For many homebuyers, the traditional path to avoiding private mortgage insurance has meant making a down payment of at least 20%. That can create a frustrating choice: wait longer to buy while continuing to build savings, or purchase sooner and accept the added monthly expense of mortgage insurance.
But qualified Florida buyers may now have another option. Team Tina at The Mortgage Firm is excited to offer access to a No Mortgage Insurance Loan Program designed for creditworthy borrowers who want to finance more than 80% of a home’s value without being required to carry private mortgage insurance.
For the right buyer, this program could help preserve more cash, avoid recurring mortgage insurance expenses, and move forward with the purchase of a primary residence sooner.
This is a purchase loan program for qualified borrowers buying a primary residence in Florida. The program permits financing above 80% loan-to-value, up to a maximum of 89.99%, without requiring private mortgage insurance.
The minimum loan amount is $500,000, and the program is available in all Florida counties. Unlike some specialized portfolio programs, an existing banking relationship is not required.
Mortgage insurance generally protects the lender—not the borrower—when a buyer finances more than 80% of the home’s value. Although mortgage insurance can help make homeownership possible with a smaller down payment, it also creates an additional expense that may continue until certain cancellation or loan-to-value requirements are satisfied.
With this program, qualified borrowers can finance above 80% LTV without being required to maintain private mortgage insurance, regardless of the automated underwriting recommendation. That may give buyers an opportunity to:
Every buyer’s financial situation is different, so the potential benefit should be evaluated in the context of the complete loan terms—not mortgage insurance alone.
This program was created for financially established, creditworthy borrowers who want to purchase a Florida primary residence and have the income, credit history, personal funds, and financial reserves required to qualify.
The loan is offered as a 30-year 7/6 SOFR adjustable-rate mortgage with 5/1/5 adjustment caps. Fixed-rate financing is not available through this particular program, and the loan cannot later be converted to a fixed rate under the program terms.
Because this is an adjustable-rate mortgage, Team Tina will explain how the initial rate period, future adjustments, index, margin, and caps work before you decide whether the program is appropriate for you.
Eligible properties may include:
Condominium projects must satisfy the program’s review requirements and be approved as warrantable. Manufactured homes are not eligible.
Additional property restrictions apply. For example, the property must have residential zoning, and commercial or agricultural zoning is not permitted. Three- and four-unit properties, condotels, co-ops, non-warrantable condominiums, construction loans and income-producing properties are also ineligible.
Imagine that you are purchasing a Florida primary residence for $1,000,000. A traditional 20% down payment would require $200,000 before accounting for closing costs and reserves.
At 85% financing, the down payment would be $150,000. Under this program, an otherwise qualified borrower could potentially finance that purchase without monthly private mortgage insurance. That would preserve $50,000 compared with making a 20% down payment.
This is only a simplified illustration. It does not include interest rates, closing costs, reserves, property taxes, homeowners insurance, association expenses, or other loan terms. A complete mortgage analysis is necessary to determine whether the program creates a meaningful overall benefit.
Although the program may allow a smaller down payment than a conventional loan without mortgage insurance, it is not a low-documentation or minimal-qualification program. Borrowers should expect a detailed review of income, assets, employment, credit and reserves.
Depending on the loan amount, required reserves may range from three to nine months of principal, interest, taxes and insurance. Borrowers who already own other property may also be required to document additional reserves.
Funds for the down payment, closing costs and reserves generally must come from acceptable borrower-owned sources. Gift funds, unsecured borrowed funds, cash on hand, future income and anticipated savings are not permitted.
Self-employed borrowers may be eligible, but they should be prepared to provide two years of personal and business tax returns, applicable schedules, current financial statements and other documentation required to analyze the business and qualifying income.
A 20% down payment remains a sound strategy for many buyers—but it is not necessarily the only strategy. For a qualified borrower, preserving a portion of available cash may be more important than placing every possible dollar into the property.
Other buyers may value the ability to purchase sooner, retain stronger reserves, or avoid the separate expense of private mortgage insurance. The most important step is understanding the complete financial picture.
Team Tina can help you compare:
We will help you evaluate the down payment, estimated payment, interest-rate structure, required reserves, and long-term considerations so you can make an informed decision.
Buying a home is too important for assumptions, generic calculators or one-size-fits-all advice. Connect with Team Tina at The Mortgage Firm for a personalized No Mortgage Insurance Program review.
We can help you determine whether the property, requested loan amount, and your financial profile may fit the program—and show you how it compares with your other available financing options.
Contact Team Tina today to request a personalized mortgage consultation and no-obligation program review.
Program availability, qualifications, rates and terms are subject to change. All loans are subject to application, documentation, underwriting, property approval and final credit approval.
Not necessarily. The program allows qualified borrowers to finance above 80% of the property’s value, up to 89.99% LTV, without required private mortgage insurance.
The program guidelines state that mortgage insurance is not required regardless of the loan-to-value ratio or automated underwriting recommendation.
No. The program is available as a 30-year 7/6 SOFR adjustable-rate mortgage. Fixed-rate loans are not offered through this program.
The interest rate is initially fixed for seven years. After the initial period, it may adjust once every six months according to the loan documents, applicable index, margin, and adjustment caps.
The program identifies 5/1/5 caps. In general, these caps limit the first adjustment, each subsequent adjustment, and the maximum lifetime increase. Your Team Tina mortgage professional will review the specific note terms and payment scenarios with you.
No. The program is limited to purchase transactions.
No. The home being financed must be the borrower’s primary residence.
No. The guidelines limit the program to properties located in Florida.
The published minimum credit score is 720.
The maximum DTI is 45%, regardless of the DU or LP automated underwriting feedback.
The minimum loan amount is $500,000. The maximum is based partly on the loan-to-value ratio: up to $3 million at or below 85% LTV and up to $2.5 million above 85% but below 90% LTV.
No. Gift funds and gifts of equity are not permitted. Eligible funds generally must come from acceptable borrower-owned sources.
Potentially. Self-employed applicants must satisfy the program’s income-history and documentation requirements, including the applicable personal and business tax returns and financial documentation.
Eligible warrantable condominium units may qualify, subject to project review and approval. Additional requirements apply to Florida condominium projects, including certain Fannie Mae approval requirements for new or newly converted projects.
No. Manufactured homes are not eligible under this program.
No. Non-occupant co-borrowers and co-signers are not permitted. Every borrower must occupy the home.
Yes. An interior and exterior appraisal is required. For loan amounts above $1 million, the guidelines also require a desk review.
Contact Team Tina for an initial consultation. We will review your purchase goals, estimated price, down payment, credit, income, assets, and property type before discussing the application and underwriting process.
We hope this article was of value to you. For more great tips, bookmark our site and for all your mortgage needs, visit Team Tina at TMFFMS.
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