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Florida Mortgage Frequently Asked Questions | Florida Mortgage FAQs
This knowledge base is designed for educational, concise, transparent, and helpful. When personalized mortgage advice or qualification is required.
Important: Mortgage programs, interest rates, guidelines, loan limits, down-payment requirements, property requirements, and eligibility standards can change. Information provided here is for general educational purposes. Actual financing options depend on the borrower’s qualifications, property, transaction, and current program guidelines.
1. What is Fidelity Home Group?
Fidelity Home Group is a Florida mortgage company headquartered in Orlando, Florida. We help homebuyers, homeowners, real estate investors, and self-employed borrowers explore mortgage options for purchasing and refinancing residential real estate.
2. What areas does Fidelity Home Group serve?
Fidelity Home Group specializes in Florida mortgage financing and works with borrowers throughout Florida. Program availability and licensing requirements may vary by transaction and location.
3. What types of mortgages does Fidelity Home Group offer?
Depending on eligibility and current program availability, mortgage solutions may include Conventional, FHA, VA, USDA, Jumbo, DSCR, Bank Statement, Non-QM, Asset Qualifier, Non-Warrantable Condo, Condotel, construction, bridge, land, home equity, and refinance programs.
4. Why should I choose Fidelity Home Group?
Our goal is to provide borrowers with more mortgage options, greater transparency, and a simpler way to evaluate financing based on their individual situation.
5. Does Fidelity Home Group work with first-time homebuyers?
Yes. We can help first-time buyers understand financing options, down payments, closing costs, pre-approval, and the mortgage process.
6. Does Fidelity Home Group work with real estate investors?
Yes. Investment-property financing may include conventional mortgages, DSCR loans, specialty investor programs, bridge loans, and other financing options.
7. Does Fidelity Home Group work with self-employed borrowers?
Yes. In addition to traditional mortgages, alternative-documentation programs may be available for eligible self-employed borrowers.
8. Can Fidelity Home Group help if another lender declined my mortgage?
Potentially. Mortgage guidelines vary among programs and lenders. We can review the reason for the previous decision and determine whether another financing option may be available.
9. Can Fidelity Home Group help with unusual or complex properties?
Potentially. We specialize in evaluating financing options for properties that may require additional expertise, including certain condominiums, non-warrantable condos, condotels, investment properties, and other specialty properties.
10. How do I contact Fidelity Home Group?
You can contact Fidelity Home Group through FidelityHomeGroup.com to speak with a mortgage professional about your financing needs.
11. How do I get started with a mortgage?
You can begin by completing a mortgage application or speaking with a Fidelity Home Group mortgage professional. We’ll evaluate your goals and discuss potential financing options.
12. How long does it take to complete a mortgage application?
Many borrowers can complete the initial application relatively quickly when their financial information is available. Complex income, investment, or property scenarios may require additional information.
13. Does applying for a mortgage obligate me to borrow?
No. Submitting an application allows your mortgage options to be evaluated. It does not obligate you to close a loan.
14. Should I apply before finding a house?
For most homebuyers, getting pre-approved before making an offer can be beneficial because it establishes a potential price range and identifies financing issues early.
15. Can I apply for a mortgage online?
Fidelity Home Group provides an online mortgage application option for borrowers who prefer to begin electronically.
16. What is mortgage pre-qualification?
Pre-qualification is an initial assessment of potential financing based on information provided by the borrower.
17. What is mortgage pre-approval?
Pre-approval generally involves a more detailed evaluation of your credit, income, assets, debts, and other qualifying information.
18. What’s the difference between pre-qualification and pre-approval?
Pre-qualification is generally an initial assessment, while pre-approval typically involves greater verification of the borrower’s financial information.
19. Why should I get pre-approved before shopping for a home?
Pre-approval can help establish your potential purchasing power, estimate financing requirements, identify an appropriate mortgage program, and demonstrate to sellers that you’ve begun the financing process.
20. Does pre-approval guarantee that my mortgage will close?
No. Final approval can depend on updated borrower documentation, underwriting, appraisal, title, insurance, property eligibility, and other requirements.
21. How long is my mortgage pre-approval valid?
There is no single universal expiration period. Credit reports and financial documents can become outdated, and your financial circumstances or mortgage guidelines can change. Your mortgage professional can update your pre-approval when necessary.
22. What documents do I need for mortgage pre-approval?
Depending on the program, documents may include identification, pay stubs, W-2s, tax returns, bank statements, asset statements, employment information, and information about existing debts or properties.
23. Do I need tax returns to get a mortgage?
Not always. Traditional programs may require tax returns in certain situations, while alternative-documentation programs may permit other methods of documenting qualifying income.
24. Why does underwriting need my bank statements?
Bank statements may be used to verify assets, funds needed for closing, reserves, income in certain programs, and the source of certain deposits.
25. Why am I being asked to explain a bank deposit?
Mortgage guidelines can require verification of certain deposits to establish an acceptable source of funds.
26. Why does the lender keep requesting documents?
Mortgage underwriting is a verification process. New documents can create additional questions or require updated documentation. Requests for additional documents are common and do not necessarily indicate a problem.
27. What credit score do I need for a mortgage?
There is no single credit-score requirement for every mortgage. Minimums vary by program, lender/investor guidelines, property, occupancy, loan-to-value ratio, and overall borrower profile.
28. Can I buy a house with less-than-perfect credit?
Potentially. Mortgage options exist for a range of credit profiles. A Fidelity Home Group mortgage professional can evaluate which programs may fit your circumstances.
29. Does applying for a mortgage affect my credit?
A mortgage credit inquiry can affect your credit score. The actual impact varies based on your overall credit profile and the applicable credit-scoring model.
30. Should I pay off my credit cards before applying?
Not automatically. Paying down debt can improve qualification in some circumstances, but reducing available cash can also affect your down payment, closing costs, or reserves. Discuss your situation with your mortgage professional first.
31. Can I open a new credit card while buying a home?
New credit can affect your credit score and debt-to-income ratio. Avoid significant credit changes during the mortgage process without first discussing them with your loan officer.
32. Can I buy a car before my mortgage closes?
A new car loan or lease can affect mortgage qualification. Speak with your mortgage professional before taking on significant new debt.
33. Can I qualify after bankruptcy?
Potentially. Eligibility depends on the bankruptcy type, discharge or dismissal date, credit history, mortgage program, and other factors.
34. Can I qualify after a foreclosure?
Potentially. Waiting periods and eligibility requirements vary by mortgage program and individual circumstances.
35. Do I need 20% down to buy a house?
No. Many mortgage programs allow eligible borrowers to purchase with less than 20% down.
36. Can I buy a home with 3% down?
Certain conventional programs may allow eligible borrowers to purchase with as little as 3% down.
37. Can I buy with 3.5% down?
FHA financing may allow a minimum 3.5% down payment for eligible borrowers who meet applicable requirements.
38. Are there zero-down mortgage programs?
Eligible VA and USDA borrowers may qualify for financing with no down payment, subject to program requirements.
39. Can my parents give me money for the down payment?
Many mortgage programs allow eligible gift funds from acceptable donors, subject to documentation requirements.
40. Can I use retirement funds for a down payment?
Depending on the account and mortgage program, eligible retirement assets may potentially be used. Consult your financial or tax professional regarding consequences of withdrawing retirement funds.
41. Can the seller help with my closing costs?
Many mortgage programs allow seller contributions toward eligible closing costs, subject to applicable limits.
42. What are mortgage closing costs?
Closing costs are expenses associated with obtaining the mortgage and completing the real estate transaction.
43. What expenses are included in closing costs?
Costs can include lender charges, appraisal, credit-related fees, title services, recording charges, taxes, insurance, prepaid interest, escrow funding, and other third-party charges.
44. How much are closing costs?
Closing costs vary significantly based on the property, loan amount, program, taxes, insurance, title charges, rate structure, and transaction.
45. Can I finance my closing costs?
Whether costs can be financed depends on the mortgage program and transaction. Refinances often provide more flexibility for financing eligible costs than purchases.
46. What are prepaid expenses?
Prepaids are generally amounts collected for expenses such as interest, property taxes, homeowners insurance, and initial escrow funding. They are different from many lender and third-party closing fees.
47. What are today’s mortgage rates?
Mortgage rates change frequently and vary by borrower and transaction. A personalized mortgage quote is the best way to evaluate your actual financing options.
48. Why aren’t mortgage rates the same for everyone?
Rates and pricing can depend on credit, loan program, property type, occupancy, loan amount, down payment/equity, term, rate-lock period, discount points, and market conditions.
49. What causes mortgage rates to rise and fall?
Mortgage rates are influenced by the bond and mortgage-backed securities markets, inflation expectations, employment data, economic growth, Federal Reserve policy expectations, and other financial-market conditions.
50. Does the Federal Reserve set mortgage rates?
No. The Federal Reserve does not directly set consumer mortgage rates. Fed policy can influence financial markets and borrowing costs, but mortgage rates are primarily market-driven.
51. What is a mortgage rate lock?
A rate lock generally protects an eligible interest rate for a specified period while the mortgage proceeds toward closing, subject to the terms of the lock.
52. What are mortgage discount points?
Discount points are an upfront cost that may be used to obtain a different interest rate. Whether paying points makes financial sense depends on your costs, savings, and expected time in the mortgage.
53. What’s the difference between interest rate and APR?
The interest rate represents the rate used to calculate interest on the loan. APR is a broader disclosure measure that incorporates the interest rate and certain finance charges according to applicable rules.
54. Should I wait for rates to fall before buying?
Rates are only one part of a home-purchase decision. Home prices, inventory, competition, seller concessions, your budget, and your long-term goals should also be considered.
55. What is included in a mortgage payment?
Depending on the loan, your housing payment can include principal, interest, property taxes, homeowners insurance, mortgage insurance, flood insurance, and association-related expenses.
56. What does PITI mean?
PITI stands for Principal, Interest, Taxes, and Insurance.
57. What is mortgage insurance?
Mortgage insurance can protect the lender or program against certain losses if the borrower defaults. Requirements vary by mortgage type and loan-to-value ratio.
58. Can mortgage insurance eventually be removed?
It depends on the mortgage program. Conventional and government-backed mortgage insurance requirements differ.
59. What is a conventional mortgage?
A conventional mortgage is a home loan that is not insured or guaranteed by a federal government agency such as FHA, VA, or USDA.
60. What is a conforming mortgage?
A conforming mortgage generally meets applicable Fannie Mae or Freddie Mac requirements, including loan-limit requirements.
61. Can conventional loans be used for second homes?
Yes, eligible second homes may be financed using conventional financing, subject to program requirements.
62. Can conventional loans finance investment properties?
Yes. Conventional financing can be available for eligible investment properties.
63. What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration.
64. Are FHA loans only for first-time buyers?
No. Eligible repeat buyers can also use FHA financing.
65. What is the minimum FHA down payment?
Eligible borrowers may qualify with a minimum down payment of 3.5%, subject to current FHA requirements.
66. Do FHA mortgages have mortgage insurance?
Yes. FHA mortgages generally include applicable upfront and annual mortgage insurance premiums.
67. Can I refinance an FHA mortgage?
Yes. FHA refinancing options may include rate-and-term, cash-out, and FHA Streamline programs, depending on eligibility.
68. What is an FHA Streamline refinance?
An FHA Streamline refinance is designed to simplify refinancing for eligible homeowners with an existing FHA-insured mortgage.
12. VA MORTGAGES
69. What is a VA mortgage?
A VA mortgage is a home loan backed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, and certain other eligible borrowers.
70. Can I get a VA mortgage with no down payment?
Eligible borrowers can potentially obtain 100% VA financing, subject to applicable requirements.
71. Do VA loans have monthly mortgage insurance?
VA loans do not have conventional monthly private mortgage insurance. A VA funding fee may apply unless the borrower qualifies for an exemption.
72. Can I use my VA benefit more than once?
Potentially. VA entitlement can be reused subject to applicable eligibility and entitlement requirements.
73. What is a VA IRRRL?
A VA Interest Rate Reduction Refinance Loan is a streamlined refinance program for eligible borrowers with an existing VA mortgage.
13. USDA MORTGAGES
74. What is a USDA mortgage?
USDA mortgages provide eligible borrowers with financing for qualifying properties in designated areas, subject to household income and other program requirements.
75. Does USDA offer 100% financing?
Eligible USDA borrowers may qualify for financing without a down payment.
76. Are USDA mortgages only for farms?
No. USDA residential mortgages are commonly used to purchase eligible homes in qualifying rural and suburban areas.
14. JUMBO MORTGAGES
77. What is a jumbo mortgage?
A jumbo mortgage generally refers to financing exceeding applicable conforming loan limits.
78. Do jumbo mortgages require excellent credit?
Jumbo underwriting can have stronger credit, asset, reserve, and documentation requirements, although requirements vary considerably between programs.
79. Can jumbo financing be used for luxury homes?
Yes. Jumbo financing is commonly used for higher-priced residential properties when the required loan amount exceeds conforming limits.
15. SELF-EMPLOYED MORTGAGES
80. Is it harder to get a mortgage when self-employed?
Self-employed borrowers can qualify for mortgages, but documenting income can be more complex because traditional underwriting often analyzes business and personal tax information.
81. What mortgage options exist for self-employed borrowers?
Depending on eligibility, options may include conventional mortgages, government-backed programs, Bank Statement mortgages, 1099 programs, P&L programs, Asset Qualifier programs, and other Non-QM financing.
82. Can I qualify without W-2 income?
Potentially. Several mortgage programs are specifically designed for borrowers whose income isn’t best represented by traditional W-2 employment.
16. BANK STATEMENT MORTGAGES
83. What is a Bank Statement mortgage?
A Bank Statement mortgage is an alternative-documentation program that can allow eligible self-employed borrowers to qualify using eligible bank deposits rather than relying solely on traditional tax-return income calculations.
84. Do Bank Statement mortgages require tax returns?
Many Bank Statement programs do not use tax returns to calculate qualifying income. Exact documentation requirements vary.
85. Do you offer 12-month Bank Statement mortgages?
Programs using 12 months of eligible bank statements may be available depending on current guidelines.
86. Do you offer 24-month Bank Statement mortgages?
Programs using 24 months of eligible bank statements may also be available.
87. Can business bank statements be used?
Certain programs allow eligible business bank statements, although qualifying deposits and applicable expense factors must be evaluated according to program guidelines.
88. Who is a good candidate for a Bank Statement mortgage?
Potential candidates include self-employed borrowers, entrepreneurs, business owners, independent professionals, and borrowers whose taxable income doesn’t fully reflect their available cash flow.
17. 1099 & P&L MORTGAGES
89. What is a 1099 mortgage program?
Certain alternative-documentation programs allow eligible borrowers to qualify using 1099 income rather than traditional W-2 income documentation.
90. What is a P&L mortgage program?
Certain specialty programs may permit eligible self-employed borrowers to document qualifying income using a profit-and-loss statement, subject to program requirements.
91. Can independent contractors qualify for a mortgage?
Yes. Independent contractors may have traditional and alternative-documentation mortgage options depending on how their income is earned and documented.
18. ASSET QUALIFIER / ASSET DEPLETION
92. What is an Asset Qualifier mortgage?
An Asset Qualifier mortgage can allow eligible borrowers to qualify using acceptable assets rather than relying exclusively on traditional employment income.
93. What is asset depletion?
Asset depletion is a qualification methodology in which eligible assets are converted into an amount that can be considered in determining qualifying income according to program rules.
94. Who may benefit from an Asset Qualifier mortgage?
Potential candidates include retirees, high-net-worth borrowers, investors, and individuals with substantial eligible assets but limited traditional employment income.
95. Can retirement assets be used to qualify?
Certain eligible retirement assets may be considered depending on the program, borrower’s age, accessibility of funds, and applicable guidelines.
19. DSCR INVESTMENT PROPERTY MORTGAGES
96. What is a DSCR mortgage?
A Debt Service Coverage Ratio mortgage is an investment-property financing program that generally evaluates the property’s rental income relative to its applicable housing debt rather than relying primarily on the borrower’s personal employment income.
97. What does DSCR stand for?
DSCR stands for Debt Service Coverage Ratio.
98. How is DSCR calculated?
Conceptually, DSCR compares eligible rental income with applicable property debt or housing expense. The exact calculation depends on program guidelines.
99. Do DSCR mortgages require tax returns?
Many DSCR programs do not require traditional personal-income documentation such as W-2s or tax returns to establish qualifying income.
100. Do I need a job to qualify for a DSCR mortgage?
DSCR programs generally focus on property cash flow rather than traditional employment income, although the borrower must satisfy all other applicable program requirements.
101. Can an LLC obtain a DSCR mortgage?
Many DSCR programs allow eligible business entities, including certain LLC structures.
102. Can DSCR loans finance short-term rentals?
Certain programs can finance eligible short-term rental properties. Property and rental-income requirements vary.
103. Can I use DSCR financing for an Airbnb property?
Potentially. Eligibility depends on the property, rental characteristics, valuation, market-rent documentation, program, and other requirements.
104. Can DSCR financing be used for a vacation rental?
Potentially. Some DSCR programs accommodate eligible investment properties operated as vacation rentals.
105. Can I cash out equity from a DSCR property?
Cash-out DSCR refinancing may be available for eligible investment properties and borrowers.
20. INVESTMENT PROPERTY FINANCING
106. Can Fidelity Home Group finance rental properties?
Yes. Multiple financing options may be available for eligible rental properties.
107. Can rental income help me qualify?
Yes. How rental income is calculated depends on the mortgage program.
108. Can I finance multiple investment properties?
Potentially. Property-count limitations and qualification rules depend on the financing program.
109. Can I finance a property owned by an LLC?
Certain investment-property and specialty programs allow eligible LLC ownership structures.
110. Can I refinance an investment property?
Yes. Rate-and-term and cash-out refinancing options may be available for qualifying investment properties.
21. FLORIDA CONDO FINANCING
111. Can Fidelity Home Group finance Florida condos?
Yes. We work with multiple financing options for eligible Florida condominium properties.
112. Why is condo financing different?
With a condominium, underwriting may evaluate both the individual borrower and the condominium project.
113. What is a warrantable condo?
Generally, a warrantable condominium project satisfies applicable agency/investor requirements for conventional financing.
114. What is a non-warrantable condo?
A non-warrantable condo is a condominium project that does not satisfy one or more applicable conventional agency requirements.
115. Does non-warrantable mean the condo cannot be financed?
No. Specialty mortgage programs may provide financing for eligible non-warrantable condominiums.
116. What can make a condo non-warrantable?
Potential issues can include short-term rentals, commercial space, litigation, insurance concerns, deferred maintenance, reserve requirements, developer control, delinquent association dues, investor concentration, ownership concentration, or other project characteristics.
117. Can Fidelity Home Group finance non-warrantable condos?
Specialty financing may be available for eligible non-warrantable condominium projects.
118. Why does the lender need information from the condo association?
Project underwriting may require information concerning insurance, budgets, reserves, assessments, litigation, occupancy, ownership, maintenance, and other project characteristics.
119. Can a special assessment affect condo financing?
Yes. A special assessment can require additional review regarding its purpose, amount, payment status, and potential impact on the condominium project and borrower.
120. Can condo litigation affect mortgage approval?
Yes. Certain litigation can affect project eligibility. The type and significance of the litigation must be evaluated under applicable program requirements.
121. Can condo insurance affect financing?
Yes. Condominium project insurance is an important part of project eligibility and can affect available financing.
122. Do Florida condo reserve requirements affect mortgages?
They can. Reserve funding, structural conditions, deferred maintenance, and other project characteristics may be evaluated during condo underwriting.
22. CONDOTEL FINANCING
123. What is a condotel?
A condotel generally combines individually owned condominium units with hotel-like characteristics, operations, or services.
124. Can I finance a condotel in Florida?
Potentially. Specialty financing programs may be available for eligible Florida condotel properties.
125. Why can condotels be difficult to finance?
Hotel operations, short-term rentals, rental management arrangements, commercial characteristics, and other factors can make many condotels ineligible for traditional agency financing.
126. Can I refinance a condotel?
Potentially. Specialty rate-and-term and cash-out refinancing options may be available depending on the property and borrower.
23. BRIDGE LOANS
127. What is a bridge loan?
A bridge loan is short-term financing designed to bridge the gap between an immediate transaction and a future source of funds.
128. Can I use a bridge loan to buy before selling my home?
Potentially. Depending on available equity and program requirements, bridge financing can help eligible borrowers purchase another property before completing the sale of an existing property.
129. Are bridge loans permanent mortgages?
Generally, no. Bridge loans are usually designed as short-term financing.
130. Can investors use bridge loans?
Yes. Bridge financing is frequently used by eligible real estate investors for time-sensitive transactions.
24. CONSTRUCTION-TO-PERMANENT FINANCING
131. What is a construction-to-permanent mortgage?
Construction-to-permanent financing combines the construction phase with longer-term mortgage financing after the home is completed.
132. What is a Single Close construction loan?
A Single Close program combines construction and permanent financing into one transaction rather than requiring separate closings.
133. What are the advantages of Single Close construction financing?
Potential advantages can include one qualification process, one closing, and a more streamlined transition from construction to permanent financing.
134. Can I build on land I already own?
Potentially. Existing land equity may be considered depending on the construction program and transaction.
135. Can VA financing be used to build a home?
VA construction financing may be available to eligible borrowers, subject to program, builder, property, and VA requirements.
136. Can manufactured or modular homes use construction financing?
Certain construction programs may accommodate eligible manufactured, modular, or site-built homes. Requirements vary.
25. LAND FINANCING
137. Does Fidelity Home Group offer land loans?
Land financing may be available for eligible properties and borrowers.
138. Can I finance vacant land?
Potentially. Financing requirements depend on the type of land, intended use, location, down payment, credit, and program.
139. Is a land loan the same as a mortgage?
No. Land financing generally has different down-payment, underwriting, valuation, and property requirements.
140. Can I finance land now and build later?
Potentially. The appropriate financing structure depends on your construction timeline and the available land and construction programs.
26. HOME EQUITY
141. What is home equity?
Home equity is generally the difference between your property’s current value and the debt secured by the property.
142. What is a HELOC?
A Home Equity Line of Credit is a revolving credit line secured by eligible equity in a property.
143. What is a home equity loan?
A home equity loan generally provides eligible borrowers with a lump-sum loan secured by available home equity.
144. What’s the difference between a HELOC and a home equity loan?
A HELOC generally functions as a revolving line of credit, while a home equity loan generally provides funds as a lump sum with scheduled repayment.
145. What can home equity funds be used for?
Depending on program requirements, borrowers commonly use home equity for renovations, debt consolidation, major purchases, education expenses, investment opportunities, or other financial needs.
146. Do I have to refinance my first mortgage to access equity?
Not necessarily. A HELOC or home equity loan may allow an eligible homeowner to access equity while leaving the existing first mortgage in place.
27. REFINANCING
147. What does refinancing a mortgage mean?
Refinancing replaces an existing mortgage with a new mortgage.
148. Why would someone refinance?
Common goals include changing the interest rate, reducing or restructuring payments, changing the loan term, accessing equity, consolidating eligible debt, or changing mortgage programs.
149. What is a rate-and-term refinance?
A rate-and-term refinance generally restructures the existing mortgage’s rate, term, or both without primarily being designed to extract substantial equity.
150. What is a cash-out refinance?
A cash-out refinance replaces an existing mortgage with a larger eligible mortgage and provides the borrower with proceeds from available equity.
151. How much equity can I cash out?
Maximum cash-out amounts depend on property value, occupancy, mortgage program, credit profile, loan-to-value limits, and other requirements.
152. Does refinancing always save money?
No. The benefit depends on the new rate and terms, closing costs, loan balance, expected time in the property, and your financial goals.
153. Do I need an appraisal to refinance?
Not always. Appraisal requirements depend on the transaction and mortgage program.
154. Can I refinance to consolidate debt?
Potentially. Cash-out refinancing or home-equity financing can sometimes be used to consolidate eligible debt. The overall costs and financial implications should be carefully considered.
28. DELAYED FINANCING
155. What is delayed financing?
Delayed financing is a strategy that may allow an eligible buyer who recently purchased a property with cash to obtain mortgage financing shortly after the purchase, subject to applicable program requirements.
156. Who uses delayed financing?
It can be useful for eligible buyers who use cash to make a competitive or time-sensitive purchase but later want to restore liquidity through mortgage financing.
29. FIX & FLIP FINANCING
157. What is a fix-and-flip loan?
Fix-and-flip financing is generally short-term financing designed for real estate investors purchasing and renovating properties for resale or another investment strategy.
158. Can renovation costs be financed?
Certain investor financing programs may incorporate eligible renovation costs into the financing structure.
159. Do fix-and-flip loans require traditional income documentation?
Requirements vary. Certain investor programs place greater emphasis on the property and investment transaction than traditional personal-income qualification.
30. FLORIDA-SPECIFIC QUESTIONS
160. What makes getting a mortgage in Florida different?
Florida transactions can involve unique considerations such as condominium requirements, property insurance, flood zones, windstorm exposure, coastal properties, CDDs, condotels, short-term rentals, investment properties, and community-specific assessments.
161. Does homeowners insurance affect mortgage qualification in Florida?
Yes. Insurance availability and cost can affect both property eligibility and the borrower’s total housing expense.
162. Do I need flood insurance in Florida?
Flood insurance requirements depend on the property’s flood-zone determination, mortgage requirements, and other factors.
163. What is a CDD in Florida?
A Community Development District is a special-purpose governmental entity commonly used to finance and maintain infrastructure and community improvements in certain Florida developments.
164. Can a CDD affect mortgage qualification?
Yes. Applicable CDD assessments may be considered as part of the property’s housing expense.
165. What is The Villages Bond?
Many properties within The Villages can have a bond associated with infrastructure development. Buyers should determine whether a property has an outstanding bond and understand the associated costs.
166. What is an amenity fee in The Villages?
The Villages has community-specific amenity fees associated with access to certain recreational and community services. Buyers should consider these expenses when evaluating the overall cost of homeownership.
167. Can Fidelity Home Group finance homes in The Villages?
Financing options may be available for eligible properties and borrowers purchasing or refinancing homes in The Villages.
168. Can Fidelity Home Group finance homes in the Florida Keys?
Financing may be available for eligible properties throughout the Florida Keys. Coastal properties can require additional review of insurance, flood, property type, and other considerations.
31. PROPERTY TYPES
169. Can I finance a single-family home?
Yes. Single-family homes are among the most commonly financed residential property types.
170. Can I finance a townhouse?
Yes, subject to the property’s legal classification and applicable program requirements.
171. Can I finance a condominium?
Yes, provided the borrower, unit, and condominium project satisfy the applicable program requirements or an appropriate specialty program is available.
172. Can I finance a manufactured home?
Certain mortgage programs allow financing for eligible manufactured homes that meet applicable property and program requirements.
173. Can I finance a modular home?
Yes. Eligible modular homes may qualify for financing depending on the program and property characteristics.
174. Can I finance a multi-unit property?
Eligible two-, three-, and four-unit residential properties may qualify under certain mortgage programs.
175. Can I finance a second home in Florida?
Yes. Eligible second homes may qualify under conventional, jumbo, or specialty mortgage programs.
32. UNDERWRITING
176. What is mortgage underwriting?
Underwriting is the process of determining whether the borrower, property, and transaction satisfy the requirements of the mortgage program.
177. What is conditional approval?
Conditional approval generally means underwriting has reviewed the mortgage but requires additional documentation or conditions before final approval.
178. Does conditional approval mean I’m approved?
It is an important milestone, but outstanding conditions must still be satisfied before final approval.
179. What can cause a mortgage to be denied during underwriting?
Potential issues can include changes in credit, employment, income, assets, debt, property eligibility, appraisal, insurance, documentation, or failure to satisfy program requirements.
180. What should I avoid during underwriting?
Avoid significant financial or employment changes without consulting your mortgage professional, including new loans, new credit cards, large purchases, unexplained transfers, or changing jobs.
33. APPRAISALS
181. What is a home appraisal?
An appraisal is an independent professional opinion of a property’s value performed for the mortgage transaction.
182. Why does the lender require an appraisal?
The appraisal helps establish the property’s value and may also address applicable property requirements.
183. What happens if the appraisal is lower than the purchase price?
Depending on the contract and financing, options may include renegotiation, additional borrower funds, reconsideration of value when appropriate, restructuring the financing, or exercising applicable contractual rights.
184. Can I choose my own appraiser?
Mortgage appraisal independence requirements generally restrict how borrowers, loan officers, and other interested parties select or influence the appraiser.
34. EMPLOYMENT & INCOME CHANGES
185. Can I change jobs during the mortgage process?
A job change can affect qualification. Contact your Fidelity Home Group mortgage professional before changing jobs whenever possible.
186. What happens if my income changes before closing?
Income changes can affect qualification and should be reported to your mortgage professional.
187. Can overtime or bonus income be used?
Potentially. The income generally must satisfy applicable history, stability, documentation, and continuance requirements.
188. Can commission income be used?
Yes, when it satisfies applicable mortgage-program requirements regarding history, documentation, and stability.
189. Can Social Security or retirement income be used?
Eligible documented retirement, pension, Social Security, and other qualifying income may be considered depending on the mortgage program.
190. Can alimony or child support be used as qualifying income?
Potentially, when the borrower chooses to disclose it and the income satisfies applicable documentation, receipt, and continuance requirements.
35. DEBT-TO-INCOME RATIO
191. What is debt-to-income ratio?
Debt-to-income ratio, or DTI, compares applicable monthly debt obligations with qualifying monthly income.
192. What debts count toward DTI?
Depending on the program, obligations can include housing expenses, auto loans, credit cards, student loans, personal loans, child support, alimony, and other recurring liabilities.
193. What is the maximum DTI for a mortgage?
There is no universal maximum applicable to every borrower. Acceptable DTI depends on the mortgage program and overall underwriting profile.
36. CLOSING
194. What happens at mortgage closing?
Required mortgage and real estate documents are executed, applicable funds are transferred, and the transaction proceeds toward completion.
195. What is a Closing Disclosure?
For transactions subject to the applicable requirements, a Closing Disclosure provides important final information about the mortgage terms, payment, closing costs, and cash required to close.
196. How much money should I bring to closing?
Your final Closing Disclosure or settlement documentation identifies the applicable amount required from you.
197. Can I bring cash to closing?
Generally, closing agents require approved forms of payment rather than physical cash. Follow the closing agent’s instructions and independently verify wiring instructions because real estate wire fraud is a serious risk.
198. When do I get the keys?
The timing depends on funding, recording, the purchase agreement, and local closing practices.
37. AFTER CLOSING
199. When is my first mortgage payment due?
Your loan documents identify your exact first payment date.
200. Will my mortgage payment ever change?
It can. Adjustable interest rates, property taxes, homeowners insurance, flood insurance, mortgage insurance, and escrow adjustments can cause payment changes.
201. Can my mortgage be transferred to another servicer?
Yes. Mortgage servicing rights can be transferred. Borrowers receive applicable notices explaining where future payments should be sent.
202. Should I monitor mortgage rates after closing?
It can be helpful. Changes in interest rates, property values, equity, or your financial situation may create future refinancing or home-equity opportunities.
38. COMMON MORTGAGE MYTHS
203. Do I need perfect credit to get a mortgage?
No. Mortgage programs accommodate a range of eligible credit profiles.
204. Do I always need 20% down?
No. Many mortgage programs allow substantially smaller down payments for eligible borrowers.
205. Are FHA loans only for first-time homebuyers?
No.
206. Are VA loans only available once?
No. Eligible borrowers may be able to use VA loan benefits multiple times.
207. Does being self-employed prevent me from getting a mortgage?
No. Both traditional and alternative-documentation options may be available.
208. Does a non-warrantable condo mean I can’t get financing?
No. Specialty financing may be available.
209. Does a previous mortgage denial mean no lender can help me?
No. Programs and underwriting requirements vary. Another financing strategy may be available depending on why the previous loan was declined.
39. QUESTIONS DURING THE HOME SEARCH
210. Should I call my loan officer before making an offer?
Yes. It can be helpful to review the property’s price, taxes, insurance, HOA/CDD costs, and expected financing before submitting an offer.
211. Should I send my loan officer a property I’m considering?
Yes. Property characteristics can affect mortgage eligibility and monthly payment, particularly for condominiums, investment properties, and specialty properties.
212. What happens if the home price changes?
Contact your mortgage professional. A different price can affect the loan amount, down payment, cash required, payment, and qualification.
213. Can seller concessions help reduce my cash needed?
Potentially. Eligible seller concessions may help pay certain closing costs subject to program limits.
More Options. More Transparency. A Simpler Mortgage Experience.
Whether you’re purchasing your first Florida home, moving, refinancing, investing in real estate, buying a condominium, building a home, or looking for an alternative mortgage solution, Fidelity Home Group can help you explore mortgage financing options based on your individual situation.
When your ready to start your Bridge Loan, we are experts to guide you through the entire process, the first step is getting you pre-approved. You can click on the button below or apply online; if you prefer to speak with one of our Mortgage Experts, we would be happy to speak with you at 888 259 2257.