Your Florida Home’s Age Could Make or Break Your Mortgage Approval
- 14 Days To Close
- May 20
- 3 min read
Florida’s housing market is a time capsule. While the median U.S. home sold in 2024 is a historic 36 years old, but the median age of Florida homes is 28 years, which means most were built in the late ’90s. But not everywhere. On one end, you’ve got brand-new communities in Lakeland and Cape Coral popping up faster than Publix subs. On the other, Miami’s older homes are practically relics. And lenders? They treat these two extremes very differently.
The Appraisal Tug-of-War
In Florida, new homes often get the red-carpet treatment during appraisals. Take Lakeland, where over 40% of homes sold last year were built after 2019. Appraisers love these properties because they meet modern building codes, include energy-efficient features, and come with warranties that promise no surprise repairs. Lenders breathe easier knowing the roof won’t leak and the AC won’t quit, which means fewer hurdles to loan approval.
Older homes, though? That’s a different story. In Miami, where two-thirds of homes sold are 30+ years old, appraisers play detective. That 1990s gem might have “good bones,” but outdated electrical systems or aging plumbing could trigger repair requirements.
For example, a Jacksonville home built in the ’90s might appraise for $300,000 (that’s $100,000 less than a new build), but the lender could demand a $15,000 roof replacement before signing off. Suddenly, that “bargain” isn’t so simple.
Builder Incentives vs. Renovation Loans
Builders frequently partner with lenders to offer rate discounts, closing cost credits, or even free upgrades. These perks make loans easier to approve, since lenders trust the builder’s reputation.
But if you’re eyeing a classic Florida home, you might need a renovation loan. In Orlando, where older homes sell for $335,000 (compared to $446,000 for new builds), buyers often turn to FHA 203(k) loans to bundle purchase and repair costs.
The catch? You’ll need contractor bids and a lender who believes in your vision. It’s a great way to turn a fixer-upper into your dream home—but don’t expect a quick close. Wondering if going with your builder’s lender is the right move? Check out our blog to see what to consider before choosing a builder’s preferred lender.
Insurance
Insurers charge more for older homes, especially near the coast. A new build in Palm Bay might have impact-resistant windows and a fortified roof, trimming your premium to $3,500/year. Lenders see that as a green light.
But in Miami, insuring a 30-year-old home could cost $5k+ annually (if you can find coverage at all). Outdated wiring or a worn roof might spook insurers, and lenders could respond by slashing your approved loan amount or demanding extra cash upfront.
Where New Construction Can Win
Cities like Lakeland and North Port with have space to sprawl, so builders have been pumping out new homes. That flood of supply means lenders here are pros at handling construction loans and offering extended rate locks if your build runs late.
Meanwhile, in land-crunched markets like Tampa or Miami, older homes dominate. Lenders in these areas are used to appraisals that hinge on location over condition. A 1980s bungalow in Tampa’s Hyde Park might sail through approval because it’s in a walkable area, even if it needs a kitchen overhaul.
Which Should You Choose?
New homes mean smoother approvals, builder perks, and lower insurance. Older homes mean lower prices, renovation loans, and location perks… but prepare for appraisal surprises and insurance headaches. And with 28 years being the average age of a Florida home sold last year, most buyers will face these trade-offs.
Whether you're envisioning a modern new build with palm tree views or a vintage home with character and renovation potential, we’re here to help you navigate the mortgage approval process.
