Understanding Your Options
Mortgage Basics for Northeast Florida Buyers
I am not a lender, and rates change week to week — so this is not a quote. It is the plain-English overview I walk every buyer through before we start touring, so the loan conversation makes sense before you are sitting across from a lender.
The Main Options
Common Loan Types
Conventional Loans
Not backed by a government agency, typically requiring stronger credit. Down payments can go as low as 3% for qualified first-time buyers, though 20% avoids private mortgage insurance.
FHA Loans
Government-backed with more flexible credit requirements and down payments as low as 3.5%. A common choice for buyers early in their homeownership journey.
VA Loans
Available to eligible veterans, active-duty service members, and some surviving spouses — 0% down and no private mortgage insurance, with competitive rates. Widely used here given Jacksonville's military presence.
USDA Loans
Zero-down financing for eligible rural and some suburban properties. Parts of Clay County and areas outside the immediate Jacksonville metro can qualify — worth asking a lender to check a specific address.
A Distinction That Matters
Pre-Qualification vs. Pre-Approval
A pre-qualification is a quick estimate based on numbers you provide, with nothing verified. A pre-approval means a lender has pulled your credit and verified income and assets. Only a pre-approval carries real weight when we submit an offer — and in communities like Nocatee or Ponte Vedra, where a desirable listing can draw multiple offers in the first weekend, that distinction can decide whether your offer even gets a serious look.
Get Pre-Approved Before You Tour
It takes most lenders a day or two to issue a pre-approval letter. Doing this before you start touring means you can move immediately when the right home shows up — instead of scrambling while someone else writes the winning offer.
Under the Hood
What Actually Affects Your Rate
Credit score
The single biggest factor in the rate you are offered. Even a 20-40 point difference in credit score can meaningfully change your rate.
Down payment size
A larger down payment generally means a lower rate and, past 20%, eliminates private mortgage insurance entirely.
Loan type and term
A 15-year loan typically carries a lower rate than a 30-year loan, at the cost of a higher monthly payment.
Discount points
Paying points upfront buys down your rate. Whether that makes sense depends on how long you plan to stay in the home — ask your lender for the break-even math.
Debt-to-income ratio
Lenders look at your total monthly debt relative to income, not just your credit score, when determining what you qualify for.
Property type
Condos, especially in certain buildings, can carry different rate and approval requirements than single-family homes.
Beyond Principal and Interest
The Florida-Specific Math
Your monthly payment is not just principal and interest. Florida property insurance varies significantly by flood zone, roof age, and distance to the coast — get a real quote before you are under contract, not after. In much of St. Johns County, factor in HOA dues and CDD assessments too, which fund community infrastructure and amenities separately from your mortgage. I build the full picture with every buyer before we start touring, so the number you budget for is the number you actually pay.
Want an Introduction to a Lender I Trust?
I work with a handful of local lenders who explain things clearly and close on time. Happy to make an introduction — no obligation.