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How the Pensacola Real Estate Mortgage Market Has Changed

In this article, I will take a look at the changes in mortgages used to purchase Pensacola real estate over the past several years.


In looking at the table above, it is pretty clear that the use of conventional mortgages for real estate purchases is declining in favor of FHA and Veteran’s Administration (VA) mortgages. It is no surprise that conventional mortgages are not as popular as they were only 2 years ago. The standard for a conventional mortgage is a 20% down payment. In previous years, many conventional mortgages were being issued with 10% down or no money down at all. Often the mortgage would require 20% down, and the borrower would borrow the 20% down payment in the form of a 2nd mortgage.

Notice in the table that the use of FHA mortgages have more than doubled in the past 2 years. VA loans have tripled! I believe that the increase in VA loans is unique to markets where there is a strong military presence, such as the Pensacola real estate market. Without our local military bases, the Pensacola area would be an economic disaster area. Thank goodness for our local veterans and active duty military who are buying Pensacola homes for sale and staying in Pensacola.

Most of the Pensacola military personnel who work out  of the Pensacola Naval Air station choose to live in Southwest Pensacola, in subdivisions such as South Bay, Coral Creek, and Emerald Shores. These beautiful neighborhoods provide fast easy access to Pensacola NAS and Corry Field.

Data for the table was provided by the Pensacola Association of Realtors, and is deemed reliable, but not guaranteed.

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