Top 14 First Time Home Buyer Programs in Florida (2024 Edition)

As a first time home buyer in Florida, you’ll likely find the process simultaneously exhilarating and nerve-wracking. To reduce house hunting stress, here are a few things to consider prior to beginning your search:

• What is your budget/how much home can you afford?
• What is your credit score?
• Would you prefer to live in the city, the suburbs or somewhere more rural?
• What type of property are you looking for? (e.g. a single-family home, a duplex, condo, townhome, a co-op, etc.)
• How many bedrooms and bathrooms do you need?
• What are your must-have features in a home, and which features would simply be nice to have?
• What is important to you? (e.g. a good school district, proximity to work, room to grow, etc.)

Once you know which loan works best for you, it’s a smart move to get prequalified for a mortgage. Although you can forgo this step, doing so puts you at a disadvantage since a pre-qualified buyer who wants the same home as you will be able to bid on it first.

In addition, the process of getting prequalified for a mortgage gives you the opportunity to discuss loan options and budgeting with your mortgage broker. You’ll also learn what the maximum amount you can borrow is, which will help you determine your home purchase price range.

To get prequalified for a loan as a first time home buyer in Florida, you’ll need to provide the following to your mortgage broker:

• Proof of income
  • Employee verification letter
  • Pay stubs from the past two months
  • IRS W-2 forms and tax returns from the past two years
• Proof of assets
  • Savings account
  • 401(k)
  • Stock dividends
  • Investment account statements
• Your tri-merge credit report
• Your debt-to-income (DTI) ratio

There are many Florida-specific and national loan options to help you buy your first home. Although your mortgage broker can help you navigate them, it’s a good idea to educate yourself about all the different loans that are available to first time home buyers in Florida.

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First time home buyers in Florida can benefit from the following Florida-specific loan options:

There are several national loan options — FHA, USDA, VA, Conventional, Jumbo — available to first time home buyers in Florida.

As a result of applying for and receiving real estate grant funds, you could obtain thousands of dollars in free grant money that you may never have to pay back. These funds would help you make your down payment or supplement your mortgage.

If you aren’t prequalified for a mortgage, you have 90 days to apply after submitting your final offer.

The process of applying for a mortgage is not nearly as daunting as it used to be thanks to the mortgage industry becoming increasingly automated. For most people, getting approved is the most challenging aspect. To facilitate the process, you’ll want to connect with a highly regarded mortgage broker. They will expertly guide you through the mortgage application process and act as an official liaison between you and lenders. Although it’s possible to work directly with your bank to apply for a home loan, a mortgage broker will have access to a large network of lenders, which enables them to identify favorable mortgage terms for you.

The underwriter approval process is similar to the mortgage prequalification process. An underwriter will review your application to determine your ability to repay your debt based on factors such as credit score, credit history, employment history, income stability, debt-to-income ratio and assets.

Based on their findings, the underwriter will either approve, deny or suspend your application. If approved, your next step would be to get a home appraisal. If suspended, the underwriter likely needs more information before they can proceed. If denied, don’t fret — the underwriter will clearly explain why your application was rejected, so you can work with your mortgage broker to resolve any issues and apply again.

Once you’ve found your perfect home and are ready to make an offer, you should negotiate on the price. Don’t hesitate to walk away if a deal can’t be reached. Factors that will influence your offer include how long the house has been on the market and whether it requires any obvious repairs or upgrades. Once you have a signed offer, your lending institution will schedule an official home inspection. The home inspector’s report will reveal any unseen issues that may lead you to withdraw your offer or renegotiate.

 If you live in Florida and have any questions about buying your first home in the Sunshine State, contact one of our experienced mortgage brokers today. 

Your heart will likely be pounding in your chest from excitement as you’re about to take possession of your dream home. Only one step remains: closing on your new home with a title company.

During closing, your mortgage broker will work with you to review and sign all loan documentation, and you’ll be responsible for paying closing costs, which will likely include the following fees:

• Appraisal
• Origination
• Legal
• Title search
• Insurance
• Escrow

The total of your closing costs will depend on your mortgage option, loan amount, the type of property you purchase and its location. You may be able to offset them via various methods such as monetary gifts from family and friends depending on which loan type you chose.

If you have additional questions about becoming a first time home buyer in Florida, contact our friendly and knowledgeable team directly for more information.

Q: Are there multiple loan options available to first time home buyers in Florida?

A: Yes. There are many Florida-specific and national loan options to help you buy your first home.

Q: Is being prequalified for a loan the same as being approved for a mortgage?

A: No. Don’t make the mistake of thinking that being prequalified for a mortgage means you’ve been approved for a mortgage. You’ll still have to secure funding by going through the standard loan application process. A mortgage broker can expedite the process by serving as a liaison between you and lenders.

Q: How much money do I need to put down on a house in Florida?

A: If you qualify for a VA or USDA loan, you’re eligible to put no money down; if you qualify for a conventional loan, you can put as little as 3% down.

Q: How much is the average PMI for Florida?

A: Private Mortgage Insurance (PMI) will fluctuate based on your credit score and down payment; use 0.7% for a good ballpark. For example, on a $100,000 loan, multiply $100,000 by 0.7% for a $700 annual cost, or $58.33 a month.

Q: Do I need to get a home appraisal in Florida?

A: Yes. Even if you’re completely in love with the home you’ve found, it may have hidden flaws or be overpriced. This is why underwriters require a home appraisal from a lender-approved appraiser before they’ll provide final mortgage application approval. The home appraisal provides them with an objective idea of the home’s value and ensures you aren’t over-extending yourself financially.

Q: What do home appraisers do?

A: Home appraisers review:

• Current market trends
• The general condition of the home
• Square footage
• The number of bedrooms and bathrooms
• Additional space (e.g. basement, attic, crawl space)
• Building materials
• Foundation type
• Home improvements, upgrades and added amenities
• Neighborhood characteristics
• Lot size
• Recent sales of similar properties

Once the appraisal is complete, the appraiser will submit their findings to the underwriter for final review and approval. If approved, your mortgage broker will work with the lender to lock in the most beneficial interest rate prior to closing.