Kim & Niles Pfeiffer
Nova Real Estate · Central Florida
Financing Education

Get an idea before you get your prequalification.

Financing is the part of buying a home that feels the most like a foreign language, and it is usually the biggest source of worry for anyone relocating here. This guide gives you a plain-language head start: what the loan types are called, what help might be available, and what to ask. It is meant to give you an idea and a little hope, not your actual prequalification. That part still comes from a licensed lender, and we will help you get there.

Licensed Realtors®
Not Lenders or Loan Officers
Zero Referral Fees, Always Your Choice

A quick, important note before you dive in. Kim and Niles Pfeiffer are licensed Florida real estate agents, not mortgage lenders, loan officers, or financial advisors. Nothing on this page, including the quick estimate tool below, is a loan offer, a rate quote, a prequalification, or individual financial, tax, or legal advice, and none of it replaces one.

Down payment minimums, closing cost ranges, and assistance programs described below are general, publicly available facts meant to give you an idea of what might be possible, not a guarantee of what you will receive. They change often and vary by lender, by loan program, and by your own credit and income. A licensed mortgage lender is the only one who can tell you what you actually qualify for today.

Before You Read On

How to use this guide

Think of this as a menu, not a recommendation, and think of the calculator below as a warm-up, not the real thing. Every buyer's situation, credit, income, savings, and goals, points toward a different loan. Our job is to make sure you recognize the names and the tradeoffs, and leave with a little hope, before a lender starts using them in a phone call. Their job is to run your actual numbers and tell you what you specifically qualify for.

Just to Get an Idea

See roughly where you might stand

Fill this in for a rough, private estimate. It is not saved anywhere and it is not your prequalification, it is just a head start so the real conversation with a lender feels less like starting from zero.

Estimated DTI
0%
Under 43% is generally preferred by lenders.
Estimated Down Payment
$0
Cash needed up front, based on your selected percent.
Estimated Closing Costs
$0
Typically 2% to 4% of the home price.
Where You Might Stand
No worries, plenty of buyers start here.
A general guide only, your lender gives the real picture.

This estimate is general and does not check your credit, verify your income, or reflect a specific lender's guidelines. Your actual numbers may be higher, lower, or simply different.

Send These Numbers for a Real Review
The Main Options

Loan types, in plain language

These are the loan types relocation buyers ask us about most. This is not an exhaustive list of every program that exists, and it is not advice on which one is right for you.

Loan Type Down Payment Can Start Around Often Good For Keep In Mind
ConventionalAs low as 3%*Strong, documented creditPMI until enough equity builds
FHAAs low as 3.5%More flexible credit historyMortgage insurance can last the life of the loan
VAAs low as 0%Eligible veterans & service membersRequires a Certificate of Eligibility
USDAAs low as 0%Eligible rural/suburban addressProperty & income both must qualify
JumboTypically higherLarger or luxury purchasesStricter credit & reserve requirements

*For eligible first-time buyer programs. These are general ranges only, not quotes, and your actual down payment depends on the lender, the property, and your own financial picture.

Most Common

Conventional Loans

Not backed by a government agency, and the most widely used loan type overall. Some programs allow down payments as low as 3% for eligible first-time buyers, though putting down less than 20% typically means paying private mortgage insurance (PMI) until you build enough equity, at which point PMI can usually be dropped.

Tends to fit buyers with solid, well-documented credit and income. Loan limits are set annually and vary by county.

Government-Backed

FHA Loans

Insured by the Federal Housing Administration, with down payments as low as 3.5% for borrowers who meet the credit requirements. Historically more forgiving of lower credit scores and higher debt-to-income ratios than conventional financing.

Comes with mortgage insurance premiums (MIP), both upfront and annual, that in some cases last for the life of the loan. A lender can walk you through whether that tradeoff makes sense for your numbers.

Veterans & Service Members

VA Loans

Guaranteed by the Department of Veterans Affairs for eligible veterans, active-duty service members, and some surviving spouses. Often allows financing with no down payment at all and no ongoing PMI, though most borrowers pay a one-time VA funding fee.

Eligibility is based on service history and is confirmed through a Certificate of Eligibility, not by us or by a general estimate.

Rural & Suburban Areas

USDA Loans

Backed by the U.S. Department of Agriculture for eligible low-to-moderate income buyers in qualifying rural and suburban areas, with no-down-payment financing where it applies. Also carries an upfront and annual guarantee fee, similar in spirit to FHA's mortgage insurance.

More of Central Florida qualifies than people expect, some pockets outside the dense metro core, but a lender needs to confirm the specific address and your income against current program limits.

Higher Price Points

Jumbo Loans

Used for loan amounts above the conventional conforming limit for the county. Common for larger or luxury purchases in areas like Windermere or Bella Collina.

Usually comes with stricter requirements: larger down payments, higher credit score expectations, and proof of cash reserves after closing.

The Other Big Decision

Fixed rate or adjustable rate?

This decision applies on top of whichever loan type you choose above, and it is worth understanding on its own.

Fixed-Rate Mortgages

Your interest rate is locked in for the entire loan term, commonly 30 years or 15 years. Your principal and interest payment never changes, which makes budgeting predictable, even if it means paying more upfront if rates ever move lower later.

Adjustable-Rate Mortgages (ARMs)

Starts with a fixed rate for an introductory period (often 5, 7, or 10 years), then adjusts periodically based on market conditions. Can mean a lower starting payment, but real uncertainty afterward. Worth understanding the adjustment caps and schedule in detail with your lender before choosing this path.

You're Not Always On the Hook Alone

Help paying closing costs and your down payment

Buyers are often surprised there is more help available than they expected. None of this is guaranteed for every purchase, and this is not a complete list of every program that exists, but it is always worth asking about.

Seller-Paid Closing Costs (Concessions)

In some contracts, a seller agrees to contribute toward your closing costs as part of the negotiation. Every loan type sets its own cap on how much a seller can contribute, generally somewhere between 2% and 9% of the purchase price depending on the loan, occupancy, and your down payment. Whether this is realistic depends on market conditions and how the offer is structured. This is something we help negotiate as your agents, your lender confirms the exact cap that applies.

Down Payment Assistance Programs

Florida runs state-level programs such as the Florida Hometown Heroes Program and Florida Assist, and some counties and employers run their own on top of those. These are only two examples among many, not the full list, and not a promise you will qualify. Availability and funding shift throughout the year, so ask a licensed lender to check the complete, current list of what you personally might qualify for.

Lender Credits

Some lenders offer a credit toward closing costs in exchange for a slightly higher interest rate. It is a real tradeoff worth asking about, especially if cash at closing is tighter than your monthly budget.

Buying From Abroad

International buyers & investors

Central Florida draws real estate buyers and investors from around the world. Financing, and taxes, work a little differently if you are not a U.S. citizen or resident. Here is a general idea of how it works, and the kind of team we can help connect you with to handle the details.

This section is general education only, not tax, legal, or immigration advice. Rules for foreign buyers and investors are detailed and change. Always confirm your specific situation with a licensed CPA, attorney, and lender.

Yes, You Can Buy Here

There is no citizenship or U.S. residency requirement to own property in the United States. International buyers purchase in Central Florida every year, for a future home, a rental, or both.

Financing Looks a Little Different

Some lenders offer foreign national loan programs built for buyers without U.S. credit history, and others offer ITIN loans for buyers who have an Individual Taxpayer Identification Number instead of a Social Security number. Down payments on these programs are typically higher than for U.S. resident buyers, and many international buyers choose to purchase in cash instead. A lender who specializes in international buyers can walk you through what actually applies to you.

Your Tax Picture Is Different Too

When a foreign owner eventually sells U.S. property, federal law (FIRPTA) generally requires a portion of the sale price to be withheld at closing and sent to the IRS, with the final tax liability settled afterward. Rules and exceptions vary by situation. This is general information, not tax advice, and a CPA who works with international clients can walk you through what it actually means for you.

A Team That Speaks Your Language

We can introduce you to lenders experienced with foreign national and ITIN financing, and to accountants who regularly work with international buyers and investors, so the process feels turnkey from search to closing and beyond. It is always your choice, and we do not accept a referral fee for either.

The Vocabulary

The lingo, translated

Lenders will use these terms as if everyone already knows them. Now you will.

APR vs. Interest Rate
The interest rate is the cost of borrowing the principal. The APR (annual percentage rate) rolls in certain fees and costs too, so it is usually the better number for comparing two loan offers apples-to-apples.
PMI & MIP
Private mortgage insurance (conventional loans) and mortgage insurance premium (FHA loans) protect the lender, not you, when your down payment is below a certain threshold. Rules for removing it differ by loan type.
DTI (Debt-to-Income Ratio)
Your total monthly debt payments divided by your gross monthly income. Lenders use it to gauge how much additional mortgage payment you can reasonably take on.
Escrow
An account, often managed by your loan servicer, that collects a portion of your property taxes and insurance each month so they are paid on your behalf when due.
Points
An optional upfront fee paid at closing in exchange for a lower interest rate over the life of the loan. Whether it is worth it depends on how long you plan to keep the loan.
Rate Lock
An agreement with your lender to hold a specific interest rate for a set window of time while your loan is processed, protecting you from rate movement before closing.
Prequalification vs. Preapproval
Prequalification is a general estimate based on numbers you provide, similar in spirit to the calculator above. Preapproval involves a lender actually verifying your income, assets, and credit, and carries real weight with a seller.
Closing Costs
Fees beyond the down payment due at closing: lender fees, title work, appraisal, recording fees, and more. Commonly estimated in the 2% to 5% range of the purchase price, though your lender's Loan Estimate is the number to trust.
Earnest Money
A good-faith deposit made when your offer is accepted, held in escrow and applied toward your purchase at closing, or returned per the terms of your contract if the deal falls through for a covered reason.
Walk in Prepared

Questions worth asking any lender

A good lender will welcome every one of these.

Where We Fit In

What we do, and what we deliberately don't

We can introduce you

We work with lenders and accountants we personally trust and can point you to more than one so you can compare. It is always your choice, never required.

We never take a referral fee

We do not accept compensation for recommending any lender or accountant. Our only interest is that you end up with a team you are actually comfortable with.

We don't quote rates or approve loans

We are not loan originators, tax preparers, or attorneys. Anything specific to your credit, income, taxes, or eligibility has to come from a licensed professional, not from us.

Ready for real numbers?

The quick estimate above gives you an idea in minutes. When you are ready for your real prequalification, send us your numbers or reach out directly and we will point you toward a lender.

Start Your Real Prequalification Read the Relocation Guide
Kim Pfeiffer
Instagram@kimsellsfl_
Niles Pfeiffer