First Time Home Buyer Florida

Being a first time home buyer can be exciting but very overwhelming without the guidance of a Certified Mortgage Advisor™.

You might be asking:

What is a first time home buyer?
How to qualify for a home loan as a first time home buyer?
How to apply for a first time home buyer loan?
What type of first time home buyer programs are available in Florida?
Do you qualify for a first time home buyer program if you previously owned a home?
How much down payment do you need as a first time home buyer?
How much do first time home buyers have to put down in Florida?
First time home buyers can get an FHA loan with 3.5% down or a conventional mortgage with 3% down. The percentage down is based on the purchase price so a simple example would be 3% of 300k price which is $9,000 for down payment.
What are the common mistakes first time home buyers make?
They fail to shop around for the best mortgage rate. Most often first-time home buyers end up going with the mortgage person that was referred to them by their real estate agent. This by itself is not a bad thing but not all mortgage lenders or mortgage brokers offer the same rates. A half a percent difference in rates can cost a first-time home buyer ten and thousands of dollars over the life of the mortgage not to mention their increased monthly obligation.
What is considered a first time home buyer in Florida?
A person that has not owned a home in Florida or anywhere in the county within the last 3 years. However, displaced spouses that have gone through a recent divorce may be exempt from the 3 year rule.
Which loan is best for first-time home buyers?
Your credit score plays the biggest factor with regards to the best loan for first time home buyers. If your credit scores are good, then your best loan option would be the 3% down conventional but if your credit score is low like 580 then your best option would be an FHA loan.
How do I qualify for a FHA loan in Florida?
Qualifying for an FHA loan in Florida is very straightforward. You need a minimum of 580 credit score, 3.5% available for down payment and your debt-to-income ratio will preferably need to be under 45% of your gross monthly income.
How much are closing costs in Florida?
Average standard closing costs in Florida to buy a home is about 3% of the purchase price. The percentage of closing cost goes down as the purchase price increases since some of the closing costs are fee based and some percentage based.
What is FHA loan limit in Florida?
FHA loan limits change annually based on the median home prices in the county that you are trying to purchase a home in. FHA loan limits for 2022 in most of Florida are $420,680.00
How much is a down payment on a house in Florida?
The amount of down payment on a house in Florida or anywhere in the country will depend on the type of loan you are applying for. For instance, eligible veterans can buy a home with zero down payment. First time home buyers can get a conventional loan with just 3% down payment. FHA approved buyers can put just 3.5% down.
How can I buy a house with no money down in Florida?
The only way to purchase a house with no money down is if you are eligible for a VA loan that allows 100% financing for qualified borrowers.
What are the fears of first-time home buyers?
Not getting their offer accepted and losing to a cash buyer. Also, first time home buyers tend to get emotionally attached to a home before their offer is accepted and cause themselves unnecessary anxiety. Lastly, they tend to assume the worse that they may not get their loan approved and close on time. To avoid these fears, they should work with a real estate agent that walks them emotionally through every step of the offer process and work with a trust mortgage advisor that takes the time to explain and guide them through the entire home loan process.
Which bank gives easiest home loan?
There is no such thing as easy loans other than FHA or VA streamline refinances. All mortgage loans require similar documentation and guidelines. They require minimum credit score, down payment and maximum debt-to-income ratios. The only way to get an easy loan is being organized and providing the underwriter all the required documents in a timely organized manner.
How does the government help first time buyers?
FHA loans are the biggest ways the government help first time home buyers the ability to purchase a home. FHA loans are government backed loans and thus provide more lenient credit requirements than traditional loans.
What qualifies me for an FHA loan?
Must be at least 18 years old, valid identification, Credit, income and down-payment.
What is the downside of an FHA loan?
The biggest downside with FHA loans are the high monthly mortgage insurance and the fact that they carry mortgage insurance for the life of the mortgage or until you pay the loan off, refinance into a conventional loan or sell the home.
Is it hard to get a house with FHA?
It’s not hard to get a house with an FHA loan. However, depending on market conditions, sometimes the sellers are more inclined to accept conventional mortgage offers over FHA offers. Conventional loans are associated more with well qualified borrowers compared to FHA loans that are more lenient with regards to credit and down-payment.
How much are closing costs in FL 2022?
Closing costs in Florida have nothing to do with which year you are buying a home in. The total closing costs are usually about 3% of the purchase price.
Do I qualify as a first-time buyer?
If you haven’t owned a home in the last 3 years you are considered a first-time home buyer.
What credit score is needed to buy a house in Florida?
FHA and VA loans require a minimum 580 credit score assuming overall credit is ok without too many derogatory accounts. FHA does have an option for borrowers with scores lower than 580 but requires at least 10% down payment assuming credit is not completely horrible. Conventional loans require a minimum 620 middle score. Jumbo loans usually require at least a 720+ credit score.
Can 3 people buy a house with an FHA loan?
Yes. For instance, you can have both spouses and a parent that either lives with them or is a cosigner on an FHA loan.
Is it a good time to buy a house in Florida 2022?
The best time to buy a home is when you find the home that is right for you. People that try to time the market often tend to miss the boat. It is always better to own a home regardless of mortgage rates than to pay rent and pay someone else’s mortgage for them.
How much do you have to make a year to afford a $400000 house?
Assuming you don’t have much credit card or instalment loan debt, you would need between 80-90k in gross income to qualify for a 400k home price.
Can first time buyers rent their property?
When purchasing a home as a first time home buyer, most lender make you sign an affidavit of occupancy that you will occupy and not rent out the property for at least 12 months. After 12 months you can convert your primary home into a rental property. However, most often you cannot purchase another home using an FHA loan if your current home mortgage is FHA.
What is the maximum a first-time buyer can borrow?
The maximum a first time home buyer can borrow is determined by their income and amount of money they have available for down payment. Your income determines the maximum mortgage you qualify for and your down payment determines the maximum home price you can buy.
Which loan is best for first time home buyers?
FHA loans are best if you have some credit issues but conventional loans are better if you have good credit.
How much credit to you need to buy a house?
Preferably you need a 620+ credit score but certain loan programs like FHA or VA allow for scores under 620.
What are 3 things lenders look for?
Credit, income, and down-payment.
Who qualifies for down payment assistance in Florida?
Down payment assistance is typically for low-income borrowers. Most county bond or state grants require that your income be no more than 80% of the median income in your county. Thus, down payment assistance is really designed to help low-income housing.
What is the lowest down payment you can do?
3% on conventional loans and 3.5% on FHA loans or zero down if you are eligible for a VA loan. If you are trying to purchase a luxury home and fall under the jumbo loan category then you will need a minimum of 10% down and sometimes 20% depending on the loan size.
How long does it take for FHA loan to be approved?
A Good mortgage broker can have your initial FHA loan approval as fast as 2 hours. If your file is clean and you have all the required documents such as pay stub, w2s and tax returns and bank statements for verification of down payment/closing costs then your mortgage broker can close an FHA loan from start to finish in as little as 14 days.
Why do Realtors® not like FHA?
Realtor® work commission only so they would rather work with buyers that have good credit, income, and down payment so they are not running around town showing homes to borrower that may or may not qualify for a loan. FHA buyers often have some issues with their credit and have limited funds, so their home search is very limited to specific maximum price points.
Is it better to go FHA or conventional?
It’s always better to go conventional if you have good credit. FHA loans should always be your second choice due to the higher costs associated with them upfront and monthly.
How can I lower my closing costs in Florida?
With regards to standard closing costs, you have the option of using a low priced mortgage broker that provides you with low rates and lender credit to cover/reduce the closing costs.
What advantages do first time buyers get?
First time home buyers have the advantage of putting lower down payment on conventional loans compared to non-first time borrowers.
Can I be a first-time buyer twice?
You can be a first-time buyer as many times as you want as long as there is a 3 year gap between selling and buying a new home.
What credit score do you need to cosign a mortgage?
You can be a cosigner with as low as 620 credit score but preferably need to have a higher score than the primary borrower since lenders price loans based on the lowest credit score of all applicants.
What credit score do I need for FHA?
Minimum 580 with 3.5% down or 500 if you have 10% down assuming overall credit is not completely shut. See our Florida FHA Loan Requirements page. 
Can you have 2 houses with FHA?
Only time you are allowed to have 2 houses with FHA loans is if your existing employer required you to relocate to a different city or state.
What credit score is good to buy a house?
A 780 plus credit score gets you the best rates on the market. Most mortgage lenders offer the same rater to any borrower over 780 credit score so whether you have a 781 or a 840 credit score you end up getting the same rate. That being said a credit score of 700 still gets you a good rate on a mortgage.
What affects mortgage rates in Florida?
Mortgage rates in Florida are primarily affected by the borrowers credit score. The lower the credit score, the higher the interest rate. First time home buyers do get additional incentives on mortgage rates if they are below 80% of the county median income. 
What are the tips for first time home buyers?
Keep calm. Don’t get emotionally attached to a property until the offer is accepted. Work with a real estate agent that understands mortgage numbers and helps you find a home that is clearly within your budget and not the highest priced. Finally, use a good mortgage advisor or mortgage broker that can help you make financial decisions that best fit your needs long-term and short-term.
Is there help for first time home buyers in Florida?
Depending on your income there are down payment assistance programs and state funded bonds that help first time home buyers that fall within 80% of their county median income.
Can you be a first-time buyer twice?
Yes. You can be considered a first time home buyer multiple times. Each time requires that you may not have owned a home for a minimum of 3 years at the time of application.

Today’s rates

Conventional Loans

Rates for Primary Home Purchase

5.625% (5.775% APR)

5.5% (5.654% APR)

5.125% (5.337% APR)

FHA & VA Loans

Rates for Primary Home Purchase

5.25% (6.098% APR)

5.25% (5.548% APR)

Rates, terms, and fees as of May 12, 2023 1:07 pm and subject to change without notice. Select a product to view important disclosures, payments, assumptions, and APR information. Please note we offer additional home loan options not displayed here. Rates for Primary Home Purchase.

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