3 Big Things You Need to Know: Mortgage Rates, Non-QM Loans, and Florida Tax Relief

Mortgage Rates Are Improving, Non-QM Loans Are Expanding Options, and Florida Tax Relief May Be Coming

There are three major developments real estate professionals and homebuyers should be paying attention to right now. First, mortgage rates are showing signs of improvement. Second, Non-QM loans options are creating more opportunities to get buyers into homes. Finally, Florida lawmakers are continuing to discuss property tax relief measures that could greatly improve affordability.

Here is what that means for the market and why it matters.

Mortgage Rates Show Signs of Improvement

After a period of volatility in the market, the bond market delivered a much better week recently, and that is helping mortgage interest rates move in a more positive direction. We are already starting to see attractive mortgage rates compared to recent peaks.

Are they where we want them to be yet? No, not quite yet. But the improvement is encouraging and has already started to bring more activity into the market. Even modest rate improvement can help with affordability, increase buyer confidence, and create momentum for both purchase activity and refinancing conversations.

Why Real Estate Agents Need to Understand Non-QM Loans

If you are out selling real estate right now and you are not familiar with Non-QM products, I want to tell you a little bit about them. These are products that do not conform to conventional, FHA, or VA guidelines. What they do is allow you, the real estate agent, to put more people in homes who may not qualify under normal terms.

Non-QM products can include:

• Bank statement programs for self-employed borrowers.
• DSCR loans for real estate investors.
• DACA loan programs.
• Asset-based loans to help people with high assets but less documentable income.

For agents, this means you can help clients that otherwise might have been turned down for a conforming or government loan. Buyers who do not fit the traditional box still have a path to homeownership through the right Non-QM solution.

Florida Tax Relief Could Improve Affordability

Governor DeSantis is back in action again, calling for a special legislative session focusing on tax relief for Florida homeowners. This measure passed the House but initially failed the Senate on the way out. Because this is a special session, they can only discuss this specific issue.

Lawmakers are looking for ways to fill the revenue shortage that would result from eliminating homesteaded taxes, and they have also proposed increasing the homestead exemption to $250,000. That is an unbelievable increase!

We do not know if it is going to pass yet, but the proposal is gaining momentum. If we can get relief on taxes and home prices, it is going to make affordability much better for not only first-time homebuyers but also move-up buyers.

Additionally, we recently conducted a three-part interview with Michael Yaworsky, the Florida Commissioner of Insurance Regulation, discussing upcoming initiatives to assist homeowners with property insurance. You won’t want to miss those updates!

Join Our Upcoming Non-QM Lunch and Learn

To help local agents better understand these opportunities, I am hosting a special Lunch and Learn on June 24th in Maitland.

This session is designed to put more money in your pocket by teaching you how to save deals using Non-QM products. I only have 100 seats available, and I plan to fill the house up. We will have lunch during the class and a happy hour afterward.

If you’re a real estate agent, you won’t want to miss it!

Ready to help more clients qualify?
Register for the Non QM Strategies for Realtors to reserve your seat today.