Your Florida Mortgage Questions Answered

Pre-qualification is an informal estimate of how much you might be able to borrow based on self-reported income, debt, and assets — no verification, no credit pull. Pre-approval is the real thing: we verify your income, assets, employment, and pull your credit, then issue a written commitment letter. Sellers in Florida's competitive market expect a full pre-approval letter, not a pre-qualification. Read our pre-approval guide →

With Divito Lending, most pre-approvals are issued within 24 hours of receiving your complete application and documents. The application itself takes about 15 minutes online. Pre-approval letters are typically valid for 90 days. Start your application →

Minimums vary by loan type:

• FHA loans: 580 (or 500 with 10% down)
• VA loans: 580–620 typical
• Conventional loans: 620+
• Jumbo loans: 700+

Better credit means better rates — every 20-point jump can save you thousands over the life of the loan.

Standard documents include:

• Last 2 years of W-2s and tax returns
• Last 30 days of pay stubs
• Last 2 months of bank statements
• Photo ID
• Proof of any other income (Social Security, pension, etc.)

Self-employed borrowers need 2 years of business tax returns and a year-to-date profit & loss statement. We provide a complete checklist when you apply.

No — federal regulations treat multiple mortgage inquiries within a 45-day window as a single inquiry. Shop confidently. The slight credit dip is offset by the savings of finding a lower rate, often thousands of dollars.

Down payment minimums depend on the loan:

• VA loans: 0%
• USDA loans: 0%
• FHA loans: 3.5%
• Conventional loans: 3% (first-time) or 5% (repeat buyers)
• Jumbo loans: 10–20%

On a $400,000 Florida home, that's $0 to $80,000. Lower down payments usually require mortgage insurance.

Florida closing costs typically run 2–5% of the loan amount. On a $400,000 loan, expect $8,000–$20,000 in lender fees, title insurance, doc stamps (Florida-specific tax), recording fees, appraisal, and prepaid escrows. Florida has a documentary stamp tax of $0.35 per $100 borrowed plus $0.70 per $100 on the deed, which is a notable Florida cost. Read our Florida closing costs guide →

PMI (private mortgage insurance) is required on conventional loans when your down payment is less than 20%. It protects the lender, not you. PMI typically costs 0.3–1.5% of the loan annually and is added to your monthly payment. You can request PMI removal once you reach 20% equity, and it automatically drops off at 22% equity.

Yes. Florida Housing Finance Corporation offers several programs:

• Florida Assist: Up to $10,000 deferred loan
• Florida HFA Preferred: 3–5% grant for closing/down payment
• Hometown Heroes: Up to $35,000 for first responders, teachers, healthcare, and other essential workers

Many county and city programs also exist. We help qualified buyers apply.

Yes, gift funds from family are allowed for most loan types. You'll need a signed gift letter from the donor stating the money is a gift (not a loan) and proof of the transfer. FHA loans allow 100% gift funds; conventional loans require at least some borrower-contributed funds on second homes and investment properties.

Conventional loans (3% down, 620+ credit) require PMI under 20% down but PMI drops off at 22% equity. FHA loans (3.5% down, 580+ credit) require both an upfront premium (1.75%) and monthly MIP — and that monthly MIP usually stays for the life of the loan if you put less than 10% down. FHA is more forgiving on credit; conventional is cheaper long-term if you can qualify. Read the full comparison →

VA loans are available to:

• Active-duty military
• Veterans with qualifying service (typically 90 days wartime or 181 days peacetime)
• National Guard and Reserves with 6+ years of service
• Surviving spouses of veterans

You'll need a Certificate of Eligibility (COE), which we can help you obtain. Benefits include $0 down, no PMI, and competitive rates. Read the VA loan guide →

A jumbo loan exceeds the conforming loan limit set by Fannie Mae and Freddie Mac. In Florida for 2026, that limit is $806,500 in most counties. Jumbo loans typically require 700+ credit, 10–20% down, and 6–12 months of cash reserves. They're standard for luxury homes, especially in South Florida and the coast. Florida jumbo loan guide →

Fixed-rate mortgages lock your interest rate for the entire loan (typically 15 or 30 years), so your principal and interest payment never changes. Adjustable-rate mortgages (ARMs) start with a lower fixed rate (e.g., 5, 7, or 10 years), then adjust annually based on market rates. ARMs make sense if you plan to sell or refinance before the adjustment period ends. Read our ARM guide →

Yes. USDA Rural Development loans offer 100% financing (no down payment) for eligible rural and suburban areas in Florida — which actually covers a surprising amount of the state outside major metros. Income limits apply (typically 115% of area median). Many parts of central Florida, the Panhandle, and outside Orlando, Tampa, and Jacksonville qualify. Florida USDA loan guide →

A bank lends you their own money and only offers their products. A mortgage broker (like Divito Lending) shops 50+ lenders to find your best rate and terms. Brokers can access wholesale rates that retail banks don't offer, often saving borrowers 0.25–0.5% on their interest rate — which can mean tens of thousands in savings over a 30-year loan.

We're typically compensated by the lender at closing (called lender-paid compensation), which means no out-of-pocket broker fees for you. Our compensation is the same across all our lender partners, so we have no incentive to push you toward one lender over another — we genuinely shop for your best deal.

Three reasons:

1. Better rates — brokers access wholesale pricing not available to consumers directly.
2. More options — if one lender declines you, we have 50+ others.
3. Personalized service — you work with one licensed advisor through the entire process, not a call center.

The classic rule is to refinance when you can lower your rate by 0.75% or more — but it really depends on your break-even point. Divide your closing costs by your monthly savings: that's how many months until you "pay back" the refi. If you'll stay in the home longer than that, refinancing makes sense. Read our break-even analysis guide →

There's no legal limit. Most lenders require at least 6 months between refinances (called "seasoning"). For VA IRRRL and FHA streamline refis, you typically need 210 days from your last loan and 6 on-time payments. Refinance whenever the math works in your favor.

A cash-out refinance replaces your existing mortgage with a larger one and gives you the difference in cash. Example: $300K home, $200K mortgage. You refinance into a $250K loan and pocket $50K. Best uses: home improvements, debt consolidation, investment. Most lenders cap cash-out at 80% loan-to-value. Read the cash-out guide →

The VA Interest Rate Reduction Refinance Loan (IRRRL) is a streamlined refinance for existing VA loan holders. No appraisal, no income verification, no credit check at most lenders. It's designed to lower your rate or convert an ARM to a fixed-rate loan quickly. Closing can happen in as little as 2 weeks. Read the VA IRRRL guide →

A rate-and-term refinance changes the interest rate, loan term, or both — without taking cash out. It's the most common refinance type, used to lower your rate, shorten your loan (e.g., 30-year to 15-year), or switch from an ARM to a fixed-rate loan. Closing costs typically run 2–4% of the loan amount.

From contract to close, expect 30–45 days for a standard purchase. Refinances typically close in 25–35 days. VA IRRRL and FHA streamline refis can close in 2–3 weeks. We work with Florida title companies to keep closings on schedule and avoid last-minute delays.

Underwriting is the lender's process of verifying everything: income, assets, employment, credit, property value, and the loan's overall risk. The underwriter either approves, denies, or asks for more documentation ("conditions"). It usually takes 1–2 weeks once your file is submitted, depending on the lender's pipeline.

An appraisal is an independent estimate of the home's market value, ordered by the lender to make sure the home is worth what you're borrowing. The borrower pays for it (typically $500–$800 in Florida), and it's usually paid upfront at order time. If the appraisal comes in low, the buyer and seller can renegotiate the price or you can put more down.

Yes. Once we have a contract or refi application, we can lock your rate for 30, 45, or 60 days at no cost. If rates drop significantly during your lock, some lenders offer a one-time "float-down" option. Locking protects you from rate increases between application and closing.

Florida's effective property tax rate averages about 0.91% — close to the national average. However, Florida has no state income tax, which makes the overall tax burden lower than most states. Homesteaded primary residences benefit from a $50,000 exemption and the "Save Our Homes" cap that limits annual assessed value increases to 3%.

Federal law requires flood insurance if your home is in a FEMA-designated Special Flood Hazard Area (SFHA) — typically Zone A or V — and you have a federally-backed mortgage. Even if you're not in a flood zone, lenders may recommend it. Costs vary widely from $400/year in low-risk zones to $4,000+/year in coastal high-risk zones.

Florida residents who own and occupy their primary residence can claim a homestead exemption of up to $50,000 off the assessed value for property tax purposes. You must file with your county property appraiser by March 1st of the year you want to claim it. You also get the "Save Our Homes" cap that limits annual assessed value growth to 3%.

Florida lenders typically require windstorm/hurricane coverage as part of homeowners insurance, especially within 1 mile of the coast. Annual premiums in Florida average $4,000+ and can exceed $10,000 in high-risk coastal areas. This is escrowed monthly and added to your mortgage payment, so it materially impacts your monthly housing cost — we factor it into your pre-approval.

Yes. Second homes require 10% down minimum (conventional only — FHA and VA don't allow second homes), and the home must be at least 50 miles from your primary residence and used as a personal residence (not rental). Rates are typically 0.125–0.25% higher than a primary residence. Read the vacation home guide →

Investment property loans require larger down payments (20–25%), better credit (typically 700+), and cash reserves (6+ months of mortgage payments per property). Rates are usually 0.5–0.75% higher than primary residence loans. Up to 75% of expected rental income can be counted toward qualifying. Florida investment property guide →

Yes. Self-employed borrowers typically need 2 years of business tax returns, a year-to-date profit & loss statement, and bank statements. Lenders use your net income (after deductions) rather than gross, which can make qualifying harder. Bank statement loans and other non-QM products are available for self-employed borrowers whose tax returns don't show enough income.

Yes — student debt doesn't disqualify you. Lenders use your monthly student loan payment in your debt-to-income (DTI) ratio. FHA uses 1% of the balance if your payment is $0 (income-driven repayment). Fannie Mae allows the actual payment from your statement, even if it's $0. We can help structure your application to maximize qualifying power.

DTI is your monthly debt payments (mortgage + credit cards + auto + student loans, etc.) divided by your gross monthly income. Most lenders cap DTI at 43–50%. Lower is better.

Example: $2,000 in monthly debts ÷ $6,000 gross monthly income = 33% DTI.

An escrow account is held by your lender to collect and pay your property taxes and homeowners insurance. You pay 1/12 of the annual amount each month with your mortgage payment, and the lender disburses tax and insurance bills when due. Escrow is required if your down payment is less than 20% on most loans, and always required on FHA and VA loans.

Not legally, but strongly recommended for first-time buyers. A buyer's agent negotiates on your behalf, identifies issues, manages the timeline, and is typically paid by the seller. We don't sell real estate — we focus on financing — but can refer you to trusted Florida agents if you don't have one.

Generally, 760+ credit scores qualify for the best rates. Tier breakpoints: 760+ (best), 740–759, 720–739, 700–719, 680–699, 660–679, 640–659, 620–639. Each tier above 620 saves you about 0.125% on your rate. Below 620, you'll likely need FHA or VA.

Three biggest factors:

1. Pay down credit card balances to under 30% of your limit (under 10% is ideal)
2. Don't apply for new credit in the 6 months before applying
3. Don't close old accounts — length of credit history matters

Even small improvements before applying can save you thousands.

Title insurance protects you and the lender against undiscovered title defects, liens, or ownership disputes from before you bought the property. In Florida, the seller traditionally pays for the owner's policy in most counties (you pay for the lender's policy). It's a one-time cost at closing — never paid again.

On most modern loans (conventional, FHA, VA, USDA), there is no prepayment penalty — you can pay extra principal anytime or pay the loan off entirely with no fees. Some non-QM and jumbo loans may have prepayment penalties; we'll always disclose this before you sign.

Denial isn't the end. The lender must give you a written reason. Common fixes: improve credit, lower DTI, increase down payment, switch loan programs (FHA instead of conventional), or try a different lender. Because we work with 50+ lenders, if one says no, we often find another that says yes.

No — this is the biggest mortgage myth. You can buy with 0% down (VA, USDA), 3.5% down (FHA), or 3% down (first-time buyer conventional). 20% only matters because it avoids PMI on conventional loans. Many first-time buyers in Florida buy with 3–5% down and refinance later when they have more equity.