That is common for business owners, 1099 workers, consultants, real estate professionals, contractors, restaurant owners, medical professionals, and other borrowers who legally write off business expenses. A bank statement mortgage can sometimes help because the lender reviews business or personal bank deposits instead of relying only on tax-return income.

Bank statement loans are not the same as conventional loans, and they are not right for every borrower. But for the right self-employed buyer or homeowner, they can be the difference between being declined on paper and getting a realistic loan option. If you are buying in Boca Raton or elsewhere in Florida, the smart move is to review this early, before you make an offer or assume one lender’s answer is final.

MJS Financial LLC helps Florida borrowers compare mortgage options, including traditional and alternative-documentation paths. You can start a Boca Raton mortgage pre-approval or call 561-212-0002 to talk through your situation.

What is a bank statement mortgage?

A bank statement mortgage is a loan option where the lender may use a review of bank deposits to estimate qualifying income for a self-employed borrower. Instead of starting with W-2s and standard pay stubs, the lender may review 12 or 24 months of personal or business bank statements.

The point is not to ignore income. The point is to document income in a way that better matches how some self-employed people actually get paid.

For example, a business owner may have strong monthly revenue but show lower taxable income after deductions, depreciation, mileage, payroll, equipment, contractors, or other legitimate expenses. A conventional loan may still work for some borrowers, but if tax-return income is too low, a bank statement program may be worth comparing.

Who should consider a bank statement loan in Florida?

This type of mortgage is usually considered by borrowers who have real cash flow but do not fit cleanly into standard income documentation. Common examples include:

• Self-employed business owners.
• Independent contractors and 1099 workers.
• Real estate agents, consultants, and commissioned professionals.
• Medical, legal, or financial professionals with complex income.
• Restaurant, retail, construction, and service-business owners.
• Borrowers whose tax returns show lower income than their actual deposits suggest.
• Homeowners looking to refinance when tax-return income is not enough.

A bank statement mortgage is usually not the first option to check. A good mortgage review should still compare conventional, FHA, VA, jumbo, DSCR, asset-based, and other possible options when relevant. The right answer depends on the borrower, property, occupancy, down payment, credit, reserves, and timeline.

How bank statement income is usually reviewed

Every lender has its own guidelines, but the review often starts with a simple question: do the deposits support the income needed for the loan?

A lender may review:

• 12 or 24 months of bank statements.
• Personal bank statements, business bank statements, or both.
• Average monthly deposits over the review period.
• Large deposits that need explanation.
• Transfers between accounts so income is not counted twice.
• Business expense factors, depending on the type of business.
• Declining or irregular deposits.
• Cash reserves after closing.

The lender is trying to estimate stable qualifying income. If the deposits are inconsistent, heavily cash-based, hard to trace, or mixed with transfers, the file may need more work.

Personal vs. business bank statements

Some borrowers deposit income into a personal account. Others run everything through a business operating account. Some use both. That distinction matters.

If business bank statements are used, the lender may apply an expense factor to estimate how much of the gross deposits are actually available as borrower income. A business with high revenue but high expenses may qualify differently than a consulting business with lower overhead.

If personal bank statements are used, the lender may look for deposits that appear to represent income rather than transfers, one-time payments, gifts, or account movement. Clean, consistent records make the review easier.

Before you apply, avoid moving money around in a way that makes the paper trail confusing. If you already have multiple business and personal accounts, tell your mortgage broker up front so the right documentation strategy can be reviewed.

Bank statement loan vs. conventional mortgage

A conventional loan is often the better option when the borrower qualifies. Conventional financing may have more predictable pricing, broader availability, and well-established underwriting rules. Fannie Mae’s self-employment guidance, for example, focuses heavily on analyzing stable income from tax returns and business documentation.

That works well when tax returns accurately support the income needed for the mortgage. It can be frustrating when the borrower has strong deposits but lower taxable income.

A bank statement loan may be more flexible for income documentation, but that flexibility can come with tradeoffs. The rate, down payment, reserves, documentation requirements, and closing costs may differ from a standard conventional loan. That is why borrowers should compare options instead of assuming the alternative-documentation loan is automatically better.

If you may qualify traditionally, start there. Review MJS Financial’s conventional loan options and compare the numbers before deciding.

Bank statement mortgage rates and costs

Bank statement mortgage rates in Florida can vary by lender, credit score, down payment, loan amount, property type, occupancy, income documentation, and reserves. In many cases, pricing is different from a standard conventional loan because the documentation and investor guidelines are different.

Do not compare only the advertised rate. Ask about:

• Interest rate.
• Points or lender fees.
• Down payment requirement.
• Reserve requirement.
• Prepayment penalty, if any.
• Whether the loan is fixed-rate or adjustable-rate.
• How the income will be calculated.
• Whether the program fits the property type and occupancy.

The Consumer Financial Protection Bureau recommends comparing Loan Estimates from lenders when choosing a mortgage offer. That matters even more when you are reviewing a non-standard program because the cheapest-looking quote may not be the best fit once fees, terms, and closing certainty are included.

You can start with MJS Financial’s Boca Raton mortgage rates page, but a self-employed borrower usually needs a personalized quote after the income and documentation are reviewed.

Down payment and reserve expectations

Bank statement programs often expect a stronger borrower profile than a basic low-down-payment loan. Exact requirements vary, but lenders may look for:

• A meaningful down payment.
• Good credit history.
• Enough reserves after closing.
• Stable self-employment history.
• Consistent deposits.
• Reasonable debt-to-income profile based on the program’s income calculation.

For a purchase, reserves are especially important because the lender wants to know that the borrower can still handle the payment after closing. For a refinance, equity position and payment history can also matter.

Documents to gather before pre-approval

A cleaner file usually moves faster. Before asking for a serious pre-approval, self-employed borrowers should start gathering:

• Business and personal bank statements for the period requested.
• Recent mortgage statements, if refinancing or owning other property.
• Business license or proof the business exists, if applicable.
• CPA letter or tax preparer contact information, if requested by the lender.
• Profit-and-loss statement, if needed.
• Year-to-date revenue context.
• Asset statements for down payment and reserves.
• Explanation for large deposits or unusual account activity.

You may not need every item for every program. But having the basics ready helps your mortgage broker identify which lenders are realistic and which ones are likely to waste time.

Common mistakes self-employed borrowers make

Many self-employed borrowers wait too long to discuss income documentation. That can create avoidable problems. The most common mistakes include:

• Assuming revenue and qualifying income are the same thing.
• Waiting until after a purchase contract to review bank statement options.
• Mixing business transfers and income deposits without a clear trail.
• Making large unexplained deposits before applying.
• Only asking one bank and stopping after the first decline.
• Comparing rates before the lender has calculated income.
• Forgetting to ask about reserves, points, or prepayment penalties.

The fix is simple: talk through the file early. A 15-minute conversation before you start touring homes can save weeks of frustration later.

Can a bank statement loan be used for a Boca Raton condo?

Possibly, but condo financing adds another layer. The lender may need to approve both the borrower and the condo project. Boca Raton has many condo buildings with association, insurance, assessment, rental, and project-review issues that can affect financing.

If you are self-employed and shopping for condos, mention both issues early: your income documentation and the condo property type. A borrower can look strong while the building creates the harder underwriting question.

Use MJS Financial’s Boca Raton mortgage calculator to estimate payment ranges, but do not treat a calculator result as approval for the borrower or the condo project.

Can investors use bank statements instead of tax returns?

Sometimes, but investors should also compare DSCR loans. A DSCR loan may qualify the property based more on rental income and debt service coverage than the borrower’s personal income. That can be useful for Florida real estate investors, especially when personal tax returns are complicated.

A bank statement mortgage and a DSCR loan solve different problems. A bank statement loan is often about documenting self-employed income. A DSCR loan is usually about financing an investment property based on the property’s rental cash flow. If you are buying or refinancing a rental property, review the MJS Financial DSCR loan page before choosing a path.

Why a mortgage broker helps with bank statement loans

Bank statement lending is not one-size-fits-all. Different lenders may calculate deposits differently, require different down payments, treat expense factors differently, or have different views on property types.

A mortgage broker can help by:

• Reviewing whether a conventional loan is still possible.
• Comparing bank statement programs from multiple lenders.
• Explaining documentation before the file is submitted.
• Identifying likely issues with deposits, reserves, or property type.
• Helping borrowers compare rate, cost, terms, and closing certainty.

That comparison matters. A self-employed borrower does not need a generic answer. They need the right lender for their income pattern, loan amount, property, and timeline.

Official resources worth knowing

These resources help explain why self-employed mortgage documentation can be more detailed than borrowers expect:

• Fannie Mae Selling Guide: underwriting factors and documentation for self-employed borrowers
• CFPB Loan Estimate explainer
• CFPB guidance on comparing mortgage loan offers

These official resources do not replace lender-specific guidelines for bank statement programs, but they explain the broader reason lenders care about stable income and clear loan-cost comparisons.

FAQ

Do bank statement mortgages require tax returns?

Some bank statement programs are designed to reduce or avoid reliance on tax-return income, but requirements vary by lender and loan type. A lender may still ask for business documentation or other proof that supports the income picture.

How many months of bank statements do lenders need?

Many programs review 12 or 24 months of statements. The right option depends on the lender, borrower, business type, deposit consistency, and loan structure.

Are bank statement mortgage rates higher?

They can be higher than standard conventional mortgage rates because the program and documentation are different. Borrowers should compare the full loan terms, not only the rate.

Can I get a bank statement mortgage if I just started my business?

It may be harder. Lenders usually want to see stability. If the business is new, you may need a different strategy or more time before applying.

Can I use a bank statement loan for a refinance?

Yes, some programs may allow purchase, rate-and-term refinance, or cash-out refinance. Requirements vary by lender, equity, credit, property type, and income documentation.

Bottom line

A bank statement mortgage can be a practical option for self-employed Florida borrowers whose tax returns do not tell the full income story. It is not a shortcut, and it is not automatically cheaper than a conventional loan. It is an alternative documentation path that should be compared carefully.

If you are self-employed in Boca Raton or anywhere in Florida, start early. MJS Financial LLC can help you compare conventional, bank statement, DSCR, and other possible loan paths before you make a costly assumption. Call 561-212-0002 or apply for pre-approval online.

Palm Beach County is part of the Miami-Fort Lauderdale-West Palm Beach metro area for FHA loan-limit purposes. The 2026 FHA limits for Palm Beach County are:

• 1-unit property: $667,000
• 2-unit property: $853,900
• 3-unit property: $1,032,150
• 4-unit property: $1,282,700

These limits are based on HUD’s 2026 FHA mortgage-limit data. You can confirm county-specific limits with the official HUD FHA Mortgage Limits lookup tool, and HUD’s 2026 announcement explains that FHA’s nationwide one-unit floor is $541,287 and that higher-cost areas can be above that floor.

If you are buying in Boca Raton and are not sure whether FHA, conventional, or jumbo financing is the better fit, MJS Financial LLC can help you compare options before you write an offer. Call 561-212-0002 or start with a Boca Raton mortgage pre-approval.

What an FHA Loan Limit Means

An FHA loan limit is the maximum base loan amount that FHA will insure for a property in a specific county and property size. It is not the same thing as the purchase price, and it is not a promise that every borrower qualifies up to that amount.

The limit matters because FHA loans are insured by the Federal Housing Administration. Lenders still review credit, income, debts, assets, property type, appraisal, occupancy, and documentation. The county loan limit simply sets the outer boundary for the FHA-insured loan amount.

For a Boca Raton buyer, that means two separate questions need to be answered:

• Does the FHA loan amount fit within the Palm Beach County limit?
• Does the buyer qualify for the payment, down payment, mortgage insurance, debts, and property requirements?

Those are related, but they are not the same.

Why Palm Beach County Has a Higher FHA Limit Than Many Florida Counties

Many Florida counties use the national FHA floor. Palm Beach County is higher because it is in a higher-cost metro area. Boca Raton home prices often sit above the statewide average, especially for single-family homes, newer properties, and homes east of I-95 or near the coast.

A higher county limit helps some buyers use FHA financing in a market where lower limits would not reach many available homes. But the limit does not remove the need for a realistic payment review. Property taxes, insurance, HOA dues, mortgage insurance, and interest rate can all affect the final qualifying payment.

That is why an FHA buyer should not shop based only on the loan-limit number. A buyer can be under the $667,000 one-unit limit and still need to adjust price range because of monthly payment or cash-to-close requirements.

Example: Purchase Price vs. FHA Loan Amount

FHA’s minimum down payment is often 3.5% for eligible borrowers with a qualifying credit score. Because the loan limit applies to the loan amount, not the purchase price, the math can be misunderstood.

For example, a $667,000 FHA base loan amount could support a purchase price above $667,000 if the buyer has enough down payment and the full loan structure fits FHA and lender rules. On the other hand, if the borrower needs to finance more than the county limit, the loan may need a different structure.

The right number depends on the property price, down payment, seller credits, mortgage insurance, closing costs, and the final underwriting details. Use the Boca Raton mortgage calculator for rough payment planning, then confirm the numbers with a lender before relying on them.

When FHA Can Make Sense for Boca Raton Buyers

FHA can be useful when a buyer needs a lower down payment, has a credit profile that does not price well under conventional guidelines, or wants a more flexible qualifying path. It is often considered by first-time buyers, but FHA is not only for first-time buyers.

FHA may be worth reviewing if:

• You want to buy a primary residence in Boca Raton or elsewhere in Palm Beach County.
• You have limited down payment funds but stable income.
• Your credit score or credit history makes conventional pricing less attractive.
• Your debt-to-income ratio needs a lender to compare FHA and conventional guidelines carefully.
• You are deciding between renting longer and buying with a smaller down payment.

For the full local program overview, see MJS Financial’s guide to FHA loans in Boca Raton and Florida.

When Conventional or Jumbo Financing May Fit Better

FHA is not automatically the best option just because it is available. Some Boca Raton buyers are better served by conventional financing, especially if they have stronger credit, more money down, or want to avoid FHA mortgage insurance rules.

Conventional financing may make more sense when:

• The buyer has strong credit and conventional pricing is better.
• The buyer has 20% down or enough equity to avoid monthly private mortgage insurance.
• The property does not fit FHA requirements.
• The loan amount is above the FHA limit but still fits conventional or jumbo options.
• The buyer wants a second home or investment property, since FHA is mainly for primary residences.

For higher-priced Boca Raton homes, jumbo financing may also need to be reviewed. The right answer depends on the buyer profile, property, occupancy, loan amount, and current market pricing.

What Boca Raton Buyers Should Watch Before Relying on FHA

The FHA limit is only one piece of the file. Before assuming FHA will work, buyers should look at several practical issues.

Property Type

Single-family homes are usually the cleanest FHA fit. Condos can require more review because the condo project may need to meet FHA eligibility rules. Boca Raton has many condo communities, so a buyer should raise the condo question early if the target property is not a detached home.

Insurance and Taxes

Florida insurance and property taxes can have a major effect on monthly payment. A loan amount that looks comfortable on paper may feel different after insurance, taxes, HOA dues, and mortgage insurance are included.

Cash to Close

FHA can allow a low down payment, but buyers still need to plan for closing costs, prepaid taxes, prepaid insurance, escrow setup, inspections, appraisal, and possible reserves. Seller credits may help, but they have to be structured correctly.

Credit and Debts

FHA can be more flexible than some conventional options, but lenders still review credit history, monthly debts, employment, and income documentation. A pre-approval should look at the full borrower picture, not just the county limit.

How to Use the 2026 FHA Limit in Your Home Search

If you are shopping in Boca Raton, use the Palm Beach County FHA limit as a starting point, then narrow the search with real payment numbers.

• Confirm whether the property is in Palm Beach County.
• Confirm whether it is a 1-unit, 2-unit, 3-unit, or 4-unit property.
• Estimate your down payment and cash-to-close range.
• Review taxes, insurance, HOA dues, and mortgage insurance.
• Compare FHA against conventional options before making an offer.
• Get pre-approved before relying on any online estimate.

You can also review current Boca Raton mortgage rate information, but remember that your actual rate and payment depend on credit, loan type, down payment, points, property type, and market conditions.

Official FHA Loan-Limit Sources

Because FHA loan limits change each year, buyers should use current sources. The most reliable place to verify a county limit is HUD’s own mortgage-limit lookup. HUD also publishes annual loan-limit guidance for FHA lenders and borrowers.

• HUD FHA Mortgage Limits lookup
• HUD 2026 FHA loan-limit announcement
• HUD FHA single-family lender resources

Those official resources are useful, but they do not replace a file-specific mortgage review. A buyer still needs to confirm loan amount, payment, property eligibility, and documentation.

FAQ

What is the 2026 FHA loan limit for Palm Beach County?

For 2026, the FHA loan limit for a one-unit property in Palm Beach County is $667,000. The limits are $853,900 for two units, $1,032,150 for three units, and $1,282,700 for four units.

Does the FHA loan limit equal my maximum purchase price?

No. The FHA limit applies to the FHA-insured loan amount, not the purchase price. Your purchase price may be higher or lower depending on down payment, closing costs, seller credits, and borrower qualification.

Can I use an FHA loan for a Boca Raton condo?

Possibly, but condo eligibility has to be reviewed. FHA condo rules can be more involved than single-family financing, so buyers should ask about condo project eligibility before making an offer.

Is FHA only for first-time home buyers?

No. FHA is commonly used by first-time buyers, but it is not limited to them. The loan generally needs to be for a primary residence and must meet FHA and lender requirements.

Should I choose FHA or conventional financing?

It depends on your credit, down payment, debts, income, loan amount, property type, and payment goals. A mortgage broker can compare FHA and conventional options side by side so you are not guessing.

Bottom Line

The 2026 Palm Beach County FHA loan limit gives Boca Raton buyers more room than many Florida counties, but it is still only one part of the decision. The real question is whether FHA gives you the best combination of approval path, monthly payment, cash to close, and property fit.

MJS Financial LLC helps Boca Raton and Florida buyers compare FHA, conventional, jumbo, and other home loan options. If you are planning to buy, call 561-212-0002 or request a mortgage pre-approval with MJS Financial before you start relying on listing prices or online estimates.

This article is for general educational purposes only and is not a commitment to lend or personalized mortgage advice. Loan approval, rates, terms, property eligibility, and payment depend on borrower qualifications, property details, lender guidelines, documentation, and market conditions.

That is why condo buyers should talk with a mortgage broker before they fall in love with a unit or write a tight offer. In Boca Raton, many buyers are comparing older buildings, waterfront condos, seasonal-use communities, luxury towers, and association rules that can affect how a lender reviews the property.

MJS Financial LLC helps Boca Raton buyers compare loan options, prepare for pre-approval, and spot condo financing issues early. If you are buying a condo and are not sure whether the building will qualify, call 561-212-0002 or start with a Boca Raton mortgage pre-approval.

What is a non-warrantable condo?

A condo is often called non-warrantable when the project does not meet the eligibility standards for common conventional condo financing. In plain English, the lender is not only reviewing you as the borrower. The lender is also reviewing the condo project.

Fannie Mae explains that condo and co-op projects have additional requirements because owners share financial obligations for the building, common areas, insurance, reserves, and amenities. If a project does not meet Fannie Mae’s Selling Guide requirements, loans secured by units in that project may not be eligible for sale to Fannie Mae until the underlying issue is resolved.

That does not automatically mean the condo is bad or that no financing exists. It means the loan may need a different path, a different lender, a larger down payment, different pricing, or more documentation.

Why Boca Raton condo buyers run into warrantability issues

Boca Raton has a wide mix of condo properties. Some are newer luxury buildings. Some are older coastal or near-coastal communities. Some have seasonal residents, investor ownership, special assessments, major insurance considerations, or association rules that matter to lenders.

The problem is that many buyers start by looking at the unit: view, floor plan, price, HOA fee, parking, amenities, and location. A lender has to look deeper. The project review may include the association budget, insurance coverage, pending litigation, occupancy mix, commercial space, reserves, special assessments, structural repairs, and whether the project has characteristics that make it ineligible for standard financing.

That review can affect a purchase even when the buyer has strong credit, income, assets, and a good down payment.

Common reasons a condo may be non-warrantable

Every loan program and lender is different, but these are common issues that can cause trouble during condo financing.

Insurance problems

Condo projects need adequate master insurance coverage. In Florida, this has become a bigger conversation because insurance costs and coverage terms can be difficult for associations. Fannie Mae lists inadequate insurance as one common reason a project may not meet its requirements.

For a buyer, this can show up late if the association or management company does not provide complete insurance documents quickly. It is better to find out early whether the master policy may be a concern.

Critical repairs or deferred maintenance

Lenders may look closely at building condition, inspection issues, major repairs, and whether the project has significant deferred maintenance. Fannie Mae identifies critical repair issues, including failure to meet state or local inspection requirements, as one of the common reasons projects can receive an ineligible status.

This does not mean every older building is a problem. It means documentation matters. The lender may need to understand what repairs are required, whether they affect safety or habitability, how they are funded, and whether the work is complete.

Pending significant litigation

Some associations are involved in lawsuits. Not all litigation has the same effect, but significant litigation can create a financing roadblock. The details matter: what the lawsuit is about, the potential financial exposure, whether insurance is involved, and whether it affects safety, structure, habitability, or the association’s finances.

Short-term rental or condotel characteristics

Some condo projects operate more like hotels or short-term rental properties. Fannie Mae notes that projects operating as a hotel or motel, or managing daily or short-term rentals, can be ineligible. That can matter in South Florida communities where rental flexibility is part of the appeal.

If you plan to rent the unit, tell your mortgage broker early. The occupancy plan can affect both borrower qualification and project review.

Budget, reserves, delinquencies, and association finances

The lender may review whether the association budget is stable, whether reserves are being funded, whether many owners are behind on dues, and whether special assessments are planned or active. These items help the lender understand whether the association can maintain the project and manage shared obligations.

Investor concentration or ownership structure

Some projects have a high percentage of investor-owned units, a single owner with many units, or commercial-use elements that need more review. Depending on the project and loan program, these issues may affect eligibility.

Can you still get financing for a non-warrantable condo?

Often, yes, but the loan may not look like a standard conventional condo loan. Options can vary by buyer, property, down payment, occupancy, association documents, credit profile, and lender appetite.

Possible paths may include:

• A lender that offers portfolio condo financing.
• A non-QM or specialty condo loan.
• A larger down payment to reduce the lender’s risk.
• Different pricing or reserve requirements.
• Additional association documentation.
• Waiting until the association resolves a specific issue.

The key is not to assume the first denial is the final answer. A bank may only offer one path. A mortgage broker can compare multiple lenders and look for a structure that fits the condo, the borrower, and the transaction.

What buyers should ask before making an offer

Before you write an offer on a Boca Raton condo, ask questions that can expose financing issues early.

• Is the condo project currently approved for the loan type you want?
• Has the association had any recent issues with Fannie Mae, Freddie Mac, FHA, VA, or lender project reviews?
• Are there active special assessments?
• Are there major repairs, milestone inspections, structural reports, or deferred maintenance items?
• Does the association have pending litigation?
• Is the master insurance policy current and complete?
• Are short-term rentals allowed, restricted, or actively managed by the project?
• How quickly can the association or management company provide the condo questionnaire, budget, insurance, and other documents?

You do not need to become a condo underwriting expert. You just need the right professionals asking these questions before the financing timeline gets tight.

Why pre-approval should mention the condo early

A basic pre-approval may review your income, credit, assets, debts, and down payment. That is important, but it is only half of the condo financing picture. If you are shopping specifically for condos, your mortgage conversation should include the type of condo, likely price range, occupancy plan, loan program, and any building concerns.

That way, your mortgage broker can explain what may need to be reviewed once you have a property address. It can also help you avoid making an offer with unrealistic financing assumptions.

If you are still comparing loan programs, review MJS Financial’s pages on conventional loans, FHA loans in Boca Raton and Florida, and Boca Raton mortgage rates. Your best option depends on both your qualifications and the condo project.

How a mortgage broker helps with a difficult condo

Non-warrantable condo financing is not just about finding a lender with a product sheet. It is about understanding why the project is hard to finance and matching the situation to the right lender.

A mortgage broker can help by:

• Reviewing your borrower profile before the property review starts.
• Explaining which documents may be needed from the association.
• Comparing lenders that may handle different condo project issues.
• Helping you understand tradeoffs in rate, down payment, timing, and documentation.
• Coordinating with the real estate agent so financing concerns are addressed early.

This is especially useful in Boca Raton because two condos at similar prices can have very different financing profiles.

Buyer checklist for a Boca Raton condo purchase

Use this checklist before you get too deep into a condo contract:

• Get pre-approved before touring seriously.
• Tell your mortgage broker you are shopping for a condo.
• Ask whether the building has known financing concerns.
• Request association documents as early as the contract allows.
• Review HOA dues, assessments, insurance, and rental rules.
• Compare standard conventional, FHA, portfolio, and specialty options when needed.
• Use a realistic financing timeline if project review may be required.

You can also use the Boca Raton mortgage calculator to estimate payment ranges before you compare loan structures, but remember that calculator estimates do not confirm condo project eligibility.

Official condo project resources

For buyers who want to understand why lenders ask these questions, these official resources are useful starting points:

• Fannie Mae Condo Status Finder and condo eligibility overview
• Fannie Mae Selling Guide property eligibility overview
• Freddie Mac Condo Project Advisor overview

These sources are not a substitute for lender review, but they explain why condo financing can involve more than the unit appraisal and the buyer’s personal qualifications.

FAQ

Is a non-warrantable condo a bad condo?

Not always. Non-warrantable means the project may not meet certain standard financing requirements. The issue could be insurance, litigation, repairs, rental rules, investor concentration, association finances, or another project-review item. The condo may still be financeable through a different lender or loan structure.

Can I use an FHA loan for a Boca Raton condo?

Possibly, but the condo project and the borrower both have to fit FHA requirements. Some condo projects are not eligible for FHA financing, and some may require additional review. If FHA is your preferred path, raise that before making an offer.

Do non-warrantable condo loans require more money down?

They can. Some specialty or portfolio lenders may require a larger down payment, stronger reserves, or different pricing. The exact requirement depends on the lender, borrower, property, occupancy, and project issue.

Can a condo become warrantable again?

Yes, in some cases. If the association resolves the issue that caused the problem, such as documentation, insurance, repairs, or litigation, the project may become easier to finance later. Timing and documentation matter.

Should I get pre-approved before choosing a condo building?

Yes. Pre-approval helps you understand your borrower qualifications, but for condos you should also discuss project review risk. That can save time and help you write a cleaner offer.

Bottom line

Non-warrantable condo loans in Boca Raton are not automatically a dead end, but they do require more careful planning. The earlier you identify the project issue, the better your chances of finding a workable loan path or deciding that the building is not the right fit.

MJS Financial LLC helps Boca Raton condo buyers compare mortgage options before financing problems become contract problems. Call 561-212-0002 or get pre-approved with MJS Financial to talk through your condo purchase.

Did you know 1 out of 5 houses in Florida are in a special flood zone. Let’s say you have been working hard looking at all the houses in an area and you finally find the perfect one. Amazing front, beautiful paint, huge backyard everything you could ever want but shortly after putting in an offer the real estate agent tells you the house is in flood zone v. What does that mean? Is this going to cost you more money?

Here in Boca Raton flooding is a constant issue since we live so close to the beach and can get hit hard with hurricane rains. In this article, I will go over the different types of flood zones and how they can impact your home buying process. Along with some pros and cons of buying in a flood zone.

Flood Zone Letter Codes

There are different codes to distinguish the risk of flooding in the area. If you look at a list it goes on and on with a bunch of different letter combinations but here is the easy break down to understand what letters mean what. Looking at the first letter of the letter combination should tell you imminently if you are ina high risk, moderate, or minimal risk area.

Being in the high-risk zone requires you to have flood insurance with your mortgage since there is a 1-percent annual chance of flooding. Moderate risk areas have a 0.2-percent-annual-chance of flooding. Minimal risk areas are like moderate risk areas but are higher in elevation. To know which zone a house is in you can contact the zoning department of a city or go online to the FEMA website.

Pros and Cons Of Buying In A Flood Zone

It is important to note that flood zones change every year and just because your house is not in a flood zone means there are zero risks. A perfect example is when hurricane Harvey hit Houston and a lot of houses that were not in flood zones getting damaged with many homeowners not having flood insurance.

Flood Insurance And Mortgages

If you looking to buy a house in a flood zone A or V, aka the high-risk areas, and are trying to get a mortgage with Fannie Mae, Freddie Mac, FHA, USDA, or VA loan, basically any government-related lender, you are required to get flood insurance. The most conman program is The National Flood Insurance Program (NFIP) which was made by FEMA. This cost around $708 a year. You can go private but those rates vary and the policy has to be approved by the lender you are trying to get the mortgage with.

Buying In A Flood Zone

Before committing to buying the house take some time and speak with the current owner, real estate agent, or any friends and family you might have that live in a flood zone.

Speak with the homeowner and see how long they have been living there, what insurance do they have, and what storms or events cause any damage if any. Speak to your real estate agent they see so many houses per day that they have almost seen it all. They should be able to tell you based on location what risks are present and how often it might flood based on the bodies of water nearby. Lastly speaking with friends and families who live in flood zones to get their opinions if they think it’s a big risk or if they do not mind living in that area.

If you live in Boca Raton, or anywhere in Florida, you might be considering a cash-out refinance. Why not? rates are low, the property value is increasing and you can use the extra cash. For some, it is a great move and for some, it might not be. In this post, I will go over what cash-out refinance is and some pros and cons about them. If you are a Boca Raton homeowner who wants to learn more about cash-out refinance, click or call and we will be happy to discuss your options.

What Is A Cash Out Refinance?

For all my Boca Raton Floridians who already know what a cash-out refinance is I’m sorry but let me catch everyone else up to speed. In short, you have the existing mortgage that has you have been paying off the month by month and you have your house that has value. What you can do with a cash out refinance is borrow up to 80% of your home value into cash, pay off the first mortgage, and whatever is leftover you can keep.

Let’s go into the best scenario where a cash-out refinance in Boca Raton makes total sense. If you have been living in your home for over seven years and the value of your home has increased a good amount. At the same time, you were thinking about remodeling the kitchen but you don’t want to spend that money out of pocket. A cash-out refinance makes perfect sense. To read more about cash out refinance I suggest reading the Investopedia page about it, it goes very in-depth.

How To Know If My Boca Raton Home’s Value Increased?

At the end of the day, the bank will require an official appraisal to be done to determine the value of the home. There are some ways to give you an idea of the value of your home. Firstly how long ago did you buy it and for how much? This is a good starting point as it gives you a baseline value of your home. Secondly, check out appraisal estimate sites, these give you a good idea of what the range can be but it is important not to take these so seriously. We have a tool on our page powered by Zillow to help you out with this.

Lastly and the hardest method involves math. Keep an eye out for houses like yours in the area that sell and see what they are asking for and what they sell for, you can check on the county records, have a good list of similar properties you can take the average and found the current market rate for a house like yours.

Pros & Cons Of Cash Out Refinance

Pro:

• Availability of extra cash
• Can use the cash however you want
• Can Refinance into a lower rate

Cons:

• New terms ( potentially going back to 30 years)
• The monthly interest rate can increase
• Paying closing costs for the new loan can be 5%-6% of the loan amount

What To Do With Your Cash Out Refinance

With the money you get from your cash out you can really do whatever you want with it besides buying more property as that might not go well with the bank.The two best things we suggest doing with the cash from a cash out refinance is adding value to the home and debt consolidation.

Adding value to the house can increase the value for future sells and make your day to day living more comfortable in the house. A lot of the older Boca Raton houses are overdone for a makeover since they were built in the sixties or seventies. A new kitchen, hardwood floor, or a pool remodel can increase the value and make it much nicer to be in. Second, debt consolidation can be used if you have a large amount of student debt or credit card debt you want to pay off. Overall it is a great time to refinance.

Purchasing a home is a big step if you are not paying all cash you will need to go through the mortgage loan process. This involves a lot of phone calls and emails. Back and forth with a number of professionals that in the end help you get inside your dream home.

1. Find A Homes

This is where your journey begins. Finding the home you want to spend the next thirty plus years in. Note you do not need to stay in the home for that long you can sell it two years later and pay off the mortgage if you want. But you still need to find a home Zillow is a great tool for this. This involves looking into neighborhoods, schools, stores, parks, etc to find where and what you can afford. Here is where you make your budget and decide how much you want to put down on the house.

Everyone is different but if you can we recommend at least 20%. That will save you from extra monthly fees for MIP or PMI.

2. Find A Mortgage Broker

Find a mortgage broker this will help you get pre-approved and get the loan that will pay for the majority of the house. Guess what, we are a mortgage brokerage so if you looking for a mortgage broker in the Florida area call the number on the top of the page and we will be happy to help you. If not in the Florida area, ask friends, coworkers, or family for a suggestion on a good mortgage broker. You want a good one that understands the mortgage loan process and can get you good terms from a lender. Asking your real estate agent is also a good source since they might know a lot of professionals in the area.

3. Get Pre-Approved

This step is easy and kind of goes into step 2. Ones you have your mortgage broker and find a couple of houses you are interested in you can get pre-approved. This involves answering some basic questions about yourself. This does involve pulling your credit so be mindful of that. Ones you have your pre-approval letter this shows home sellers you qualify for a loan and are a serious buyer. Some home sellers will not talk to a buyer without a pre-approval so it helps you build ground with sellers.

4. Make An Offer

With your new pre-approval letter, you can start making offers on homes. This is where you go through the list of houses you found in step one that fits you and your budget and starts ranking them from best to worst. Then you can start putting in offers to buy the house. If the seller accepts you will start the sales contract. It is super important to read the sales contract and if you have any questions reach out to your mortgage broker, real estate agent, or family and friends on their opinion. The last thing you want is some toxic clause in a sales contract that bites you in the butt 2 months later.

5. Complete The Loan Application

You might have thought you finished the mortgage application at the pre-approval but that was just the start. Using that information along with the new information you provide to your mortgage broker you will fill out 1003. Things about your past and president’s job, liabilities, income, assets, family, and more will be documented and filled out in 1003. It doesn’t take long and some people say it the real start on the mortgage loan process. Here you will get a loan estimate which estimates your monthly payment and estimates how much closing cost is going to be.

6. Processing The Loan Application

Here the broker will use your 1003 and ask for necessary documentation to verify what you claimed on 1003. This varies for every borrower but some are constant like a copy of your driver’s license, bank statements, copy of the purchase contract, etc. This step can be long or short depending on the borrower and their organization.

7. Underwriting The Loan Application

This is the final stretch of the mortgage loan process. The mortgage broker sends the file and all the documents to a lender which reviews it and decides if it qualifies for their program. Many times the file can sit for weeks in underwriting and some additional documents may be asked to further verify the information. The mortgage broker is here to help explain the banking jargon and send the documents.

8. Close On Your Loan

The date is here, the date outlined in the sales contract from long ago is finally here. By now the underwriters should have approved you and you should have received the closing disclosures outlining everything on the cost and payments you will make. This disclosure is the last one so double check it for any errors before signing. On the day of closing you, seller, agents, brokers and other professionals will come together to sign the final documents to move ownership of the home to you. Congrats! you have completed the mortgage loan process.

Kosher restaurants in Boca Raton are not hard to come by. As the years go on more and more kosher restaurants open up in the Boca Raton area. Here is our list of kosher restaurants in Boca Raton if you are visiting town or looking for a new place. Boca Raton has a wide selection of kosher restaurants from pizza to Chinese and everyone’s favorite falafel and shawarma. Please check with the restaurants to make sure their kosher certification is still valid and up to date. A good tool is totallyJewishtravel. This list is in no specific order and updated last on 9/21/20. If we are missing your favorite Boca Raton kosher restaurant email us at ben@mjslending.com so we can add it to the list.

Jon’s Place

Chill & Grill Pita

Boca Grill

Orchids Garden

Jerusalem Grill

Grove Kosher Market

Aroma Market

Winn-Dixie

Menchie’s Frozen Yogurt

CEK Caterers

Ditmas Kitchen Boca

Pita Pan Bakery

Carvel

Cinnaholic

Chefness

Lox n Bagel

Maoz Vegetarian

Roadhouse Boca

Carmela’s

Rave Pizza & Sushi

An age-old question is which is better to buy vs rent a house in Florida. Both sides do have their pros and cons. If you are planning to move to the sunshine state here are some advantages and disadvantages of buying or renting a home. Everyone is different and everyone has different needs and abilities. This makes the answer more complicated but hopefully, this article can help you make a decision. Nether renting or buying is better they both have their strength it is just a matter of figuring out what works for you. If you do choose to buy here is a good post about the pre-approval process.

Should I Buy VS Rent A House

Firstly break down your needs and wants. This will help you narrow down if you fit in either the buying or renting category. Things to consider are

1. How long you plan to stay in the area: If you plan to stay in the same area for more than five or seven years you should buy it. Renting is more short term and if you are in the same home for those years all that rent money could have gone towards a mortgage.
2. Do you like stability or flexibility? Buying is a commitment and if you like flexibility then buying is not the way. Renting allows you to move in and depending on the contract move out quickly if you do not like it. Renting allows you to see more of the area from different neighborhoods.
3. What can you afford? Buying requires much more capital and credit than renting and is something not everyone can just do. Many times people start renting for two or so years than try to get a mortgage. This also ties into the first question on how long do you plan to stay in the area.
4. What is your roommate or family plans? Renting is a great way to also meet new people through roommates. But if you are planning to start a family, buying a home can give you room to grow and more stability. Again this ties into question one and time.

Takeaway: In short it is all about time a good rule is renting is short term and buying is long term when it comes to buy vs rent a house.

Pros And Cons Of Buying A House

Pros:

• Greater privacy, When buying you become the owner and the only allowed person on the property unlike renting.
• Long term investment, Property values generally increase over time and can be a good investment in some areas.
• Building equity, A house can be a huge aspect of equity.
• Room to grow, Owning a house allows you to make necessary renovations on the property as you see fit.
• Having Pets, Some rental properties do not allow pets of any kind.
• Stability, If you have a fixed mortgage you know what the payments will be.
• Building credit, As you pay your mortgage you are building credit.

Cons:

• HOA dues, depending on the neighborhood there might be HOA dues.
• Unexpected maintenance, Things can break unexpectedly and you need to pay for it.
• Lawn care, If you have HOA dues than there are lawn requirements on how your lawn must look.
• Less mobile, If you want to move you need to sell the house or find a tenant.
• Taxes and insurance, extra costs you need to pay for.

Pros And Cons Of Renting A House

Pros:

• Easy to move in, Renting a house is much easier than buying a house.
• Easy to move out, Depending on your contract you can stay as short or long as your landlord allows.
• No repair costs, It is not your property so you don’t need to do maintenance.
• No HOA dues, Again you do not own the property so you do not need to pay dues. Some rent might go towards that but it’s not your responsibility.
• Rent might be cheaper than a mortgage

Cons:

• No credit score improvements, You are not gaining credit from paying your rent each month.
• Rent might go up, the landlord can increase rent unexpectedly. Check out this article talking about raising rent prices.
• You can not change the property, You will need the owner’s permission.
• The property might feel dated, the owner might not make cosmetic repairs so the house can feel dated.

Buying A House In Boca Raton

Boca Raton is where our main office is located and where we do most of our business. If you are still not sure about if you should buy vs rent a house in Florida read our Boca Raton page where you can see the perks of living in Boca Raton.

An appraisal is an independent third party that looks at a home and gives a fair market value based on numerous factors about the property. Of course, these are professionals are taking time out of their day to come and look at a house for hours so how much does an appraisal cost? The short answer around $400. At such a high price some people ask are appraisals even necessary to buy a home? Housing wire did a great article about that found here asking the same question. At the end of the day, the appraisal is just another bill on the long list of closings costs.

Why Do I Need An Appraisal To Buy A Home

When a seller is putting his home up for sale they have an asking price which is what the seller believes the home is worth. While this can be accurate sometimes sellers get emotionally attached to the property and have a blind eye to what the real value is. This is where an appraisal comes in an independent party takes a look at the home and its features and using multiple tactics can figure our a fair market value depending on the area.

Also if you plan to get a mortgage for the property the lender is not going to take the sellers word on the value and want a professional for their opinion. It is important to know that the lender will only lend you the lesser of the two. For example, if the seller is asking $235,000 and the appraisal is $220,000 the lender is only going to lend you a max of $220,000 meaning the seller either needs to come down on their price or you need to bring the extra $15,000 out of pocket. Here is some news about appraisals being delayed by some banks so stay on top of your current buying situation.

FAQ About The Appraisal Cost

Who Pays The Appraisal Fee

Nine times out of ten the buyer pays the appraisal fee. While nothing is stopping the seller or lender from paying the cost and you can get credit that can pay off the appraisal cost but majority time the buyer pays.

When Do You Pay The Appraisal Fee

The appraisal fee can be paid on order but most times the fee is lumped into the closing cost. This is to not annoy the buyer since they are a lot of fees and costs when buying a home that troubling them every time a fee is incurred might be annoying.

Who Orders The Appraisal

The lender and the mortgage broker order the appraisal through a licensed and trusted party. Then they will send a licensed agent to the home to find fair market value.

How To Find An Estimate Before an Appraisal

There are a lot of good tools out there giving free home price estimates based on selling prices of homes nearby. Zillow is a popular one but it should be noted that these are not a licensed appraiser and can be wrong. So use them at your own discretion but they are still a great tool if you starting from nothing.

How Much Does an Appraisal Cost In Florida

Since it is an independent third party it is hard to put an exact dollar amount on the cost of an appraisal. Most times each lender has its own apprisal company they want the home to be appraised by. The appraisal usually costs somewhere between $350 -$500. This is for someone to come out and give a look at the property to determine its market value. Note the appraiser is not an inspector and will he might note physical damage he can not say for certain if the damage is putting the property at risk. It can lower the appraisal value of the home to have physical damage.

Closing costs are the cost of doing a real estate transaction. Lender, title, insurance, and mortgage broker, fees are included in closing costs and can be found in the closing disclosure. Generally closing costs can be around 3% to 6% of the sales price of the home. Closing costs are mostly the same for any state in the United States. In Florida, the three taxes that are in the closing costs are intangible tax, state tax, and deed tax. Before you worry about how much and who you might need to pay know that the lender is required to give you a loan estimate which includes in it the closing costs and their estimates.

Even when you are just shopping a rate you can ask the broker or lender for a copy of a fee sheet. They will tell you that it is just an estimate but this will give you a better idea of who and what you need to pay.

Types Of Closing Costs

Closing costs can be broken down into different categories. This is an example of what you might be included in closings cost and does not reflect what we here at MJS charge but is what is widely used. Depending on your loan product less or more cost might be incurred. Investopedia has a great article explaining some of these costs.

• Orientation Charges
  • Application fee
  • Underwriting fee
• Services You Cannot Shop For
  • Appraisal fee
  • Credit report fee
  • Flood determination fee
  • Flood monitoring fee
  • Tax monitoring fee
  • Tax status research fee
• Services You Can Shop For
  • Pest inspection fee
  • Survey Fee
  • Title-insurance binder
  • Title- lenders title policy
  • Title- settlement agent fee
  • Title search
• Taxes and Other Government Fees
  • Recording fees and other taxes
  • Transfer taxes
• Prepaids
  • Homeowners insurance premium
  • Mortgage insurance premium
  • Prepaid interest
  • Property taxes
• Initial Escrow Payment At Closing
  • Homeowner Insurance
  • Mortgage Insurance
  • Property tax
• Other

One thing to note is that this list is for a purchase of a home that can have some of the most closings costs associated with the transaction. Refinances on the other hand can have some of the least amounts of closing costs. Things like appraisals can be waived on a refinance since the borrower already lives in the home or depending on the lender they might already own the loan.

Who Pays Closing Costs?

While this might be a simple answer the borrower does, they are the ones buying the house. While yes the borrower does pay a good portion of the closing cost many times the seller or lender will pay some of the closing cost or offer credit to pay off some costs. If the home has some issues but the seller doesn’t want to spend time fixing them they might offer to pay some of the closing costs to offset the issues with the home. If the borrower wants to accept a slightly higher interest rate they can receive some credit to pay off the closing cost. Another strategy is to speak to your broker and see if you can include some closing cost in the loan. This might be risky because it raises your loan amount which might be hard in a close loan to value situation.

When Are Closing Costs Due

After receiving the closing disclosure from your lender outlining what is included in closing costs, closing costs are due the day of closing. They are due once you sign the loan documentation and commit to the loan. Then the money can be transferred via money wire or with a cashiers check. By closing day you should already be fully aware of what’s included in the closing costs and exactly how much it is.