Best Florida Mortgage Lenders for First Time Home Buyers

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Contributor, Benzinga
November 22, 2022

There’s no place quite like Florida. With its mild winters, miles of beaches and unique attractions like Walt Disney World, the Sunshine State has a little something for everyone. As a first-time homebuyer, Florida has a variety of homes and lenders to choose from. Let’s take a closer look at the best Florida lenders for first-time homebuyers.

Best Mortgage Lenders in Florida for First Time Home Buyers

You should get quotes from multiple lenders to ensure you get the best rates. To help you get started, here are the best mortgage companies in Florida for first-time buyers, all of which have been researched extensively by Benzinga.

The Housing Market in Florida: An Overview

Getting a sense of the Florida housing market can help you know what to expect when you start shopping for a home. Different cities, and even different neighborhoods within a city, will have different price points, so keep that in mind as you look for your new home. 

Here’s some quick Florida facts: 

Total households: 6,337,929

Median list price: 257,000

3 most expensive cities in Florida to buy a house:

  • Miami
  • Manalapan
  • Key Biscayne

3 most affordable cities in Florida to buy a house:

  • Kissimmee
  • Palm Coast
  • Cape Coral

Preparing for a Mortgage

The mortgage process may seem mysterious. You can help keep the process moving by being prepared. Here’s how the process works:

  1. Review your credit. Your credit history and credit score play a significant role in the mortgage process. Lenders have a minimum credit score requirement. If you don’t meet the minimum, you may need to improve before you can qualify for a mortgage. Before you apply for a mortgage, get a free copy of your credit reports. Review it for errors and areas for improvement. 
  2. Gather your documents. You can simplify things by having all your documents ready before you apply. Every lender will have different requirements, but in general, you will need to provide the following documents:
    • W2s for the past year
    • Tax returns for the past 2 years
    • Pay stubs from the past 2 months
    • Bank statements from the past 2 months
    • Investment and retirement account statements from the past 2 months
    • The most recent statement for all your debt payments 
    • A copy of your driver’s license
  3. Get pre-approved. Contact lenders and let them know you’re starting your home search process. Ask for a quote. Review the quotes and choose a lender and complete the lender’s preapproval process.  
  4. Find a home. An experienced real estate agent can help you find a home that fits your budget. Base your budget on how much your lender preapproved for you. 
  5. Make an offer. Your agent will assist you in making an offer. 
  6. Complete a loan application. Your lender will have you complete an application. The lender’s underwriting department will review your application. 
  7. Complete underwriting. Your lender may ask questions or need additional documents during underwriting. Provide documents promptly to keep things moving. Your lender will let you know if it has approved you at the end of underwriting. 
  8. Close on your home. You will need to sign documents and pay your closing costs. After that, you can move into your new home. 

Everyone runs into bumps during the mortgage process, so don’t panic. Respond to your lender promptly and ask questions if you need clarification. Here are the minimum credit scores required by some Florida lenders:

LenderMinimum Credit Score Required
Bank of America620
Caliber Home Loans620
Flagstar620
Homebridge620

Mortgage Options

As a first-time homebuyer, you’ll have several mortgage options to choose from when you get a purchase quote. Here’s a closer look at the most common mortgage options:

  • Conventional: A conventional mortgage is a mortgage that is not insured by a federal government agency. These mortgages typically require a higher credit score than FHA, USDA and VA mortgages. Mortgages can be fixed-rate, where the interest rate stays the same for the entire loan term, or adjustable-rate, where an interest rate changes on a schedule established by your lender. Adjustable-rate mortgages often have an introductory fixed-rate period. 
  • FHA: You can get an FHA mortgage through an FHA-approved lender. The Federal Housing Administration insures these loans, which lenders can offer to a wider range of home buyers. If you have a credit score of 580 or higher, you can make a down payment as low as 3.5%. If your credit score is 500–579, you may still qualify for an FHA mortgage if you make a 10% down payment. 
  • USDA: The U.S. Department of Agriculture backs loans to help low- to moderate-income borrowers purchase homes in rural areas, including many areas of Florida. These mortgages are available with no minimum down payment.
  • VA: The Veterans Administration backs VA loans. Current service members and veterans, along with some qualifying spouses, can obtain a low-interest mortgage with no minimum down payment. You have to meet the VA’s minimum service requirements to qualify. 
  • Jumbo: A jumbo mortgage is a type of conventional mortgage for higher-priced properties. Some conventional mortgages are conforming, which means Fannie Mae and Freddie Mac guarantee them. These organizations are government-sponsored but are private companies. Conforming conventional mortgages have limits set by the FHA. Jumbo mortgages are non-conforming, which means they are higher than the conforming limits. 

The bottom line is that FHA, USDA and VA mortgages are all insured by government agencies but offered through private, approved lenders. Private lenders offer conventional and jumbo mortgages. 

First-Time Home Buyer Programs in Florida

Buying your first home isn’t easy. It can be a challenge to come up with that initial down payment and the process can seem like a mystery. Florida offers programs that can help:  

  • Florida Housing First Time Homebuyer Program: This program offers 30-year fixed-rate mortgages to first-time home buyers who qualify based on income. To find out if you qualify, Florida Housing recommends you contact an approved lender. You can find one in your area by visiting its website. 
  • Florida Housing Down Payment Assistance: Florida Housing offers down payment and closing cost assistance in the form of a 2nd mortgage. This assistance is only available in conjunction with a Florida Housing mortgage. 
  • Florida Housing Mortgage Credit Certificate: First-time home buyers may also be eligible for a tax credit. The credit is based on a percentage of the mortgage interest you pay up to a limit of $2,000. This credit directly lowers the amount of federal taxes you owe. To qualify, you must meet purchase price and income requirements, which you can find out by talking to an approved lender

Current Mortgage Rates in Florida

Florida mortgage rates, the amount of interest you pay on your mortgage, are currently slightly lower than national average rates. 

Mortgage rates change daily based on market conditions. At Benzinga, we update mortgage rates regularly to reflect these changes. Here are the mortgage rates for common types of mortgages:

Loan TypeRateAPR
30-year fixed 6.13% 6.21%
15-year fixed 5.973% 6.115%
7/1 ARM (adjustable rate) N/A N/A
5/1 ARM (adjustable rate) 6.075% 7.509%
Rates based on an average home price of $245,169 and a down payment of 20%.
See more mortgage rates on Zillow

Closing a Mortgage

As you consider the best lenders for first-time buyers, keep an eye on their closing rate. Closing is when you’ve reached the end of the mortgage process. At that point, your lender has approved your loan, the appraisal is done and your lender is ready to fund your loan.

All you need to do is sign the paperwork and get the keys. Some lenders handle this process more quickly than others. Here are the average closing rates from popular Florida lenders. 

LenderAverage Days to Close
Bank of America45
Chase21
Flagstar30
Rocket Mortgage®30

Finding Your First Florida Home

Although the home-buying process can feel rushed, take the time to evaluate your options. Sure, you can get a refinance quote down the road if you need to, but find the best mortgage you can by contacting multiple lenders. Even a small difference in interest rates can save you thousands of dollars over the life of your mortgage.

The same goes for real estate agents — you may need to interview more than one before you find the right one. Take your time and trust your instincts, and you’ll find the home that’s right for you. 

Q

How much do first-time home buyers have to put down in Florida?

A

The lowest amount first-time homeonwers have to put down for a home is 3.5% on an FHA loan.

Q

What's the minimum credit score for an FHA loan?

A

The minimum credit score for an FHA home loan is 580.

Q

How much do I put down if my credit score is lower than 580?

A

If you credit score is lower than 580 and you are applying for an FHA loan, you will have to put down 10% to buy a home.

Get Ready for Take Off

Rocket Mortgage® is an online mortgage experience developed by the firm formerly known as Quicken Loans®, America’s largest mortgage lender. Rocket Mortgage® makes it easy to get a mortgage — you just tell the company about yourself, your home, your finances and Rocket Mortgage® gives you real interest rates and numbers. You can use Rocket Mortgage® to get approved, ask questions about your mortgage, manage your payments and more.

You can work at your own pace and someone is always there to answer your questions — 24 hours a day, 7 days a week. Want a fast, convenient way to get a mortgage? Give Rocket Mortgage® a try.

About Melinda Sineriz

Melinda specializes in writing about mortgages. student loans, personal loans, insurance, managing credit and debt, and credit cards.