Best Florida Mortgage Lenders for First Time Home Buyers

Benzinga readers often choose Rocket Mortgage® as the best mortgage lender.

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.

Quick Look: Best Mortgage Lenders for First Time Home Buyers in FL

• Best for Online Loans: Rocket Mortgage®
• Best for Self-Employed: CrossCountry Mortgage
• Best for Bank Statement Loans: Angel Oak Mortgage Solutions
• Best for VA Loans: Veterans United
• Best for Comparing Lenders: loanDepot
• Best for Comparing Rates: Credible Mortgage

6 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.

Rocket Mortgage is great for first time buyers, It offers an intuitive and easy online application process for quick preapprovals.

The Quicken Loans® website also offers resources such as mortgage loan calculators to help you sort through mortgage options.

If you have questions, Quicken Loans® has a highly reputated customer support team to assist you.

• Loan types offered: Conventional, FHA, USDA and VA
• Credit score requirement: 620
• Average days to close a loan: 30-45 days

2. Best for Self-Employed: CrossCountry Mortgage

CrossCountry Mortgage makes it easy for all types of home buyers to get approved for a mortgage. Their flexible requirements can help you get financing, with no employment or income verification and no minimum DTI. CrossCountry Mortgage offers traditional loan terms, as well as more flexible home payment plans with their 40-year loan program.

It's also easier to get approved if you're self-employed. Tax returns are not required and you'll only need one year of self-employment income history and a minimum credit score of 580. CrossCountry Mortgage can also help you get approved on assets alone, like your bank statements, stocks and bonds, or retirement accounts.

• Loan types offered: Conventional, FHA, USDA and VA
• Credit score requirement: 580
• Average days to close a loan: 21

3. Best for Bank Statement Loans: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio mortgage loans. Among their many customized loan solutions is their Bank Statement product for self-employed borrowers in Washington. This loan does not require tax returns and includes a 1099 Income option for 1099 earners. 

• Loan amounts up to $3 million
• 12 or 24 months personal or business bank statements
• Two years out of bankruptcy, short sale, foreclosure, or deed-in-lieu
• Owner occupied, non-owner occupied, second homes physically in Washington
• 1099 option available
• 40-year fixed interest only
• Delayed financing available
• Non-warrantable condos allowed

Angel Oak Mortgage Solutions offers a wide range of loan options allowing you to obtain any mortgage as long as qualification requirements are met. Washington residents can also refinance into any of these loans after their initial purchase. The customer service team is easy to reach via email, phone or the online contact form, and you can begin your journey by searching for a local advisor right on the website.

Angel Oak is headquartered in Atlanta, Georgia and is licensed in AL, AZ #0927070, licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, CO, CT, DE, DC, FL, GA #32379, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, NV, NH, licensed by the N.J. Department of Banking and Insurance, NM, NC, OH, OK, OR, PA, Rhode Island Licensed Lender, SC, TN, TX, UT, VT, VA, WA dba AOHL LLC, WI.

• Loan types offered: Conventional, FHA, USDA and VA
• Credit score requirement: 620
• Average days to close a loan: 20-45 days

4. Best for VA Loans: Veterans United

If you’ve logged some time in the military, Veterans United’s loans will likely be the best deal. Unlike other veteran-marketed loan programs, Veterans United only accepts active duty and veteran military members.

In addition to no-down-payment loans, you’ll also eliminate the private mortgage insurance you’ll have to pay with other mortgages.

Veterans United is also more forgiving of lower credit scores. Interest rates are lower than average.

• Loan types offered: VA, USDA, FHA and Jumbo
• Minimum credit score: 620
• Average days to close a loan: 30

5. Best for Comparing Lenders: loanDepot

loanDepot is a non-bank lender that gives you convenience and efficiency online with the option to visit one or over 200 branches across the country. loanDepot offers fixed-rate and adjustable-rate conventional mortgages. You could also secure jumbo, FHA or VA loans, although conventional loans made up most of LoanDepot’s mortgage originations last year. LoanDepot also offers 10-, 15-, 20- and 30-year mortgage terms. 

In addition to mortgages and home refinancing, LoanDepot offers free credit score monitoring to help you prepare to apply for a mortgage. You'll need at least 5% downpayment. 

• Loan types offered: Conventional, FHA, VA, and Jumbo
• Credit score requirement: 620 (depends on the lender)
• Average days to close a loan: 30 days (depends on the lender)

6. Best for Comparing Rates: Credible Mortgage

Unlike individual mortgage lenders, Credible is a lender marketplace that allows you to compare multiple lenders. You'll enter basic financial information and get quotes from several lenders on standard home mortgage products. Credible offers a free, fully online mortgage broker service that lets you get quotes from online lenders. It offers straightforward, convenient service with the possibility of finding the lowest interest rates.

• Loan types offered: Conventional, FHA, VA USDA and Jumbo
• Credit score requirement: 620 (depends on the lender)
• Average days to close a loan: 30 - 45 (depends on the lender)

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: 8,353,441

Median list price: $388,454

3 most expensive cities in Florida to buy a house:

• Jupiter Island: $9,691,748
• Golden Beach: $7,326,400
• Fisher Island: $5,975,448

3 most affordable cities in Florida to buy a house:

• Altamonte Springs: $198,500
• Callahan: $275,100
• DeBary: $270,500

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

 You need to determine the price you are willing to pay. Once you have decided on an offer price, you will submit a written offer through your real estate agent to the seller.

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:

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 Loans

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 Loans

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 Loans

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 Loans

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 Loans

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:

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. 

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. 

Frequently Asked Questions