There is much speculation as to whether the best Orlando interest rates and Orlando home prices are going to be around 12-months from now. It is no secret that many of the recent steps taken by our government are highly inflationary.

The question on everyones mind is - what does that mean for me and my home buying ambitions? The question that is less well-known yet equally important is whether the current qualification guidelines are going to be the same 12-months from now.

As Florida’s #1 FHA Mortgage Broker, I would speculate no. Experience shows that inclination would be accurate… here is why. Mortgage guidelines, specifically FHA mortgage home loan guidelines rend to be a lagging indicator of mortgage defaults. In other words, as mortgage default continue to increase, guidelines will continue to be more restrictive.

So, while low Orlando interest rates may be available a year from now and Orlando real estate may still be reasonable, qualifying for a loan to buy that real estate may be harder. We have already seen many lenders apply strict guidelines on credit scores even though officially FHA home loans do not have credit score requirement.

For example, many lenders used to allow 580 scores. That number then increased to 600. Now all but one wholesaler I know of has moved to a minimum of 620 - that sole wholesaler is at 600 but expect that they follow suit in relatively short order.

The obvious question arises - “Where will the requirement be next year?” If you have a credit score over 700, you will be okay, but those with less than a 700 score may find that they are - unexpectedly - in need of Orlando credit repair in order to qualify for ANY FHA mortgage loans. The best bet is to get a mortgage pre-qualification now and get expert advice from a trusted Certified Mortgage Planning Specialist [CMPS]. Waiting could be the difference between being an Orlando home owner and being a renter for who knows how long!?

For unconditional yet sound mortgage advice, contact me to see where you fall in the current environment and if you are benefited by acting sooner rather than later.