Most Common Questions First-Time Homebuyers Ask - Answered by a Florida Mortgage Loan Expert

1. How Much House Can I Actually Afford?

The general rule is that your monthly mortgage payment (including taxes, insurance, and HOA fees if applicable) should not exceed 28–31% of your gross monthly income. Your total debt payments—including credit cards, car loans, and student loans—should stay below 43% of your income in most cases.

At Cornerstone First Mortgage we offer programs which allow more flexibility, especially for first-time homebuyers. Reach out to get a customized affordability estimate based on your income, credit, and down payment amount.

2. What Credit Score Do I Need to Qualify for a Mortgage?

Conventional Loans require a minimum credit score of 620, but there are options for lower scores:

• FHA loans can accept scores as low as 580 if your down payment is 3.5%.  With a 10% down payment, Cornerstone First Mortgage can offer an FHA loan with a score as low as 500 (conditions apply)

• Conventional loans typically require 620 or higher.

• VA and USDA loans may allow more flexible credit requirements, depending on the lender.

• Programs that offer alternative income documentation have different requirements.

That said, a higher credit score can save you thousands over the life of your loan by lowering your interest rate.

3. How Much Money Do I Need for a Down Payment?

This depends on the loan type:

• FHA: As little as 3.5% down

• Conventional: 3–5% down for first-time buyers

• VA and USDA: $0 down payment for eligible borrowers

In Florida, you may also qualify for down payment assistance programs like Florida Housing Bond or the Hometown Heroes program which can offer  up to $35,000 in down payment assistance.

4. What Are the Minimum Financial Requirements to Buy a Home?

Most lenders look at:

• Stable income (usually 2+ years with the same employer or in the same industry)

• Debt-to-income (DTI) ratio under 43% (some programs allow up to 50%)

• Cash reserves: Some programs require 1–2 months of reserves after closing

• Proof of funds for down payment and closing costs, unless using a 0% down loan

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5. Can I Buy a Home With No Money Down?

Yes! There are two primary zero down payment loan options:

• VA loans (for veterans, active-duty service members, and eligible spouses)

• USDA loans (for rural and some suburban areas—even parts of Polk and Lake Counties!)

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Additionally, Florida offers down payment assistance that can cover your upfront costs even if you don’t qualify for a zero-down loan.

6. What’s the Difference Between Pre-Qualification and Pre-Approval?

• Pre-qualification is an estimate based on self-reported information. It’s helpful for getting a ballpark idea of what you can afford.

• Pre-approval is more in-depth. It involves a credit check, income verification, and financial review. A pre-approval letter shows sellers you’re serious and financially ready—making your offer more competitive.

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7. How Do Lenders Determine the Maximum Loan Amount I Can Afford?

Lenders look at:

• Your gross monthly income

• Your current debts (car loans, credit cards, student loans)

• Your credit score

• Your down payment amount

• Loan type and term

They calculate your debt-to-income ratio (DTI) and use that to set your borrowing limit. A lower DTI = a higher approved loan amount.

8. What Factors Influence My Mortgage Interest Rate?

Several factors affect your rate:

• Credit score

• Loan type (FHA, conventional, etc.)

• Down payment size

• Loan amount

• Length of the loan (15 vs. 30 years)

• Market conditions and the Federal Reserve’s rate policies

Improving your credit score and increasing your down payment can help you secure a better rate.

Final Thoughts

Buying your first home in Florida doesn’t have to be overwhelming. With the right guidance and local expertise, you can move forward with confidence and clarity.

🏡 Thinking about buying a home in Miami-Dade, Broward, Orange, Polk, or Lake County? Let’s talk! I can walk you through loan options, pre-approval, and programs designed just for first-time buyers.

Let’s Connect!
📞 Call/text me at 305-790-4222
📧 Email: LCuervo@cfmtg.com
📍 Serving Florida statewide with a focus on South and Central Florida