Question 1

What credit score do I need to buy a home in Florida?

Accepted Answer

580+ for FHA, 620+ for conventional, 580+ for VA, and 640+ for USDA are common minimums. Higher scores earn better pricing.

Question 2

Do mortgage lenders use the same FICO score I see online?

Accepted Answer

No — mortgage lenders use FICO 2, 4, and 5. Consumer apps typically show FICO 8 or VantageScore.

Question 3

How many credit inquiries are too many?

Accepted Answer

Multiple mortgage inquiries within 45 days count as one. Non-mortgage inquiries can chip away at your score.

Question 4

Can I qualify with a recent bankruptcy?

Accepted Answer

Yes — waiting periods vary. FHA is 2 years from Chapter 7 discharge; conventional is 4 years.

Question 5

Will paying off collections raise my score?

Accepted Answer

Sometimes — but paying can also update the date and temporarily lower the score. Get advice first.

Question 6

Can I use overtime and bonus income?

Accepted Answer

Usually — with a 2-year history and continuation likelihood.

Question 7

How is commission income calculated?

Accepted Answer

Typically averaged over the last 2 years.

Question 8

Can I count rental income from a property I already own?

Accepted Answer

Yes — usually 75% of gross rents from a lease or Schedule E.

Question 9

Do I need to be at my current job 2 years?

Accepted Answer

Not always — recent grads and industry moves are considered case by case.

Question 10

Are Social Security and pension income usable?

Accepted Answer

Yes — and often grossed up because they may be non-taxable.

Question 11

How much do I need to put down?

Accepted Answer

As little as 0% (VA/USDA), 3% (conventional first-time), or 3.5% (FHA).

Question 12

Can I use a gift for the down payment?

Accepted Answer

Yes — from most family members, with a signed gift letter and source documentation.

Question 13

Do I need reserves after closing?

Accepted Answer

Sometimes — 2–6 months of housing payments depending on program and loan size.

Question 14

Can down payment assistance be combined with FHA?

Accepted Answer

Yes — many Florida DPA programs pair with FHA financing.

Question 15

Do I need to prove where the down payment came from?

Accepted Answer

Yes — 2 months of statements and paper trails on large deposits.

Question 16

What's the max FHA loan amount in Florida?

Accepted Answer

Varies by county — most counties align to the FHA floor; higher-cost counties are higher.

Question 17

Does FHA MIP go away?

Accepted Answer

Only if you put 10% down (then it drops after 11 years). Otherwise it stays for the life of the loan.

Question 18

Can I use FHA on a duplex?

Accepted Answer

Yes — up to 4 units as long as one is your primary.

Question 19

Can I have two FHA loans at once?

Accepted Answer

Rarely — only in specific circumstances like relocation.

Question 20

Is 20% down required for conventional?

Accepted Answer

No — programs allow 3%–5% down, though PMI applies below 20% equity.

Question 21

When does PMI drop off?

Accepted Answer

Automatically at 78% LTV based on original amortization.

Question 22

Are conventional rates better than FHA?

Accepted Answer

Not always — depends on credit tier. Strong credit usually favors conventional.

Question 23

Do VA loans really require zero down?

Accepted Answer

Yes, up to the county loan limit — beyond that, a small down payment on the excess.

Question 24

Is there mortgage insurance on VA?

Accepted Answer

No — there's an upfront funding fee instead (waived for many disabled veterans).

Question 25

Can I reuse my VA entitlement?

Accepted Answer

Yes — through restoration after paying off a prior VA loan.

Question 26

Can I qualify without tax returns?

Accepted Answer

Yes — through bank statement, 1099-only, P&L, DSCR, or asset-based programs.

Question 27

How many months of bank statements are required?

Accepted Answer

Usually 12 or 24 months, personal or business depending on program.

Question 28

Can I qualify in year one of self-employment?

Accepted Answer

In limited cases — usually with prior industry experience.

Question 29

Are alt-doc rates higher?

Accepted Answer

Usually — a modest premium over agency rates for the flexibility.

Question 30

What is a DSCR loan?

Accepted Answer

A loan qualified off the property's rent — no personal income docs required.

Question 31

Can I finance a rental in an LLC?

Accepted Answer

Yes — most DSCR and portfolio lenders prefer LLC vesting.

Question 32

How many rentals can I finance?

Accepted Answer

Agency caps at 10; non-QM programs are typically unlimited.

Question 33

Are short-term rentals financeable?

Accepted Answer

Yes — via specific DSCR programs that accept STR income.

Question 34

How soon can I refinance?

Accepted Answer

Rate-and-term often immediately; cash-out typically after 6–12 months seasoning.

Question 35

Do I need equity to refinance?

Accepted Answer

Depends on program — some allow high LTVs, especially FHA and VA streamlines.

Question 36

Can I skip closing costs?

Accepted Answer

Yes — a no-cost refi trades slightly higher rate for lender-covered fees.

Question 37

Will a refi hurt my credit?

Accepted Answer

The inquiry may nudge your score down briefly, then it recovers.

Question 38

What are typical closing costs in Florida?

Accepted Answer

2%–5% of the loan amount. Florida charges doc stamps and intangible tax.

Question 39

Can the seller pay my closing costs?

Accepted Answer

Yes — subject to program limits, typically 3%–6%.

Question 40

What are Florida documentary stamps?

Accepted Answer

A state tax on the note ($0.35 per $100 borrowed) paid at closing.

Question 41

What is Florida intangible tax?

Accepted Answer

A tax on the mortgage ($0.002 per $1 of loan amount).

Question 42

What is an escrow account?

Accepted Answer

A servicer-held account that pays your property taxes and insurance monthly.

Question 43

Can I waive escrow?

Accepted Answer

Sometimes, at lower LTVs, with a small pricing adjustment.

Question 44

Why did my payment go up?

Accepted Answer

Usually a property tax or insurance increase caught during the annual escrow analysis.

Question 45

How are mortgage rates set?

Accepted Answer

By the bond market, then adjusted for your credit, LTV, occupancy, and loan attributes.

Question 46

What is a rate lock?

Accepted Answer

A promise to hold your rate for a set period (30/45/60 days).

Question 47

Can I float down after locking?

Accepted Answer

Some lenders offer float-downs if rates drop meaningfully.

Question 48

What is PMI?

Accepted Answer

Private mortgage insurance — required on conventional loans above 80% LTV.

Question 49

What is MIP?

Accepted Answer

FHA's mortgage insurance premium — upfront plus monthly, often for the life of the loan.

Question 50

How do I get PMI removed?

Accepted Answer

Automatically at 78% LTV; earlier by request at 80% or with a new appraisal.

Question 51

Do I have to work with a bank?

Accepted Answer

No — brokers shop multiple wholesale lenders on your behalf, which often yields better pricing.

Question 52

What's the difference between pre-qual and pre-approval?

Accepted Answer

Pre-qualification is stated; pre-approval is verified.

Question 53

How long is a pre-approval valid?

Accepted Answer

Typically 60–90 days with refreshable documents.

Question 54

How long does closing take?

Accepted Answer

20–30 days for most purchases; faster with complete documentation.

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