Watson Realty Corp. Realtors®

(407) 702-8980

Mortgage Guidelines

Mortgage Guideline Quick Reference

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Conventional

  • First Time Home Buyers: as low as a 3% down payment (Primary residence). Maximum income limitations apply.
  • 5% minimum down payment (Primary residence)
  • 10% minimum down payment on Second Home, 15% minimum down payment on Investment
  • Maximum loan amount of $453,100
  • Minimum credit Score of 620
  • Primary residence, Second Home, and Investment Property
  • Monthly Mortgage Insurance is required with down payments of less than 20% (No MI programs are available)
  • Gifts from acceptable sources are allowed, except for Investment transactions
  • Maximum seller concessions towards the buyer's closing costs and pre-paids: 3% if LTV is greater than 90%, 6% if LTV is between 75.01% and 90%, and 9% if the LTV is less than 75%. A maximum of 2% is allowed on all Investment transactions
  • Appraisal: Good for 120 days
  • Septic Inspection: Required if the appraiser notes it on the appraisal
  • Well Inspection: Required if the appraiser notes it on the appraisal
  • Survey: Good for 10 years if no changes were made to the property.
  • Roof: The roof must be considered to be water tight. There is no specific life expectancy required.
  • Termite: Not required unless noted on appraisal – Good for 90 days
  • Refinance: CONV 80% LTV  maximum cash out allowed; CONV 75% LTV maximum cash out allowed on investment; CONV 70% LTV  maximum cash out allowed on 2-4 units on investment

VA

  • 100% financing with purchase prices of up to $453,100
  • Max loan amount of $1 million, with required downpayment of 25% of the amount over $453,100
  • Minimum credit Score of 580
  • Primary residence only
  • An eligible VA borrower may have multiple VA loans, depending on their remaining eligibility. Ask Your Watson Mortgage Loan Originator for more details.
  • Requires sufficient VA eligibility
  • Gifts from acceptable sources are allowed
  • 4% Maximum seller concessions towards the buyer's closing costs and pre-paids
  • Appraisal: Good for 180 days and stays with property for six 180 days
  • Septic Inspection: Required if the appraiser notes it on the appraisal. If the local municipality requires hook up, it must be connected regardless of the cost.
  • Well Inspection: A water test is required. We can accept a letter from the county Health Department stating the water meets the requirements for that local health authority. If the local health department has no requirements, we must default to EPA Guidelines and we will always need bacteriological and 5 metal testing. (Lead, Nitrate, Nitrite, Ecoli and Coliform)
  • Survey: Good for 10 years if no changes were made to the property.
  • Roof: Remaining life expectance must be 5 years.
  • Termite: Clear WDO (good for 60 days)
  • Refinance: VA 100% maximum cash out allowed with a 640 credit score

FHA

  • 3.5% Down Payment with minimum score of 580
  • Maximum loan amounts vary by county (Loans up to $343,850 in Duval / Clay / St Johns)
  • Up Front Mortgage Insurance Premium of 1.75% will be added to the loan amount
  • Monthly Mortgage Insurance Premium of 0.85% applies (0.80% with 5%+ down), and is for the life of the loan
  • Primary residence only
  • Gifts from acceptable sources are allowed
  • A borrower may only have 1 FHA loan, except in certain circumstances
  • 6% Maximum seller concessions towards the buyer's closing costs and pre-paids
  • Appraisal: Good for 120 days and stays with property for 120 days. A 2nd appraisal may be required and must be paid for by the seller, if the seller has been on title less than 180 days, The Seller must have been on title at least 90 days.
  • Septic Inspection: Required if the appraiser notes it on the appraisal. If public water or sewage is available, it must be connected (if feasible) at a cost of 3% or less of value.
  • Well Inspection: Required if the appraiser notes it on the appraisal, in which case a water test is required. If the local health department has no requirements, we must default to EPA Guidelines and we will always need bacteriological and 5 metal testing.
  • Survey: Good for 10 years if no changes were made to the property. Must show the following: Septic to be 50 feet away from well. Drain-field to be 100 feet away from well. Well to be 10 feet away from the property line.
  • Roof: Remaining life expectance must be 2 years.
  • Termite: Not required unless noted on appraisal – Good for 90 days
  • Refinance: FHA 85% maximum cash out allowed

USDA

  • 100% financing only in certain areas of the state. Check property address at below site: United States Department of Agriculture
  • 640 minimum credit score
  • Cannot own another home except in rare circumstances
  • A Guarantee Fee of 1% is added to the loan amount, and also requires an Annual Fee of .35% (paid monthly for the life of loan)
  • Closing Costs: Can roll in closing costs up to 102%, if the appraisal supports value
  • Maximum Household Income Limits apply. Maximum Debt to Income ratios of 29/41%
  • Appraisal: Good for 120 days, unless new construction, then 1 year (expiration date and conditions will be on “Statement of Appraised Value”).
  • Septic Inspection: Required if the appraiser notes it on the appraisal. If public water or sewage is available, it must be connected (if feasible) at a cost of 3% or less of value.
  • Well Inspection: Required if the appraiser notes it on the appraisal, in which case a water test is required. If the local health department has no requirements, we must default to EPA Guidelines and we will always need bacteriological and 5 metal testing.
  • Survey: Good for 10 years if no changes were made to the property. Must show the following: Septic to be 50 feet away from well. Drain-field to be 100 feet away from well. Well to be 10 feet away from the property line.
  • Roof: Life expectancy must be 2 years.
  • Termite: Not required unless noted on appraisal – Good for 90 days.
  • Up to 90% LTV on Loan Amounts up to $850,000
  • Minimum 680 Credit Score
  • Requires 43% max debt ratio and 6 months reserves