Perfect Florida Homes

More evidence that the housing market still contains a lot of uncertainties, and not only in Florida: despite price falls which have encouraged buyers, getting that elusive home loan remains a major obstacle:

The price may be right, but if buyers can’t borrow enough, the house isn’t affordable. Difficulty borrowing is keeping many Americans from buying. “The industry went from little or no credit standards to credit standards on steroids,” says Marc Savitt, president of the National Association of Mortgage Brokers.

According to the Federal Reserve Board, about 85% of lenders, worried about falling prices and rising foreclosures, have stiffened requirements for borrowers in the past three months. Those with a credit score of 600 or lower cannot get loans at all, says Keith Gumbinger of HSH Associates, a mortgage information publisher.

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Florida is the No. 1 state for the national flood insurance program, which fills the void left by standard insurance policies that don’t cover damage from rising water. The state accounted for 2.2 million, or 40 percent of the federal program’s policies in 2007. To avoid paying too much for their premiums, homeowners should review their flood insurance polices with their agents to be sure they’re in the right risk category.

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Citizens Property Insurance Corp. is doubling its hurricane mitigation discounts for condo buildings with a replacement cost of $10 million or less as policies renew on Sept. 1. But the action means that Citizens is taking on additional risk, as the state-run insurer already covers more than a third of the state’s condo buildings.

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