Florida Top For Buyers Using PMI
Florida made the top 5 again, but this list isn’t as glamorous as a “Best Beach or “Great Golf” ranking. Yes, Florida is the number two state in the country for homebuyers using PMI, private mortgage insurance. Texas topped this list, which was recently released by the association, U.S. Mortgage Insurers, while California, Illinois and Ohio rounded out the top five. The report found that nearly 60% of those purchasing homes in Florida in 2022 used PMI, allowing for down payments as low as 3%. The report noted that the average Floridian using PMI had a median household income of just under $60,000, while the median price of the home being purchased was more than $420,000. Under these conditions, the report found that without PMI, an average Florida home buyer would need 45 years to save for a 20% down payment and 16 years to save for just a 5% deposit. With so many of these homebuyers relying on PMI and having low down payments, it comes as no surprise that nearly 62% of these mortgages went to first-time purchasers.
So what does this all mean? Well, as we have discussed before, buyers are flocking to Florida. This increased demand has increased average sale prices across the state and made homes less affordable for locals. Now, with even higher interest rates, mortgage payments that include PMI may become unaffordable and stifle sales for young and first-time buyers. If you have questions about your first home purchase or if you would like to speak with a local lender, please contact us. We are here to help!