Financing Guide
Mortgages aren't as complicated as lenders make them sound. Here's a plain-English breakdown of loan types, credit scores, pre-approval, and what actually matters when you're financing a home in South Florida.
There are five main loan types you'll encounter in South Florida. Here's what each one actually means:
Best for: Borrowers with good credit and 5-20% to put down. Can avoid PMI with 20% down.
Most flexible. Can be used with HFA Preferred programs in Florida for reduced mortgage insurance.
Best for: First-time buyers with limited savings or lower credit scores. Very popular in South Florida.
Mortgage insurance (MIP) is required for the life of the loan with less than 10% down. Can be combined with FL Assist.
Best for: Active military, veterans, and eligible surviving spouses. Best loan deal available.
No down payment, no PMI, competitive rates. Florida has a large veteran population and many VA-savvy lenders.
Best for: Buyers in eligible rural/suburban areas. Parts of western Palm Beach County qualify.
Income limits apply. Guarantee fee required but can be rolled into the loan. Less common in South Florida but available.
Best for: First-time buyers in Florida who qualify through income limits. Best combined with FL Assist.
HFA Preferred and HFA Advantage programs offer reduced MI and can be paired with down payment assistance. See our buyer guide for details.
Credit scores matter, but they're not the barrier most people think. Here's the reality:
| Score Range | What You Can Get |
|---|---|
| 760+ | Best rates available. All loan types open. Most favorable terms. |
| 700–759 | Good rates. Conventional, FHA, VA all available. Minor rate premium vs. 760+. |
| 660–699 | Still solid. FHA and conventional available. Slightly higher rates. |
| 620–659 | FHA and some conventional loans available. Focus on improving score if possible. |
| 580–619 | FHA available (3.5% down). Limited conventional options. Work on credit for 6-12 months if possible. |
Pro tip: Even a 20-point improvement in your credit score can save you thousands over the life of a loan. If you're close to the next tier, it may be worth waiting 3–6 months to improve your score before applying.
Pre-approval is when a lender reviews your finances and commits to lending you a specific amount. It's stronger than pre-qualification (which is just an estimate) and essential before you start looking at homes seriously.
Income & Employment
2 years of tax returns, W-2s, or pay stubs. Stable employment history helps. Self-employed borrowers need additional documentation.
Debt-to-Income Ratio (DTI)
Your total monthly debt payments divided by gross monthly income. Lenders want this under 43–45%. Student loans, car payments, and credit cards all count.
Credit History
Payment history (35% of your score), credit utilization (30%), length of history (15%), new credit (10%), and credit mix (10%).
Assets & Savings
Lenders want to see that you have reserves — typically 2-3 months of mortgage payments in savings after closing. Gift funds from family are acceptable with proper documentation.
I work with several great local lenders and can connect you with the right one for your situation.