How much money do I need for a down payment?

It depends on the loan. FHA loans often need 3.5% down. Some conventional loans start at 3% down. VA and USDA loans can be zero down if you qualify. You also need money for closing costs, taxes, and insurance. A loan officer can help you plan the exact amount.

Can I get help paying my down payment or closing costs?

Yes, help is often available. It may come from state or local programs, gift money from family, seller credits, or lender credits. Each type of help has its own rules. We can show you which ones you may qualify for.

Will checking my mortgage options hurt my credit?

Just talking to us does not hurt your credit. A credit check is only needed if you want a real preapproval. We will always tell you before we pull credit.

How long does a preapproval last?

Most preapprovals last a few months. Rates, credit, and income can change, so we may update your file if you have not found a home yet. It only takes a few minutes to refresh.

Can I qualify if I am self-employed?

Yes. Many self-employed buyers qualify. We just need to show that your income is steady and likely to continue. Tax returns and bank statements usually tell that story.

What is mortgage insurance?

Mortgage insurance is an extra fee that protects the lender if a loan is not paid back. It is common on low down payment loans. Once you build enough equity, it can often be removed on many programs.

What is the difference between prequalified and preapproved?

Prequalified is a quick guess based on what you tell us. Preapproved is stronger — we check your credit, income, and savings, then give you a written letter. Sellers in Florida usually want a preapproval, not just a prequalification.

Should I wait for lower interest rates before buying?

Trying to time rates can cost you more than it saves. Home prices and rent often go up while you wait. If the payment fits your budget today, you can always refinance later if rates fall.

Learning Center

First-Time Homebuyers

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Start Here

From “Where Do I Start?” to “I’m Ready to Apply”

Buying your first home can feel like a lot at once. You have to think about how much you can afford, how much money you may need, which loan is best for you, and when you are ready to apply. The good news is that you do not need to learn every rule before you begin. You just need a clear path, honest answers, and a lender who will compare your choices instead of pushing one loan on everyone.

This page is here to guide you from learning to applying. You can read a little at a time. When you are ready, we will help you take the next step and get preapproved so you can shop with confidence.

Step 1

Educate How a Mortgage Loan Works

Before you look at homes, spend a little time learning how a home loan works. Most first-time buyers wish they had learned a few simple words before they started — words like escrow, PMI, and closing costs. When you know these words, you can ask better questions and feel more sure of your choices.

You can read our step-by-step loan process guide to see what happens from start to finish, use the mortgage glossary to look up any word you do not know, and browse the mortgage FAQ for answers to the most common questions. If you want to know how PMI and MIP work, we cover that in mortgage insurance explained.

Step 2

Get Your Money Ready

About two months before you apply is a great time to get your money in order. Try not to open new credit cards, make big purchases, or change jobs during this time. Small choices now can make a big difference when a lender looks at your file later.

Start with our preapproval checklist so you know what to expect. Then see what documents you’ll need — usually pay stubs, tax returns, bank statements, and a photo ID. If you want to raise your credit score first, take a look at understanding your credit and simple ways to improve it. Had a past bankruptcy or foreclosure? You may still qualify sooner than you think — read buying after a credit event.

Step 3

Compare Your Loan Choices

There is no single best loan. The best loan for you depends on your credit, your savings, your income, and the home you want to buy. Many first-time buyers pick the first loan they hear about and end up paying more over time. A quick side-by-side can save you thousands.

The let’s compare loan programs page shows FHA, conventional, VA, and USDA side by side. You can also read about conventional loans (as low as 3% down for strong credit), FHA loans (3.5% down and easier credit rules), VA loans (zero down for eligible military and veterans), and USDA loans (zero down in many small-town and rural Florida areas).

Step 4

Find the Programs That Fit You

On top of the main loans, Florida has many special programs that can help first-time buyers. Some help with the down payment. Some lower your rate. Some are made for people in certain jobs, like teachers, nurses, first responders, or doctors.

To see what may fit you, visit our down payment assistance page or learn how down payment help works. If you work in a Florida workforce role, check out Hometown Heroes. Medical professionals can look at physician loan programs. And if the home you love is above normal loan limits, see jumbo loan programs.

Step 5

Take the Next Step

The last step is the easiest. Turn what you have learned into a real preapproval so you can shop with confidence and make offers Florida sellers take seriously. Our licensed loan officers walk you through it in plain English. There is no pressure and no cost to talk with us.

Most first-time buyers finish their preapproval within one to three days after sending in their documents. When you are ready, use the buttons below to get started or to speak with a real person.

Common Myths

Things First-Time Buyers Often Get Wrong

You do not always need 20% down. Many buyers use loans with much lower down payments. Some conventional loans start at 3%, FHA starts at 3.5%, and down payment help can lower it even more.

You do not need perfect credit. Different loans allow different scores. A lower score may change your rate or terms, but it does not always mean you cannot buy a home.

Prequalified and preapproved are not the same. Prequalified is a quick guess. Preapproved is stronger and based on real documents.

The down payment is not the only money you need. Plan for closing costs, taxes, insurance, and a small amount for moving or small repairs.

You may still count as a first-time buyer. Most programs count anyone who has not owned a home in the last three years. So even past homeowners may qualify again.

First-Time Homebuyer Questions

Ready When You Are

What Would You Like to Do Next?

Pick the option that fits where you are today. There is no pressure and no cost to talk with us.

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Disclaimer

Educational content only, not a commitment to lend. Loan program availability, eligibility, interest rates, and down-payment-assistance funding are subject to change without notice. All loans subject to credit approval, income verification, property qualification, and program guidelines. 1st Florida Lending is an Equal Housing Lender.

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