Dreaming of owning your first home in the Sunshine State? You're not alone. Florida continues to attract thousands of first-time home buyers every year, drawn by warm weather, no state income tax, and diverse communities from coast to coast. But the journey from renter to homeowner can feel overwhelming, especially when navigating mortgage options, down payment requirements, and the competitive Florida market.

The good news? With the right information and guidance, buying your first home in Florida is more achievable than many people think. Whether you're looking at a cozy condo in Hollywood, a family home in Tampa, or a beach property in the Panhandle, this comprehensive guide walks you through every step of the process.

City First Mortgage Corp has been helping Floridians achieve homeownership since 1988. Based in Hollywood, Florida, our team understands both the opportunities and challenges facing first-time buyers in today's market. This guide covers everything from understanding available programs to closing on your dream home.

Why Florida is a Smart Choice for First Time Home Buyers

Florida offers some unique advantages that make it particularly attractive for first-time buyers. Understanding these benefits helps explain why so many people choose to put down roots in the Sunshine State.

The lack of state income tax means more money stays in your pocket each month, which translates to more funds available for your mortgage payment and home-related expenses. This financial advantage makes a real difference when lenders calculate your debt-to-income ratio during the approval process.

Florida's housing market offers incredible diversity. First-time buyers can find everything from affordable starter homes in growing inland communities to beachfront condos and everything in between. Cities like Jacksonville, Tampa, and Orlando offer particularly strong value propositions with robust job markets and reasonable home prices. Even in premium areas like Hollywood and Fort Lauderdale, there are options for buyers at various price points.

The state's strong and growing economy continues to create jobs across multiple sectors including technology, healthcare, tourism, and finance. This economic stability matters when you're making a 15 or 30-year commitment to a mortgage. Florida's population growth also tends to support property values over time, making homeownership a solid investment.

Beyond the financial considerations, there's the lifestyle. Year-round sunshine, beaches, world-class entertainment, no winter heating bills, and access to outdoor activities make Florida an appealing place to build a life. Many first-time buyers find that their quality of life improves significantly after making the move.

Florida's homestead exemption also provides substantial tax benefits to homeowners. This program can save qualifying homeowners up to $50,000 off their property's assessed value for tax purposes, plus additional benefits that protect against rapid assessment increases. This matters significantly to your long-term affordability.

Florida First Time Home Buyer Programs and Assistance

One of the biggest misconceptions about buying a home is that you need a 20% down payment saved up. While that used to be the standard, today's first-time buyers have access to numerous programs designed to make homeownership more accessible.

Federal Programs Available in Florida

FHA Loans remain one of the most popular choices for first-time buyers throughout Florida. These loans, insured by the Federal Housing Administration, require as little as 3.5% down for borrowers with credit scores of 580 or higher. Borrowers with scores between 500-579 can still qualify but need 10% down. FHA loans are particularly helpful for buyers who don't have perfect credit or large down payments saved.

The trade-off is mortgage insurance, which protects the lender if you default. You'll pay an upfront mortgage insurance premium (typically 1.75% of the loan amount) plus monthly mortgage insurance. However, for many first-time buyers, FHA loans provide the easiest path to homeownership. Loan limits vary by county in Florida, so it's important to check current limits for your target area.

VA Loans offer incredible benefits for eligible veterans, active-duty service members, and some surviving spouses. These loans require zero down payment, have no mortgage insurance requirement, and typically offer competitive interest rates. Florida has a large veteran population, and VA loans have helped thousands of service members and their families achieve homeownership.

VA loans do charge a funding fee (unless you're exempt due to disability), but this can be rolled into the loan amount. The Florida housing market, particularly areas near military installations, sees significant VA loan activity.

USDA Loans work well for buyers interested in eligible rural and suburban areas of Florida. These loans, backed by the U.S. Department of Agriculture, offer zero down payment options for qualified buyers in designated areas. Many people assume "rural" means farmland, but numerous suburban communities throughout Florida qualify for USDA financing.

USDA loans consider household income limits and property location requirements. If you're looking outside major metropolitan areas, this program is worth exploring.

Florida-Specific Programs

Florida Housing Finance Corporation administers several programs specifically designed to help Florida residents become homeowners. These programs change periodically, so working with a knowledgeable lender who stays current on available options is essential.

Florida Assist provides down payment and closing cost assistance to eligible first-time buyers. This program can be combined with various loan types to help reduce the upfront cash needed to purchase a home. The assistance typically comes as a second mortgage with specific repayment terms.

HFA Preferred offers a conventional loan option with down payment assistance for qualified buyers. This program provides flexibility for buyers who might not fit traditional lending criteria but have the income and stability to support homeownership.

Hometown Heroes Program deserves special attention. This program assists teachers, educators, law enforcement officers, firefighters, healthcare workers, childcare employees, and active military in purchasing homes in Florida. Given that these professions often face the challenge of serving communities they can't afford to live in, Hometown Heroes helps bridge that gap. Benefits include down payment and closing cost assistance.

Many Florida counties also offer their own down payment assistance programs. Broward County, where Hollywood is located, periodically offers programs for first-time buyers. These local programs often have specific income limits and property location requirements but can provide valuable assistance when available.

How Much Home Can You Afford in Florida?

One of the first questions every first-time buyer asks is: "How much house can I actually afford?" The answer depends on several factors, and it's crucial to be realistic from the start. Buying too much house can lead to financial stress, while being overly conservative might mean missing out on the right property.

Lenders typically use the 28/36 rule as a guideline. Your monthly housing costs (including mortgage principal, interest, property taxes, and insurance) shouldn't exceed 28% of your gross monthly income. Your total monthly debt payments (housing costs plus car loans, student loans, credit cards, etc.) shouldn't exceed 36% of your gross income.

However, Florida has some unique cost considerations that affect affordability calculations.

Property taxes vary significantly by county. Broward County, for example, has different tax rates than neighboring Miami-Dade or Palm Beach counties. When comparing home prices across Florida, always factor in the local property tax rate. Some counties offer better value once you account for taxes. The homestead exemption helps reduce this burden for primary residences.

Homeowners insurance costs more in Florida than in most other states. Hurricane risk means premiums are higher, sometimes significantly so depending on your location. Coastal properties typically carry higher premiums than inland homes. When budgeting for a home purchase, get actual insurance quotes for the type and location of property you're considering. Many first-time buyers are shocked by insurance costs if they haven't researched this ahead of time.

HOA fees are extremely common in Florida. Many condos, townhomes, and single-family home communities have homeowners associations that charge monthly or quarterly fees. These fees can range from under $100 to several hundred dollars per month. Some HOA fees include amenities like pools, landscaping, and exterior maintenance. Others simply cover basic community upkeep. Always factor HOA fees into your affordability calculations, as they're not optional.

Flood insurance may be required depending on your property's location. If you're in a FEMA-designated flood zone and have a mortgage, flood insurance is mandatory. Even if you're not in a high-risk zone, flood insurance might be worth considering given Florida's weather patterns. This adds another line item to your monthly housing costs.

Utilities in Florida's hot climate can be substantial, especially during summer months. Air conditioning isn't a luxury—it's a necessity. When touring homes, ask about average utility costs. Older homes with poor insulation or outdated AC systems will cost more to cool than newer, energy-efficient properties.

Beyond housing costs, you need money for the down payment and closing costs. Down payments vary by loan type as discussed earlier, but closing costs typically run 2-5% of the loan amount in Florida. These include title insurance, attorney fees (in some cases), appraisal, inspection, and various lender and government fees.

You also need reserves. Life happens—AC units break, roofs leak, and appliances die. Having an emergency fund separate from your down payment and closing costs is essential. Most financial advisors recommend 3-6 months of expenses in savings.

Steps to Buying Your First Home in Florida

Understanding the home buying process removes much of the stress and uncertainty. Here's what to expect on your journey to homeownership in Florida.

Step 1: Check Your Credit and Finances

Before anything else, know where you stand financially. Pull your credit reports from all three major bureaus (you can do this free annually at AnnualCreditReport.com). Review them carefully for errors and address any issues you find.

Your credit score significantly impacts your mortgage options and interest rate. Different loan types have different minimum score requirements, but generally, scores of 620 or higher open up more options. If your score needs work, focus on paying bills on time, reducing credit card balances, and avoiding new credit applications.

Start saving aggressively for your down payment and closing costs. Set up automatic transfers to a dedicated savings account. Cut unnecessary expenses. Consider picking up side work or selling items you don't need. Every dollar saved gets you closer to your goal.

Importantly, avoid making major financial changes during this process. Don't buy a new car, open new credit cards, or make large purchases. Lenders scrutinize your finances, and major changes can derail your approval.

Step 2: Get Pre-Approved for a Mortgage

Pre-approval is different from pre-qualification. Pre-qualification gives a rough estimate based on basic information you provide. Pre-approval involves submitting documentation and having a lender verify your financial information, employment, and credit. The lender then issues a pre-approval letter stating the loan amount you qualify for.

In Florida's competitive markets, sellers and their agents take pre-approved buyers much more seriously than pre-qualified buyers. A pre-approval letter shows you're a serious buyer with verified financing ability. In multiple-offer situations, this can make the difference between your offer being accepted or rejected.

For pre-approval, you'll need:

• Two years of tax returns

• Recent pay stubs (typically last 30-60 days)

• Two months of bank statements

• Government-issued ID

• Social Security card

• Information about your debts and assets

Pre-approvals typically remain valid for 60-90 days, though this varies by lender. If your home search takes longer, you may need to update your pre-approval.

Get your pre-approval letter in as little as 24 hours. City First Mortgage makes the process simple and streamlined. With over 35 years of experience serving Florida buyers, we understand how to move quickly while ensuring accuracy. Apply online or call (954) 967-6600 to speak with a loan specialist today.

Step 3: Find a Real Estate Agent

While it's possible to buy a home without an agent, having professional representation makes the process much smoother, especially for first-time buyers. The seller typically pays the buyer's agent commission, so this expertise costs you nothing out of pocket.

Look for an agent with specific first-time buyer experience. They should be patient, willing to explain things, and understand that you're learning as you go. Local market knowledge is crucial—an agent who knows Hollywood's neighborhoods intimately will be more valuable than someone unfamiliar with the area.

Ask for references and interview a few agents before deciding. You'll be working closely with this person, so compatibility matters. Your agent should communicate in your preferred style (text, email, phone) and be responsive to your questions and concerns.

A good agent will also work well with your lender. City First Mortgage has worked with real estate agents throughout South Florida for over 35 years and has strong working relationships with professionals throughout the area.

Step 4: Start House Hunting in Florida

Now comes the exciting part—looking at homes! Use your pre-approval amount as a guide, but don't feel obligated to spend up to the maximum. Remember, you want to be comfortable with your monthly payment.

In Florida, you'll want to consider several location-specific factors:

Hurricane zones and building codes matter. Homes built to newer codes withstand storms better. Ask about impact windows, roof age and type, and whether the home meets current wind mitigation standards. These factors affect insurance costs and your safety.

Flood zones are critical in Florida. Many beautiful properties sit in flood zones. This doesn't necessarily mean you shouldn't buy there, but understand the implications: required flood insurance, potential evacuation concerns, and resale considerations.

HOA communities are prevalent in Florida. Some people love the amenities and maintenance-free lifestyle. Others find the rules restrictive and the fees burdensome. Review HOA documents carefully before buying in an HOA community. Understand the rules, fees, and whether any special assessments are planned.

Condo vs. single-family is a common first-time buyer decision. Condos often offer lower entry prices and minimal exterior maintenance, making them appealing to first-timers. However, they come with HOA fees and shared walls. Single-family homes provide more privacy and no condo fees but require more maintenance and typically higher purchase prices.

Older homes vs. new construction each have pros and cons. Older homes in established neighborhoods often offer more character and mature landscaping. New construction provides modern features, warranties, and energy efficiency. Florida's humidity and salt air can be tough on older homes, so pay attention to maintenance history.

Don't rush the process, but be ready to move quickly when you find the right home. In competitive markets like Hollywood, good properties can receive multiple offers quickly.

Step 5: Make an Offer

When you've found "the one," your agent will help you craft a competitive offer. In Florida, offers include the purchase price, earnest money deposit (typically 1-3% of the purchase price), contingencies, requested closing date, and what items you want included (appliances, window treatments, etc.).

Common contingencies protect buyers:

• Financing contingency: You can walk away if you can't secure financing

• Inspection contingency: You can request repairs, negotiate price, or cancel based on inspection findings

• Appraisal contingency: You're not obligated to proceed if the home appraises for less than the purchase price

In hot markets, some buyers waive contingencies to make their offers more attractive. This is risky, especially for first-time buyers. Discuss the implications with your agent and lender before waiving any protections.

The seller may accept your offer, reject it, or counter with different terms. Negotiation is normal. Don't take it personally—it's business. Your agent will guide you through this process.

Step 6: Home Inspection and Appraisal

Once you're under contract, schedule a home inspection immediately. In Florida, inspectors should have experience identifying moisture intrusion, termite damage, roof condition, AC system health, and other state-specific issues. A thorough inspection typically costs $300-500 but can save you thousands by identifying problems before you buy.

Review the inspection report carefully with your agent. No home is perfect, but you need to understand what repairs might be needed and their estimated costs. You can request the seller make repairs, ask for a price reduction, or cancel the contract if the inspection reveals major issues.

The appraisal happens simultaneously. Your lender orders an appraisal to confirm the home's value supports the loan amount. If the appraisal comes in below the purchase price, you'll need to negotiate a solution: the seller reduces the price, you bring additional cash to closing, or you walk away using your appraisal contingency.

Step 7: Final Mortgage Approval and Underwriting

While inspections happen, your loan moves into underwriting. The underwriter reviews all documentation, verifies information, and makes the final approval decision. They may request additional documents or explanations—respond promptly to avoid delays.

During this period, maintain financial stability. Don't change jobs, make large purchases, open new credit accounts, or do anything that changes your financial picture. Underwriters can re-verify employment and pull credit again right before closing. Changes can delay or even derail your closing.

City First Mortgage's experienced team guides borrowers through underwriting, anticipating potential questions and ensuring a smooth process. Our access to multiple lenders means we can find solutions even if unexpected issues arise.

Step 8: Closing on Your Florida Home

As closing approaches, you'll receive a Closing Disclosure showing your final loan terms and costs. Review it carefully and compare it to your initial Loan Estimate. Ask questions about anything unclear. Florida law requires you receive the Closing Disclosure at least three business days before closing.

Schedule a final walk-through 24-48 hours before closing. This ensures any agreed repairs were completed and the home is in the expected condition. Verify all included items are still present.

Closing in Florida typically happens at a title company. Bring a government-issued ID and your cashier's check or confirmation of wire transfer for the remaining funds needed. You'll sign numerous documents. The title company will explain each one, but your lender and agent can also answer questions.

Once everything is signed and funds are disbursed, you'll receive the keys to your new home. Congratulations—you're officially a Florida homeowner!

Credit Score Requirements for First Time Buyers

Credit scores mystify many first-time buyers, but understanding how they affect your mortgage options is important.

Different loan types have different minimum credit score requirements:

FHA loans are most forgiving, accepting scores as low as 580 for 3.5% down payment loans, or 500-579 for 10% down payment loans. This makes FHA particularly popular with first-time buyers who may have limited or imperfect credit histories.

Conventional loans typically require 620 or higher, though some lenders prefer 640+. The higher your score, the better your interest rate will be. Conventional loans become particularly attractive with scores of 740 or higher, where you'll qualify for the best rates available.

VA loans don't have a minimum credit score mandated by the VA, but most lenders require at least 620. Some will consider lower scores with compensating factors like stable employment or significant assets.

USDA loans generally require 640 or higher, though this can vary by lender.

Your credit score directly impacts your interest rate. A 100-point difference in score can mean thousands of dollars over the life of your loan. For example, on a $300,000 mortgage, a 0.5% interest rate difference results in roughly $100 more per month and over $30,000 in additional interest over 30 years.

If your credit needs improvement before buying, focus on:

• Paying all bills on time (payment history is the biggest factor)

• Reducing credit card balances below 30% of limits

• Avoiding new credit applications

• Addressing any errors on your credit reports

• Not closing old credit accounts (this can hurt your score)

How long does credit improvement take? It depends on your starting point and what's hurting your score. Simple steps like paying down balances can help within a few months. Recovering from major negative marks like bankruptcy or foreclosure takes longer—typically 2-7 years depending on the event and loan type you're seeking.

Down Payment Strategies for Florida First Time Buyers

The down payment question causes more anxiety than almost any other aspect of buying a home. The good news is that today's first-time buyers have more options than ever.

How Much Do You Really Need?

The answer depends on your loan type:

• 0% down: VA and USDA loans

• 3-3.5% down: FHA loans (3.5%) and some conventional loans (3%)

• 5-10% down: Conventional loans

• 20% down: Avoids private mortgage insurance (PMI) on conventional loans

Notice that 20% down is not required. The 20% figure became standard because it avoids PMI and gives you immediate equity, but millions of Americans buy homes with less.

Down Payment Assistance Programs

Many of the Florida-specific programs mentioned earlier provide down payment and closing cost assistance. These programs are real money that can dramatically reduce your upfront cash needs. They typically have income limits and sometimes location restrictions, but they're worth exploring.

City First Mortgage stays current on available assistance programs and can determine which ones you qualify for. These programs change frequently, and many first-time buyers miss out simply because they don't know the programs exist.

Creative Down Payment Sources

Beyond traditional savings, some acceptable down payment sources include:

Gifts from family are common. Parents or relatives can gift money for your down payment. You'll need a gift letter stating the money is a gift, not a loan. The donor may need to provide bank statements showing they have the funds. Different loan types have specific gift requirements.

Grants from various organizations and non-profits help first-time buyers. These don't need to be repaid. Eligibility varies widely based on profession, income, location, and other factors.

401(k) loans let you borrow from your retirement account. This is generally not advisable because you're borrowing from your future, and if you leave your job, the loan typically must be repaid quickly. However, some people use this option when they have significant 401(k) balances but limited liquid savings. Understand the risks before going this route.

IRA withdrawals for first-time home buyers have special rules. You can withdraw up to $10,000 from a traditional IRA penalty-free (though you'll still owe income tax) for a first-time home purchase. Roth IRA contributions (not earnings) can also be withdrawn at any time without penalty.

How Much to Save Beyond Your Down Payment

Don't deplete your savings to maximize your down payment. You need money for:

• Closing costs: 2-5% of loan amount in Florida

• Moving expenses: Truck rental, movers, storage, etc.

• Immediate repairs or improvements: Few homes are move-in perfect

• Emergency fund: 3-6 months of expenses

• Furniture and household items: Especially if you're moving from an apartment to a larger home

Florida homeownership also comes with some unique costs. Your first hurricane season may require purchasing storm supplies. AC failures are expensive. Pest control is often necessary. Budget for these realities.

Common Mistakes Florida First Time Home Buyers Make

Learning from others' mistakes can save you time, money, and stress. Here are the most common pitfalls first-time buyers encounter:

Mistake #1: Not Getting Pre-Approved First

House hunting without pre-approval wastes everyone's time. You might fall in love with homes you can't afford, or you'll make an offer only to discover you don't qualify for the needed loan amount. Sellers and their agents strongly prefer working with pre-approved buyers. In competitive markets, your offer might not even be considered without a pre-approval letter.

Getting pre-approved first clarifies your budget, identifies any credit or documentation issues you need to resolve, and positions you as a serious buyer. It takes a few hours and costs nothing.

Mistake #2: Maxing Out Your Budget

Just because you're approved for a certain loan amount doesn't mean you should use every dollar. Lenders calculate the maximum they'll lend you, but only you know what monthly payment feels comfortable.

Florida has high insurance costs, property taxes, and utility bills. Many first-time buyers who stretch to buy the most expensive home possible end up "house poor"—unable to enjoy their life because every dollar goes to the mortgage. Leave yourself breathing room for fun, savings, and unexpected expenses.

Mistake #3: Skipping the Home Inspection

Trying to save $300-500 by skipping the inspection can cost you tens of thousands in unexpected repairs. This is especially risky in Florida, where humidity, termites, older roofs, and foundation issues are common.

A good inspection reveals problems you can negotiate with the seller or at minimum budget for after closing. Some issues, like major structural problems or extensive mold, might be dealbreakers. You want to know before you're locked into the purchase.

Never waive your inspection contingency unless you've consulted with experienced advisors and understand you're taking a significant risk.

Mistake #4: Ignoring Total Ownership Costs

Your monthly payment is just one piece of the puzzle. Florida homeownership includes:

• Property taxes (though homestead exemption helps)

• Homeowners insurance (higher in Florida than most states)

• Flood insurance (if required)

• HOA fees (if applicable)

• Maintenance and repairs (AC, roof, plumbing, landscaping)

• Utilities (AC costs add up in Florida's heat)

Calculate the true monthly cost including all these factors. Some months you'll spend more (AC repair in August), some less, but budget realistically for the average.

Mistake #5: Making Major Financial Changes During the Process

Once you start the mortgage process, freeze your financial situation. Lenders will re-verify your employment, pull your credit again, and review your bank statements right before closing.

Don't:

• Buy a new car or take on any new debt

• Open new credit cards

• Close old credit accounts

• Make large cash withdrawals or deposits

• Change jobs or become self-employed

• Make large purchases on credit

• Co-sign on anyone else's loans

Any of these actions can delay or kill your closing. If you must make any financial changes, discuss with your lender first to understand the implications.

Mistake #6: Working With Lenders Who Have Limited Options

Many first-time buyers don't realize that not all mortgage companies have access to the same loan products and rates. Some lenders work with only one or two funding sources, which means you're limited to whatever programs and rates those sources offer.

This is where City First Mortgage's approach provides a significant advantage. We work with multiple lenders and funding sources, which means we can compare options internally and present you with the best available terms for your situation. You complete one application, and our team does the comparison work behind the scenes.

Our access to diverse lending sources means whether you have perfect credit or some challenges, whether you're seeking conventional financing or need alternative options, we can find a solution. This single point of contact with multiple lending options saves you time while ensuring you get competitive terms. With over 35 years serving Florida buyers, City First has built relationships with lenders that provide our clients with excellent rates and service.

Mistake #7: Falling in Love with the First House

It's natural to get excited about your first few showings. Everything feels new and exciting. But making an emotional decision rather than a logical one can lead to buyer's remorse.

View multiple homes before making an offer. This gives you perspective on what's available in your price range and helps you understand what features you truly need versus want. Your 10th showing will be evaluated more critically than your first.

Take notes and photos at each showing. After viewing several homes, they blur together. Having reference materials helps you compare objectively.

Mistake #8: Waiving Contingencies in Hot Markets

When multiple buyers compete for the same home, real estate agents sometimes suggest waiving contingencies to make your offer more attractive. This is extremely risky.

Your financing contingency protects you if you can't get a loan. Your inspection contingency lets you discover problems and negotiate repairs or cancel the contract. Your appraisal contingency protects you from overpaying.

Waiving these protections can mean losing your earnest money or being forced to close on an overpriced home with serious problems. As a first-time buyer, you need these protections. Let someone else take the risk.

Understanding Florida's Homestead Exemption

Florida's homestead exemption provides valuable benefits that many first-time buyers don't fully understand. Taking advantage of this protection is essential to maximizing the value of Florida homeownership.

What Is the Homestead Exemption?

Florida's homestead exemption reduces the taxable value of your primary residence for property tax purposes. The basic exemption removes up to $50,000 from your home's assessed value. The first $25,000 applies to all property taxes, including school district taxes. The second $25,000 applies to assessed values between $50,000 and $75,000 and excludes school district taxes.

For example, if your home is assessed at $300,000 and you have the full homestead exemption, you'll only pay property taxes on $250,000 (or $275,000 for school taxes). This typically saves homeowners several hundred to over a thousand dollars annually, depending on local tax rates.

Additional Homestead Benefits

Beyond tax savings, homestead exemption provides:

Save Our Homes cap: Once you have homestead exemption, your assessed value can't increase more than 3% annually or the rate of inflation (whichever is lower), regardless of how much your market value increases. This protection keeps your property taxes manageable even if your neighborhood sees rapid appreciation.

Portability: If you sell your homesteaded property and buy another Florida home, you can transfer up to $500,000 of the Save Our Homes benefit to your new property. This is huge for people upgrading to nicer homes.

Creditor protection: Florida's homestead protection shields your home from most creditors. This is one of the strongest homestead protections in the country.

How to Apply

Apply for homestead exemption with your county property appraiser's office. In Broward County, this is the Broward County Property Appraiser. Applications must be filed by March 1 to receive the benefit for that tax year.

You must own and occupy the property as your primary residence by January 1 of the application year. Many first-time buyers who close late in the year don't realize they can apply for homestead for the following year as long as they owned and occupied by January 1.

The application process is straightforward. You'll need proof of ownership (deed or closing documents), proof of Florida residency (driver's license, voter registration), and sometimes proof of occupancy (utility bills). Many counties allow online applications.

Why This Matters for First-Time Buyers

The homestead exemption significantly impacts your long-term housing costs. When calculating affordability, factor in the tax savings. Your first year may have higher property taxes if you close too late for homestead, but subsequent years will cost less.

The Save Our Homes cap provides financial predictability. Even if your neighborhood gentrifies and surrounding homes sell for much more, your assessed value increases slowly. This protection means property taxes won't force you out of your home if the area becomes trendy.

Apply for homestead exemption immediately after closing. Mark your calendar for the March 1 deadline. This is free money you're entitled to—don't leave it on the table.

Florida Home Insurance Essentials

Home insurance in Florida operates differently than in many other states. Understanding the requirements and costs helps you budget accurately.

Why Florida Insurance Is Unique

Florida's hurricane risk, coastal location, and subtropical climate create a challenging insurance market. Premiums are higher than the national average, and coverage can be more complex.

After major hurricane seasons, insurance companies have reduced their Florida exposure, making it harder to find affordable coverage. Some national insurers have stopped writing new policies in Florida or exited the market entirely. This means Florida buyers need to be proactive about securing insurance.

Required Coverages

Homeowners insurance covers your dwelling, personal property, liability, and additional living expenses if your home becomes uninhabitable. This is required by all mortgage lenders. Your policy should cover the full replacement cost of your home, not just its market value.

Flood insurance is required if you're in a FEMA-designated high-risk flood zone (A or V zones) and have a federally-backed mortgage. Even if you're not in a high-risk zone, consider flood coverage. Standard homeowners insurance doesn't cover flood damage, and Florida's low elevation and heavy rainfall create flooding risks throughout the state.

Flood insurance typically costs $400-2,000+ annually depending on your flood zone, elevation, and coverage amount. It's purchased separately through the National Flood Insurance Program or private insurers.

Windstorm/hurricane coverage is included in standard homeowners insurance in most of Florida. However, some coastal areas have separate wind policies or high deductibles specifically for wind damage. Read your policy carefully to understand your hurricane deductible, which is often percentage-based (2-5% of the dwelling coverage) rather than a flat dollar amount.

Average Costs in Florida

Homeowners insurance in Florida averages $2,000-4,000 annually, but this varies dramatically by location and property characteristics. Coastal homes cost more than inland properties. Older homes with original roofs and no wind mitigation features cost significantly more than newer homes built to current codes.

Your credit score also affects insurance premiums. Insurers use credit-based insurance scores to determine rates. Improving your credit before shopping for insurance can save money.

How to Get the Best Rates

Work with a lender who has multiple funding sources. City First Mortgage's relationships with multiple lenders mean they can find competitive rates and terms for your specific situation. Rather than being limited to one lender's programs, you benefit from their access to diverse funding options.

Bundle policies for insurance. Many insurers offer discounts if you purchase both home and auto insurance from them. These discounts can be substantial.

Increase your deductible. Choosing a higher deductible reduces your premium. Just ensure you have enough savings to cover the deductible if you need to file a claim.

Home security and safety features often qualify for discounts: burglar alarms, fire alarms, storm shutters, impact windows, newer roofs, and updated electrical/plumbing systems.

Wind mitigation inspections document features that protect your home from hurricanes. These inspections (typically $75-150) can unlock substantial discounts by showing you have impact windows, roof-to-wall attachments, reinforced roof decking, and other wind-resistant features. If you're buying a newer home, the builder may have wind mitigation documentation already.

Citizens Property Insurance is Florida's insurer of last resort. If you can't find coverage in the private market, Citizens provides an option. Rates are often competitive, but Citizens aims to move policyholders to private insurers when possible.

Insurance Affects Your Mortgage Payment

Your homeowners insurance premium is typically included in your monthly mortgage payment through an escrow account. The lender collects 1/12 of your annual premium each month, holds it in escrow, and pays your insurance company when the premium is due.

This means your monthly payment includes principal, interest, property taxes, and insurance (PITI). Some lenders also escrow HOA fees if applicable. When budgeting, calculate your full monthly housing cost including all these components.

Hollywood and Broward County Specifics

Broward County's coastal location means hurricane risk is real. However, Hollywood's building codes have strengthened considerably over the years, particularly after Hurricane Andrew in 1992. Homes built after the mid-1990s typically have better wind resistance and qualify for more favorable insurance rates.

If you're buying in Hollywood, particularly near the beach, factor in higher insurance premiums. Get actual quotes early in your home search so there are no surprises when you're ready to close.

Hot Florida Markets for First Time Buyers in 2025

Every first time home buyer in Florida wants to know where they can find the best value and opportunity. The state offers incredible diversity, from bustling cities to quiet beach towns, each with unique advantages.

Hollywood, Florida: A First Time Home Buyer's Dream Location

For any first time home buyer in Florida considering South Florida, Hollywood deserves serious attention. This Broward County city offers an exceptional combination of location, lifestyle, and value that's hard to match.

Location and Accessibility

Hollywood sits perfectly between Fort Lauderdale and Miami, giving residents easy access to two major metropolitan areas while maintaining its own distinct character. Fort Lauderdale-Hollywood International Airport is minutes away, making travel convenient. Major highways including I-95 and the Florida Turnpike provide quick connections throughout South Florida.

Diverse Housing Options

Hollywood's housing market serves first time home buyers at various price points. Downtown Hollywood offers condos and townhomes starting in the mid-$200,000s, making homeownership accessible. Hollywood Hills features single-family homes with mature landscaping in the $300,000-500,000 range. The Hollywood Lakes neighborhood showcases waterfront properties and charming historic homes. Even Hollywood Beach, with its famous Broadwalk, has condo options for buyers willing to embrace coastal living.

This diversity means a first time home buyer in Florida can find something appropriate whether they're single professionals, young families, or retirees starting their next chapter.

Lifestyle and Amenities

The Hollywood Beach Broadwalk stretches 2.5 miles along the Atlantic Ocean, lined with restaurants, shops, and entertainment. Unlike the high-rise corridor of Miami Beach, Hollywood Beach maintains a more relaxed, neighborhood feel. Downtown Hollywood's ArtsPark and monthly ArtWalk events create a vibrant cultural scene.

Parks throughout the city provide recreation opportunities. West Lake Park offers kayaking and nature trails. Topeekeegee Yugnee (T.Y.) Park features a water park, camping, and fishing. For any first time home buyer in Florida seeking an active lifestyle, Hollywood delivers.

Strong Community and Growing Economy

Hollywood has worked hard to revitalize its downtown and beachfront areas. New businesses continue opening, creating jobs and economic opportunity. The community is diverse and welcoming, with established neighborhoods where people know their neighbors.

Why City First Mortgage Knows Hollywood

City First Mortgage's office is located right in Hollywood at 6100 Hollywood Blvd, Suite 305. This isn't just a mailing address—they've been part of this community since 1988. Their team knows Hollywood's neighborhoods intimately. They understand property values, which areas offer the best value, and what to look for when buying here. This local expertise benefits every first time home buyer in Florida who works with them.

When you walk into their Hollywood office, you're meeting with people who live and work in this community. They've helped thousands of Hollywood residents achieve homeownership and continue that mission today.

Other First-Time Buyer Friendly Florida Markets

While Hollywood is City First Mortgage's home base, they serve first time home buyers throughout Florida. Other markets worth considering include:

Tampa offers strong job growth, diverse neighborhoods, and relatively affordable housing compared to South Florida. The metro area continues expanding with new development.

Jacksonville provides some of Florida's most affordable housing. This sprawling city has numerous neighborhoods catering to different lifestyles and budgets.

Orlando draws first time home buyers with its entertainment industry jobs and growing tech sector. Suburban areas around Orlando offer particularly good value.

Palm Coast appeals to buyers seeking a quieter coastal lifestyle without Miami or Fort Lauderdale prices. This Flagler County city offers beach access and golf communities.

Port St. Lucie on the Treasure Coast has become increasingly popular with first time home buyers seeking affordability while maintaining access to beaches and amenities.

No matter where in Florida you're considering, City First Mortgage can help. Our statewide lending capabilities mean you get the same expertise and service whether you're buying in Hollywood or the Panhandle.

Working with City First Mortgage as a First Time Buyer

Choosing the right mortgage lender can make the difference between a smooth, confident home buying experience and a stressful, confusing process. For any first time home buyer in Florida, working with City First Mortgage offers distinct advantages.

Deep Florida Experience

Since 1988, City First Mortgage has focused exclusively on serving Florida borrowers. That's over 35 years of understanding Florida's unique market conditions, insurance requirements, and real estate landscape. We've guided first time home buyers through every type of market—booms, busts, and everything in between.

This experience means we anticipate questions before you ask them. We know the challenges you'll face and have solutions ready. First-time buyers often don't know what they don't know, and having a lender who can guide you through the process is invaluable.

Local Hollywood Presence

Being based in Hollywood matters. When you work with City First Mortgage, you can visit our office, meet your loan officer face-to-face, and drop off documents in person if needed. In an increasingly digital world, some people still value local, personal service. Our Hollywood location at 6100 Hollywood Blvd makes us accessible to South Florida buyers.

Local presence also means local knowledge. Our team knows Broward County's property values, understands which neighborhoods are appreciating, and can provide insights beyond just loan products.

Comprehensive Loan Options

City First Mortgage specializes in helping borrowers who need flexibility. While we offer all standard loan programs (FHA, VA, conventional, USDA), our real strength is alternative financing for borrowers who don't fit traditional lending criteria.

For first time home buyers, this means options. If your credit isn't perfect, if you're self-employed with write-offs that reduce your qualifying income, if you've had a recent financial setback, or if you have unique circumstances, City First likely has a solution. Our non-conforming loan programs have helped thousands of Floridians become homeowners when traditional lenders said no.

Multiple Lending Relationships

City First Mortgage's relationships with multiple funding sources provide you with competitive options. We compare programs and rates internally, presenting you with the best fit for your situation. One application, multiple options—this saves you time while ensuring you get favorable terms.

These lending relationships also mean flexibility. If one lender won't approve your loan, we can often find another who will. This problem-solving ability has saved countless transactions when issues arose during underwriting.

Personalized Service

Every first time home buyer in Florida has unique circumstances, goals, and concerns. City First Mortgage doesn't believe in one-size-fits-all lending. Our team takes time to understand your situation, explain your options, and recommend the path that makes the most sense for you.

You'll work with actual loan officers who answer questions, return calls, and guide you through the process. This personalized attention matters tremendously when you're nervous about taking on a mortgage and want someone who cares about your success.

Proven Track Record

City First Mortgage maintains an A+ rating with the Better Business Bureau. We're licensed by the Florida Department of Financial Services and have all required state and federal credentials. Our longevity—37 years in business—speaks to our stability and reputation.

We've closed thousands of loans for Florida buyers. This experience means fewer surprises, smoother closings, and the confidence that comes from working with proven professionals.

Commitment to First-Time Buyers

City First Mortgage understands that buying your first home is simultaneously exciting and terrifying. We've built our business on helping people navigate this process successfully. Every loan officer on our team has extensive experience working with first-time buyers specifically.

We'll explain things in plain language without jargon. We'll answer the same question multiple times if needed. We'll proactively communicate throughout the process so you always know what's happening. This commitment to education and communication makes the experience far less stressful.

First Time Florida Home Buyer FAQ

How much money do I need to buy my first home in Florida?

The amount needed varies significantly based on the loan program and property. At minimum, some first time home buyers in Florida can purchase with as little as 0% down using VA or USDA loans. FHA loans require just 3.5% down, while conventional loans can start at 3% down.

Beyond the down payment, budget for closing costs (typically 2-5% of the loan amount in Florida), moving expenses, and reserves for emergencies and immediate repairs. For example, buying a $300,000 home with an FHA loan would require $10,500 down payment plus approximately $6,000-15,000 in closing costs, though down payment assistance programs can reduce these amounts.

The good news is that down payment assistance programs available to Florida buyers can significantly reduce upfront costs. City First Mortgage can evaluate which assistance programs you qualify for and help you understand the total cash needed for your specific situation. Use our mortgage calculator to estimate your monthly payments with different down payment amounts.

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

Minimum credit score requirements depend on the loan type. FHA loans accept scores as low as 580 for 3.5% down (or 500-579 for 10% down). Conventional loans typically require 620 or higher. VA loans have no VA-mandated minimum, though most lenders prefer 620+.

However, higher scores get better interest rates. A 740+ credit score typically qualifies for the best available rates. Even a 50-point difference in score can affect your rate and cost thousands over the loan term.

If your credit needs improvement, City First Mortgage can review your credit report, identify what's hurting your score, and provide specific guidance on improvement strategies. We also offer non-conforming loan options for borrowers with challenged credit who might not qualify for traditional programs. Start the conversation today.

Can I buy a home with student loan debt?

Yes, absolutely. Many first time home buyers in Florida carry student loan debt. Lenders factor student loan payments into your debt-to-income ratio, but having student loans doesn't automatically disqualify you.

What matters is your total monthly debt payments relative to your income. If your student loan payment is $300 monthly and you make $5,000 monthly, that's manageable. Lenders want your total debt payments (including the proposed mortgage) to stay below 43-50% of your gross monthly income, depending on the loan program.

Income-driven repayment plans can actually help because they may reduce your required monthly payment, improving your debt-to-income ratio. City First Mortgage knows how to structure loans for borrowers with student debt and can help you understand how your specific situation affects your purchasing power.

How long does it take to buy a home in Florida?

From pre-approval to closing typically takes 30-60 days, though this varies. Here's a general timeline:

Pre-approval: 1-3 days once you submit all required documentation House hunting: Varies widely—could be days or months depending on your market and preferences
Under contract to closing: 30-45 days is standard, though cash deals close faster and complex transactions may take longer

Florida's closing process involves title searches, inspections, appraisals, and underwriting. City First Mortgage's experience with Florida transactions helps prevent delays. We know what documentation Florida underwriters require and can often anticipate and address issues before they become problems.

Should I buy or rent in Florida?

This depends on your financial situation, long-term plans, and local market conditions. Generally, buying makes sense if you plan to stay in one place for at least 3-5 years and have stable income.

In Florida, buying offers advantages including building equity instead of paying someone else's mortgage, potential property appreciation, tax benefits through the homestead exemption, and fixed payments if you get a fixed-rate mortgage (while rent increases over time).

Renting makes sense if you value flexibility, don't want maintenance responsibilities, or aren't sure where you'll be in a few years. It also works if you need time to improve your credit or save a larger down payment.

For most people settled in Florida with stable jobs, buying provides better long-term financial outcomes. City First Mortgage can show you the numbers based on your specific situation and local market conditions. Use our calculator to compare rent vs. buy scenarios.

What if I'm self-employed?

Self-employment doesn't prevent you from buying a home, but it does change how lenders evaluate your income. Traditional lending looks at tax returns, but business write-offs often reduce your reported income, making it harder to qualify.

This is where City First Mortgage's specialization in alternative financing helps tremendously. We offer bank statement loan programs that evaluate your income based on bank deposits rather than tax returns. This approach often qualifies self-employed borrowers for significantly larger loan amounts.

We understand business finances and can structure your loan application to maximize your qualifying income. Our experience with self-employed borrowers, real estate investors, and business owners means we know solutions that traditional lenders might not offer. Get started with an application today.

What happens if I'm denied for a mortgage?

A denial isn't the end of your home buying dreams. Often it's temporary, and specific steps can get you approved.

City First Mortgage's approach is to understand WHY you were denied and develop a plan to address it. Common denial reasons include:

Insufficient credit: We can recommend specific actions to improve your score within 3-6 months
High debt-to-income ratio: We might suggest paying down certain debts or considering a lower purchase price temporarily
Employment history: We can explain what documentation could strengthen your application
Appraisal issues: Sometimes switching loan programs or making a larger down payment solves this

Our non-conforming loan options also help borrowers who can't qualify for traditional financing. Where one loan program says no, another might say yes. Our access to multiple lending sources and diverse loan products means we can often find solutions when other lenders can't.

Don't give up if you receive a denial. Contact City First Mortgage at (954) 967-6600 for a consultation. We've helped many borrowers overcome initial denials and successfully purchase homes.Contact City First Mortgage](https://cityfirstmortgagecorp.com/apply.php) at (954) 967-6600 for a consultation. They've helped many borrowers overcome initial denials and successfully purchase homes.

Take the First Step Toward Florida Homeownership Today

Becoming a first time home buyer in Florida is achievable with the right preparation, knowledge, and support. While the process has steps and requirements, thousands of people just like you successfully navigate this journey every year.

The key takeaways for any first time home buyer in Florida:

Programs exist to help you. From FHA loans requiring just 3.5% down to VA loans with zero down payment, from Florida-specific assistance programs to the Hometown Heroes program, resources are available to reduce the barriers to homeownership.

Pre-approval is your first priority. Understanding what you qualify for allows you to house hunt confidently and make competitive offers when you find the right property.

Total costs matter. Your monthly payment is more than principal and interest. Factor in property taxes, insurance, HOA fees, utilities, and maintenance when determining true affordability.

Florida has unique considerations. Hurricane insurance, flood zones, homestead exemption, and climate-related maintenance costs all affect ownership here. Understanding these factors prevents unpleasant surprises.

The right home exists for you. Whether you're looking in Hollywood, Tampa, Jacksonville, or anywhere in Florida, properties are available at various price points. Patience and flexibility help you find the right fit.

Experience matters. Working with a Florida mortgage lender who knows Florida inside and out, understands first-time buyers, and offers multiple loan solutions makes the process dramatically easier.

City First Mortgage has spent 37 years helping Floridians achieve homeownership. Our Hollywood-based team combines local expertise with statewide capabilities and a genuine commitment to first-time buyer success. We've guided thousands through this process and helped people overcome obstacles that seemed insurmountable.

Whether your credit is perfect or challenged, whether you fit traditional lending criteria or need alternative solutions, whether you have 20% down or need assistance programs—City First Mortgage can help.d-based team combines local expertise with statewide capabilities and a genuine commitment to first-time buyer success. They've guided thousands through this process and helped people overcome obstacles that seemed insurmountable.

Whether your credit is perfect or challenged, whether you fit traditional lending criteria or need alternative solutions, whether you have 20% down or need assistance programs—City First Mortgage can help.

Start Your Florida Homeownership Journey Now

Don't wait another day wondering if homeownership is possible. Take action now and find out exactly what you qualify for.

📞 Call City First Mortgage: (954) 967-6600
Speak directly with a first-time buyer specialist who can answer your questions and start your pre-qualification.

📧 Email Your Questions: Get answers about programs, rates, requirements, or anything else you're wondering about.

Your dream of owning a home in Florida is closer than you think. City First Mortgage has the experience, programs, and commitment to make it happen. We've helped thousands of first time home buyers in Florida, and we're ready to help you too.

The Sunshine State is waiting. Your first home is waiting. City First Mortgage is waiting to help you make it all happen. Contact us today and take that crucial first step toward Florida homeownership.