaways on the state of the Florida mortgage industry


The old adage, "when life gives you lemons, make lemonade," in my opinion, is a little lacking. Maybe it's because I'm an optimist (or maybe it's because I really love lemons, lol), but I am of the opinion that (just like there are so many things I can do with this deliciously tart citrus), there is always more than one Florida home loan solution to a problem.


For the Florida mortgage industry, if you are a buyer in this current Florida housing market, you might be feeling a little sour lately. Rates are steadily rising, there are more buyers than there are homes for sale, and home prices have launched sky-high like a space shuttle out of Cape Canaveral! (That's my cheese-ball, Florida-style humor for ya. Sorry (not sorry), just couldn't help myself!)


What's a Florida homebuyer to do!?



Well, just like you can take all those lemons and make: lemonade, lemon-caper pasta, lemon cake, lemon garlic spinach (this is one of my daughter's favorite vegetable recipes, actually), or a Beesnees cocktail ("Please drink responsibly". . . Being Captain Obvious here for a second.) . . . There are a lot of solutions out there for helping you buy a new home in Florida right now (not next year, when prices and rates have potentially risen . . . Again.) Let's address each current state of the housing market issue one by one, shall we?


  1. Rates are steadily rising: Oh, boy. Is this a big lemon or what? When someone with credit score of 700 and a modest down payment of 3% could have gotten an interest rate around 3% just last year, now (at the publishing of this blog), it's a very different story. Comparatively, a borrower putting down 30% with a FICO of 741+ will be looking at a rate of about 5.5%, give or take a 0.25 point, depending on market conditions upon origination. Any way you slice it, that's a pretty big difference in a very short amount of time. Here are just a few of the many ways I help my clients with this challenge:

    1. First, we discuss how much you want and/or need to put down. For example, a veteran can finance 100% of the purchase price with a VA loan. But, depending on where you want your monthly house payment to land, you may want or need to put some money down.

    2. Next, I find the lowest rate available across many lenders (this is part of what makes me a personal shopper for your home loan).

    3. Then, we discuss the pros and cons of buying down on the rate and if it's a possible benefit for you. As a homebuyer, you can pay "points" (aka, a one-time fee that's rolled into your final closing costs) to get a lower interest rate. This is not a good option for everyone. However, I have found it an excellent option for some when it comes to helping them meet their long-term housing and financial goals.

    4. Next, we consider mortgage insurance. For conventional loans, if your down payment is less than 20%, you will pay monthly mortgage insurance as part of your house payment. But, a lot of buyers don't know (and a lot of banks don't want you to know) that some lenders offer discounted mortgage insurance to earn your business over other lenders. That's right, it's the same type of loan, but one lender may offer a lower monthly mortgage insurance payment over another lender. How does that benefit you? It means a lower monthly house payment!

  2. It's predominantly a seller's market: this is another juicy, very sour lemon. It's a partially because we live in a state where more people are moving in than moving out. It's also partially because there aren't as many homes on the market than there was pre-COVID. These have been big contributing factors to the fast-rising home values over the last year and a half. Here's how I work with your realtor to help make your offer in this seller's market more attractive:

    1. I consult with you about the best home loan options when considering the Florida market you would like to buy in. Some Florida markets are hotter than others, which means one loan option over another may make your offer look more attractive to a seller receiving multiple offers on their home.

    2. I collaborate closely with your realtor. We are partners, both representing you when placing an offer. So, without sharing any proprietary trade secrets (like Tom Cruise in the movie "Top Gun," I would have to say "that's classified," lol), I work very closely with your realtor to make sure your offer is as competitive as possible.


  1. Investors want a piece of the action: This lemon is quite possibly the most sour of the three. Big time investors, like Zillow realty (for example), figured out in the recent past that if they buy homes in Florida, they can either fix and flip for a profit and sell to Florida home buyers, or rent them to new Floridians moving in from other states. The silver lining to this lemon is that investors are giving some much-needed TLC to homes and communities that really need it (there are not many buyers-- or renters-- out there who want to buy a home that needs major renovations or home improvements). The problem with these investors coming into the picture at the present is that it adds more competition to an already very competitive market. Here's how I work with your realtor to gain the edge on competition from investors when you're looking to buy:

    1. Some sellers are more partial to buyers who will live in the home instead of investors looking to rent the property, or fix and flip. I work closely with your realtor to make your offer as powerful and attractive as possible on the lending side.

    2. There are some lenders right now who are offering "same as cash" lending solutions. In some rare cases and niche Florida markets that are seeing a lot of cash offers from investors, this is a possible home loan solution (if you qualify) to make your offer (as someone looking to buy a primary residence) much more competitive.

So, what's the main squeeze from all these factors affecting the state of the Florida housing market and the state of the Florida mortgage industry? Don't wait to buy. With the right recipe (aka, home lending solution), and some expert chefs in the kitchen (aka, your realtor and loan officer), you can buy the perfect home for you and your family right now.


(NMLS #1682906)

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