As the year wraps up, Florida’s lending landscape is showing a combination of rate stabilization and operational pressure—particularly tied to insurance, inspections, and documentation timelines. While interest rates have held in the low–mid 6% range for well-qualified borrowers, LOs are seeing increased friction in underwriting, condo approvals, and insurance verification.

Below is a detailed look at what’s driving borrower behavior and influencing closing timelines across the state this week.

Rates Holding, Buyer Interest Slowly Increasing

Rate volatility has eased, and this stability is encouraging more borrowers to restart the pre-approval process.

• Conventional remains a competitive option.
• FHA volume is rising at the fastest pace.
• First-time buyers are cautiously optimistic, especially those who paused earlier in the year.

Steadier rates are helping borrowers feel more confident about monthly payment projections as they plan early 2026 purchases.

Insurance Tightening Continues Statewide

Insurance carriers are implementing more restrictive guidelines, especially for homes with:

• Roofing concerns
• Older construction
• Pending 4-point or wind mitigation updates

This has led to:

• Additional underwriting conditions
• Last-minute premium adjustments
• More delayed clear-to-close decisions

Properties built before 2006 remain the most impacted, driving longer review times and more frequent documentation requests.

Appraisal Turn Times Improving

Appraisal timelines have shortened across key areas—including Broward, Palm Beach, Hillsborough, and Orange County.
This improvement is helping reduce contract-to-close durations for standard purchase loans, especially when borrowers submit complete documentation early.

Condo + HOA Reviews Still a Significant Delay Factor

Condo approvals remain one of the biggest operational bottlenecks in Florida.
HOA documentation delays are consistently pushing closing timelines, especially in older communities or associations with incomplete financials.
Loan Officers are encouraged to:

• Request HOA documents early
• Warn buyers about potential timeline extensions
• Stay in close contact with realtors and associations to avoid last-minute surprises

Final Thoughts

While rates are stable, operational risks—insurance, inspections, and condo approvals—are shaping borrower expectations and LO workflows. Staying ahead of these friction points can significantly shorten processing times and create smoother closings heading into Q1 2026. 👉 Connect with Dr. Mortgage for tailored guidance on Florida’s ever-changing market and streamline your next closing.