Top 10 Mortgage Questions Out-of-State Homebuyers Ask

Out-of-state buyers are flocking to Southwest Florida, but with paradise comes plenty of questions about financing. From second-home rules to condo requirements, insurance costs, and which lender to trust, the details can get confusing fast. To clear things up, here are the top questions we hear most often and the answers you need before making your move:

Question #1: Can I purchase a second home in Florida if I live outside the state?

Yes, you can. Second homes require as little as 10% down, and you can rent them out part of the year. The key is that the property’s primary use must be personal, not investment.

Question #2: What’s different about buying an investment property?

Investor loans require a minimum down payment of 15% and carry the highest interest rates because the home is expected to be rented for most of the year.

Question #3: Are interest rates a lot higher for investment homes?

Not by much. Rates are lowest for primary residences, slightly higher for second homes, and highest for investment properties.

Question #4: Can the seller assist me in covering closing costs?

Yes. You can negotiate seller concessions of up to 2% of the purchase price to offset closing costs and reduce your cash-to-close requirements.

Question #5: Can I use a lender from my home state?

You can, as long as they’re licensed in Florida. But non-local lenders often misquote taxes, insurance, and HOA fees. Those mistakes can throw off your approval. Local lenders are familiar with the true numbers and provide you with accurate estimates.

Question #6: Why is insurance such a big deal in Florida?

Florida has unique hurricane, wind, and flood insurance requirements that can drastically change your monthly payment. Condos add another layer with master policies and occupancy rules. Local experts can even help you save $1,000–$1,500 a year by shopping the right policies.

Question #7: Does a local pre-qualification really strengthen my offer?

Yes. Listing agents trust local lenders who know the market, and that credibility can help your offer stand out in a competitive situation.

Question #8: Are condos harder to finance?

Sometimes. Condominiums must meet strict guidelines set by Fannie Mae and Freddie Mac. A reputable Florida lender will thoroughly vet the building upfront and, if necessary, collaborate with backup lenders who have more flexible requirements.

Question #9: How do I close if I’m not in Florida?

Most out-of-state buyers use virtual or remote notary closings. A local title company will ensure that everything proceeds smoothly and you receive your keys on time.

Question #10: What’s the biggest mistake out-of-state buyers make?

Going with the lowest quoted payment instead of the most accurate numbers. If taxes, insurance, or HOA fees are underestimated, you could end up over budget or short on cash at closing.

Don’t let financing uncertainties keep you from your slice of paradise. If you’re considering buying a home in Southwest Florida, you can contact Chris Moliver at 305-878-3594 or via email at chris@sunshinemtg.com for a complimentary mortgage consultation.

For real estate guidance, you can reach out to me at 786-671-1194 or send an email to info@venturehomesrealty.com. We’re here to ensure your journey to homeownership in Florida is smooth, successful, and strategically sound.