HomesToSeas
Marlissa Gervasoni, PA · Broker Associate
Century 21 AllPoints Realty
239-233-2160 · MGervasoniFL@gmail.com
Buyer Affordability Estimator

How much house
can you actually buy?

Four questions and about ninety seconds. You'll see a ballpark price range across Conventional, FHA, VA, USDA and Jumbo financing — with Southwest Florida taxes, insurance and flood costs built in, because those are the numbers that surprise people here.

Rates as of — · national averages
1

Start with your credit

Your credit range determines which loan programs are realistically open to you and what mortgage insurance will cost. The rates below are current market averages — your own score will move your rate up or down from there.

Used here to check program eligibility and estimate mortgage insurance — not to set the rate shown. Don't know it? Most credit card apps show a free score. Lenders pull all three bureaus and use the middle one.
A 15-year gets a lower rate but a much higher payment — which means a lower maximum price. Toggle it to see the trade.
Today's average rates Market averages, not a quote. Credit score, down payment, lender, points paid and your lock date will each move your actual rate up or down from these.
2

Income and monthly debt

Use gross income — before taxes and deductions. For debts, use the minimum monthly payments that show on your credit report.

All borrowers combined. Include base pay, plus bonus, commission or overtime you've received for two years.
Car loans, student loans, credit card minimums, personal loans, child support, alimony. Do not include rent, utilities, groceries, or insurance.
Savings, gift funds, 401(k) loan proceeds, sale proceeds. Leave a reserve — most programs want a couple months of payments left over.
3

The Southwest Florida numbers

This is where most online calculators get it wrong. Taxes, wind insurance and flood coverage can add $1,000–$1,800 a month here — which changes what you qualify for by a lot. These defaults are tuned to Cape Coral and Lee County; adjust any of them.

Cape Coral runs roughly 15–18 mills all-in. 16 mills = 1.60% of taxable value.
$9.50 per $1,000 ≈ $4,275/yr on a $450K home. Older roofs and frame construction run higher.
Most Gulf access and canal-front property sits in a flood zone. If you've decided you'll only buy outside one, choose No and flood insurance drops out of the math entirely.
Most Cape Coral single-family homes have none. Condos and gated communities do — and lenders count every dollar.
An elevation certificate moves this number more than anything else. Get one early.
Advanced assumptions — down payment, DTI posture, closing costs
Down payment
"Lowest allowed" shows each program at its true minimum — that's how they actually compete against each other.
At 20% or more on a Conventional loan, mortgage insurance drops off entirely.
Qualifying posture
Standard uses each program's everyday debt-to-income guideline. Maximum uses the stretch limits an automated underwriting approval can reach — real, but tight.
Percent of purchase price. In Lee County the seller customarily pays for the owner's title policy, which keeps buyer costs on the lower end. Includes state doc stamps, intangible tax, appraisal, survey, lender fees and escrow prepaids.
Program specifics
Exempt borrowers pay no funding fee at all, which is a meaningful advantage.
Knocks roughly $50,000 off taxable value. Note: your first-year tax bill resets to your purchase price, not what the seller was paying — that's the single most common budget shock in this market.
5

What your lender will ask for

A pre-approval is only as strong as the paperwork behind it. Gather these before you apply and you'll move from offer to clear-to-close far faster than the buyer competing against you. Print this page and use it as a checklist.

Identity

Every borrower on the loan
  • Government-issued photo ID — driver's license or passport
  • Social Security number and authorization to pull credit
  • Permanent resident card, visa, or work authorization if you're not a U.S. citizen
  • Current and prior two-year address history

Income — W-2 employee

Wage earners
  • 30 days of pay stubs, most recent, showing year-to-date earnings
  • W-2s for the past two years
  • Two years of federal tax returns, all pages and schedules
  • Two-year employment history with names, addresses and dates — gaps need a written explanation
  • Written explanation for any job change in the past two years
  • Award letters for bonus, commission or overtime income

Income — self-employed

25% or more ownership in a business
  • Two years of personal federal tax returns, all schedules
  • Two years of business tax returns — 1120, 1120S or 1065
  • K-1s for every partnership or S-corp interest
  • Year-to-date profit & loss statement and balance sheet
  • Business license, or a CPA letter confirming the business is active
  • 1099s for contract or commission income
  • Three to six months of business bank statements

Assets

Sourcing your down payment and reserves
  • Two months of statements for every checking and savings account — all pages, including the blank ones
  • Most recent retirement and investment account statements (401(k), IRA, brokerage)
  • Written explanation and paper trail for any large or non-payroll deposit
  • Signed gift letter plus proof of the donor's funds and the transfer, if any of the money is a gift
  • Fully executed sale contract and settlement statement if proceeds from another property are being used

Debts and credit history

As applicable to your situation
  • Statements for any debt not reporting correctly on credit
  • Divorce decree and marital settlement agreement, including child support or alimony terms
  • Bankruptcy discharge papers and schedules, or foreclosure or short sale documentation
  • Written letter of explanation for recent credit inquiries and any derogatory items
  • Twelve months of cancelled rent checks or landlord verification, if you rent
  • Student loan statements showing the actual payment and repayment plan

Other property you own

Skip if this is your only real estate
  • Current mortgage statements for every property
  • Insurance declaration pages and current tax bills
  • Lease agreements plus proof of receipt of rent
  • HOA statements showing dues and any assessments

Program-specific

VA, USDA and FHA borrowers
  • VA: Certificate of Eligibility, DD-214 or Statement of Service, and VA disability award letter if applicable
  • VA: documentation supporting the residual income test — household size and dependents
  • USDA: income documentation for every adult in the household, not just borrowers
  • FHA: explanation and documentation for any prior FHA loan

Property side of the file

Once you're under contract
  • Fully executed purchase contract with all addenda
  • Homeowners insurance quote and binder — start this the day you go under contract in this market
  • Flood insurance quote and elevation certificate, if applicable
  • Wind mitigation inspection and four-point inspection for older homes
  • HOA or condo documents, budget, and questionnaire
  • Earnest money deposit receipt and proof it cleared
One caution about timing. Between application and closing, do not open new credit accounts, finance a car, change jobs, move money between accounts without a paper trail, or make a large deposit you can't document. Lenders re-verify credit and employment days before closing, and any of those can unwind an approved file.
Next step

Let's turn a ballpark into a plan.

I'll connect you with lenders who actually know Southwest Florida insurance and flood underwriting, and we'll build a search around what the numbers really support.

Email Marlissa Call 239-233-2160