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Updated 3 months ago on . Most recent reply
![Ramatu Kuyateh's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/3064440/1719836579-avatar-ramatuk.jpg?twic=v1/output=image/cover=128x128&v=2)
Need assistance in understanding the investment process from one state to another
My husband and I currently own a townhome in Maryland for about 3 years now. We are now looking to move to Orlando Florida. We are thinking of purchasing a new home or townhome in Florida and renting out our current home in Maryland. I'm very new to this so please forgive the elementary questions. 1. For the FL properties, I have read that for a second property there would need to be 20% down payment. Would that be true if we made the new property in FL our primary? If not true, what would be the rate percentage for down payments? Would that affect the loan of our current property in MD? What are some things I would need to look out for when moving from one state to another? Also, what are some gotcha's when buying property in Orlando? Thank you in advance for all your wisdom. :)
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![Shawn McCormick's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/204052/1621433006-avatar-machweb.jpg?twic=v1/output=image/crop=788x788@152x0/cover=128x128&v=2)
Hi @Ramatu Kuyateh. If you plan to make Florida your primary than you won't have to put 20% down. The underwriter of your loan may want to see your current property be leased and make sure that it covers your PITI, but that will depend on the guidelines of your lender. That is a loan requirement, not just a Florida thing. However, depending on your loan type, if you put less than 20% down, you may have PMI (private mortgage insurance) which will make your monthly payment higher by up to a couple hundred dollars. I have some great lenders here that you could speak with about all of that. They will be able to talk to you about rates also. Since you aren't looking until next year, you wont' be able to get a rate quote now, most likely not until you are under contract and they can lock that in.
Not sure that there are any 'gotchas' when buying here that would be different than any other place. Be aware of insurance rates, they are higher than most other states. Some communities have CDD (community development district) fees. Its basically a tax that is over an above your property taxes and is used to pay back the developer that built out the infrastructure and amenities of the community. And of course, most homes have HOA's (homeowners associations) that can be $20-$250/month to pay for community maintenance, sometimes lawn care, cable/internet, amenity upkeep, pool, security etc.
Reach out if I can be of any assistance. Best of luck!