If you’re deciding on which type of home loan to apply for in the Tampa Bay area, you might want to base your decision on the most popular home loans used by home buyers in Tampa Bay in 2016, based on MyFlorida Regional MLS home sales data.
The most popular loans used by homebuyers in 2016 in the Tampa Bay area were:
the New Conventional Loan
and the FHA Loan.
In each of the four Tampa Bay counties, the top home loans used in 2016 were the New Conventional Loan and the New FHA Loan. It’s worth noting though that in Pinellas, Pasco and Hernando, the majority of homes were paid for in All Cash.
Top Reasons Why Homebuyers Prefer Conventional Loan and FHA Loan
- Low down payments
FHA allows a down payment of only 3.5%. The Conventional 97 loan allows a 3% down. - Lower credit score requirement
FHA requires a credit score of at least 580. The Conventional 97 loan requires at least 620. - Available to both first-time buyers and repeat buyers
Both these loans are available to first-time buyers and repeat buyers, with the definition of first-time homebuyers becoming more flexible. Anyone who has not owned a home in the last three years is considered a first-time homebuyer. - Cash gifts allowed
Conventional 97 allows cash gifts from parents and other relatives to pay for down payments. These should be actual gifts and not personal loans in the guise of gifts.
Likewise, the FHA allows the 3.5-percent down to be paid with by a gift from a family member, employer, charitable organization or any other program acceptable to the FHA - Can be used for all types of homes
There could be lenders that include additional requirements for certain kinds of homes, but generally, both these loans are allowed to cover all types of residential properties.
Here are the types of home loans used in the four counties of Tampa Bay by homebuyers from January 1, 2016 to December 31, 2016:
HILLSBOROUGH COUNTY
| Rank | Home Loan | Number of Homes Bought with the Loan |
| New Conventional | 11,148 | |
| All Cash | 7,004 | |
| New FHA | 4,196 | |
| New VA | 2,190 | |
| Assume Conventional | 433 | |
| Other | 285 | |
| Assume VA/FHA | 186 | |
| New Private | 112 |
In Hillsborough, other loan types like Combination Loan, Owner Financing, USDA, ARM, Lease Option/Purchase, Second Mortgage, Balloon Mortgage and Assume Private were also used, but no loan was used by more than 60 people.
PASCO COUNTY
| Rank | Home Loan | Number of Homes Bought with the Loan |
| New Conventional | 4,306 | |
| All Cash | 4,979 | |
| New FHA | 2,072 | |
| New VA | 891 | |
| Assume Conventional | 126 | |
| Assume VA/FHA | 101 | |
PINELLAS COUNTY
| Rank | Home Loan | Number of Homes Bought with the Loan |
| All Cash | 9,171 | |
| New Conventional | 9,075 | |
| New FHA | 2,177 | |
| New VA | 955 | |
| Assume Conventional | 268 | |
| Assume FHA/VA | 117 | |
| Other | 284 | |
| New Private | 140 |
HERNANDO COUNTY
| Rank | Home Loan | Number of Homes Bought with the Loan |
| All Cash | 909 | |
| New Conventional | 620 | |
| New FHA | 444 | |
| New VA | 210 |
Just like in Hillsborough, all the other types of home loans were used sparingly in Pasco, Pinellas and Hernando, with each type of loan not getting more than 96 applications.
Recommended Loan Officers and Mortgage Brokers
We have been working over many years with our mortgage brokers. They have helped hundreds of couples, families and other homebuyers get financing to buy their own homes.
Contact us so we can refer you to them.