By Ocean Sotheby’s International Realty
We know that buying a home in Marathon isn’t just about finding the right property—it’s also about choosing the right mortgage. Whether you’re eyeing a waterfront condo, a canal-front cottage, or a luxury single-family retreat, understanding the types of mortgages available in Marathon can help you make the best long-term decision. Let’s break down your options and show you how each one fits different financial goals and property types.
Key Takeaways
- Marathon buyers have access to a range of mortgage types.
- Fixed-rate and adjustable-rate loans each offer distinct benefits.
- Government-backed loans help certain buyers qualify more easily.
- Your mortgage choice impacts your monthly payment and long-term equity.
Fixed-Rate Mortgages: Predictable and Popular
A fixed-rate mortgage locks in your interest rate for the life of the loan, usually 15 or 30 years. It’s the most common choice for Marathon buyers seeking long-term stability.
Why Buyers Choose Fixed Rates
- Stable monthly payments – Great for budgeting and planning.
- Long-term value – Especially helpful in markets with rising rates.
- Popular for second homes – Offers predictable costs on vacation properties.
- Peace of mind – No surprises as rates fluctuate.
If you plan to keep your Marathon home for a while, this is often the most straightforward option.
Adjustable-Rate Mortgages (ARMs): Flexibility with Limits
ARMs offer a lower starting interest rate, which can adjust periodically after an initial fixed term (often 5, 7, or 10 years). This can be a smart move for short-term ownership or if you expect rates to stay low.
When ARMs Make Sense
- Lower initial payments – Helpful for buyers easing into a second home or investment.
- Selling or refinancing soon – Great if you don’t plan to hold the loan long-term.
- Rate caps limit increases – Protections are built in to prevent extreme hikes.
- More buying power – May qualify for a larger loan upfront.
We often see ARMs used for waterfront properties where buyers anticipate future upgrades or quick appreciation.
Government-Backed Loans: FHA, VA, and USDA Options
If you're a first-time buyer or a veteran, you might qualify for a government-backed mortgage. These loans offer competitive terms and lower down payments—but not every property in Marathon will qualify.
Key Features of These Loan Types
- FHA loans – Low down payment, flexible credit guidelines.
- VA loans – No down payment for eligible veterans and service members.
- USDA loans – For qualifying rural areas and income levels (not common in the Keys).
- May include mortgage insurance – Required for certain programs.
While these loans may not be the best fit for luxury or non-warrantable properties, they’re a great starting point for primary residences in more affordable price ranges.
Jumbo Loans: For High-Value Properties
In a market like Marathon, many homes exceed conventional loan limits. Jumbo loans are designed for buyers financing properties that require larger-than-average loan amounts.
When You’ll Need a Jumbo Loan
- Purchase price exceeds conforming limits – As of 2024, that’s $766,550 for most of the U.S.
- No government backing – These are private loans, so guidelines are stricter.
- Higher credit and income requirements – Lenders look for strong financials.
- Often used for luxury or waterfront homes – A common option in the Florida Keys.
We work closely with lenders who specialize in jumbo financing and understand the Marathon market.
FAQs
What type of mortgage is best for a second home in Marathon?
Many buyers use fixed-rate or ARM loans, depending on their timeline. Jumbo loans are common for luxury or waterfront purchases.
Can I use a VA or FHA loan in the Florida Keys?
Yes, though not all properties will qualify. We can help you find homes that meet the loan criteria.
How do I choose the right mortgage type?
It depends on your financial goals, timeline, and the property itself. We’ll help you connect with trusted local lenders to compare options.
Contact Us at Ocean Sotheby’s International Realty Today
Choosing the right mortgage is one of the most important parts of buying a home in Marathon. We’re here to guide you not just through the home search—but through the full purchase process, including working with experienced lenders who know the Keys.
Reach out to us at Ocean Sotheby’s International Realty, and let’s talk about your goals, your ideal property, and the best mortgage options to help you make it yours. We’re here to help you make informed decisions—every step of the way.
Reach out to us at Ocean Sotheby’s International Realty, and let’s talk about your goals, your ideal property, and the best mortgage options to help you make it yours. We’re here to help you make informed decisions—every step of the way.
