Frequently asked mortgage questions
Clear educational answers for Florida homebuyers and real estate professionals, with links to deeper RFG resources.
Mortgage questions, answered
Every mortgage is specific to the borrower, property and current program requirements. These answers are educational starting points.
What does a mortgage broker do?+
A mortgage broker helps a borrower evaluate eligible mortgage options from multiple wholesale lenders, explains the tradeoffs and coordinates the loan through closing.
How early should I speak with a mortgage professional?+
Ideally, before serious home shopping. Early review creates time to understand the payment, prepare documentation and address questions without contract pressure.
Does RFG work with Realtor partners?+
Yes. RFG supports Realtor partners with preapproval, property scenarios, milestone communication, buyer education, co-branded resources and brokerage lunch-and-learns.
Can RFG help self-employed borrowers and investors?+
RFG can evaluate traditional and alternative-documentation possibilities, including bank statement and DSCR programs when eligible.
Is 20% down required for a conventional loan?+
No. Eligible borrowers may have conventional options with less than 20% down. The appropriate structure depends on qualifications, occupancy, property type and current program requirements.
Are FHA loans only for first-time homebuyers?+
No. FHA financing can be used by eligible first-time or repeat buyers who meet occupancy and program requirements.
Does VA lend the money directly?+
For the standard VA-guaranteed purchase program, a private lender makes the loan and VA guarantees a portion of it. VA also operates a separate direct-loan program in limited circumstances.
Does USDA always mean farmland?+
No. Eligible areas can include small towns and lower-density communities. Eligibility is determined by USDA’s current property map, not by whether the home is on agricultural land.
What makes a mortgage jumbo?+
A loan is generally considered jumbo when its amount exceeds the conforming loan limit that applies to the property. Limits can vary by year and county.
Is a doctor loan always the best choice for a physician?+
No. It is one option to compare. Conventional or jumbo financing can be stronger depending on down payment, credit, property, income and long-term plans.
What is DSCR?+
Debt Service Coverage Ratio compares eligible property income with the property’s qualifying debt obligation. A ratio above 1.00 generally indicates income exceeds the debt service, but each program defines the calculation.
Does every deposit count as income?+
No. Transfers, refunds, loan proceeds and other non-income deposits are generally excluded. Program documentation determines what can be counted.
Can renovation costs be included in a mortgage?+
Eligible programs may finance approved renovation costs as part of a purchase or refinance, subject to scope, appraisal and underwriting requirements.
Is down payment assistance always free money?+
No. Some programs are grants, while others are deferred, forgivable or repayable second mortgages. Repayment triggers should be understood before closing.
How long does the mortgage process take?+
Timing varies with the loan, property, documentation, appraisal, contract and underwriting. Early preparation and fast responses can reduce avoidable delays.
Does preapproval guarantee the loan?+
No. It is conditional on verified and updated information, the selected property and final underwriting.
Are closing costs included in the down payment?+
No. Down payment, closing costs and prepaid items are separate categories, although eligible credits or assistance may help with certain costs.
What credit score do I need?+
There is no single score for every mortgage. Loan program, lender, property, occupancy and the complete profile determine available options.
What is a good DTI?+
There is no universal target. Program and underwriting requirements differ, and a technically eligible ratio may still be uncomfortable for a household.
Who counts as a first-time homebuyer?+
Definitions vary. Some programs treat a person who has not owned a principal residence during the prior three years as first-time, while others use different rules.
Can I qualify using business bank statements?+
Eligible alternative-documentation programs may calculate income from qualifying business deposits after applying the required expense methodology.
Is flood insurance the same as homeowners insurance?+
No. Standard homeowners policies generally do not cover flood damage. Flood coverage is a separate policy or endorsement.