Mortgage & Lending Options

For a first-time buyer, the right loan often matters more than the right house. Kelby connects first-time buyers with vetted lending partners who work the low-down-payment paths daily: FHA loans insured by the Federal Housing Administration with down payments as low as 3.5 percent, conventional options like Fannie Mae's HomeReady mortgage available with 3 percent down, and down payment and closing cost assistance through federal, state, and local programs.

The goal is a pre-approval built on real Florida numbers, taxes, insurance, flood coverage, and HOA dues included, before you tour a single home. That is what turns someday into a signed contract, and the First-Time Buyer Hub covers the programs, the myths, and the glossary in plain English.

A conventional mortgage is a home loan not insured or guaranteed by a government agency, and it comes in two broad shapes. A fixed-rate mortgage locks your interest rate for the life of the loan, so the principal and interest payment stays the same year after year. An adjustable-rate mortgage holds a fixed rate for an initial period, then adjusts on a schedule, which can mean a lower starting payment and more uncertainty later.

Conventional loans generally carry private mortgage insurance when the down payment is under 20 percent, and each lender sets its own pricing, fees, and credit requirements. The names are simple; the current numbers are not, which is why the honest next step is a conversation with a lending partner who quotes today's terms against your file.

Three government-backed programs cover a wide swath of buyers, each with a different structure straight from the official sources. FHA loans are insured by the Federal Housing Administration, part of HUD, and allow down payments as low as 3.5 percent with more flexible credit standards. VA loans are guaranteed by the U.S. Department of Veterans Affairs for veterans, active-duty service members, and eligible surviving spouses, and VA-backed purchase loans often require no down payment. USDA loans from the U.S. Department of Agriculture's Rural Development program offer no-down-payment financing for eligible households buying in qualifying areas.

Each program carries eligibility rules, income guidelines, and area maps that change over time. VA-eligible buyers should start on this site's Military and Veterans page, and the question-by-question detail on how each program plays out in Palm Beach County lives in the FAQ topics.

A jumbo mortgage is any home loan above the conforming loan limits that Fannie Mae and Freddie Mac can buy, limits the Federal Housing Finance Agency sets each year for each county. In Palm Beach and Broward luxury markets, where prices regularly clear those limits, jumbo financing is the standard tool for higher-priced homes.

Jumbo lenders underwrite differently: more documentation, larger down payment and cash reserve expectations, and rates priced by the individual lender for the individual deal. Kelby connects luxury buyers with lending partners who work these markets every day, and the luxury guidance on this site covers the buying side of that world.

Financing a rental runs on different rules than a primary home. Lenders typically expect larger down payments, higher cash reserves, and income that supports your existing debts plus the new property, and rental income counts differently depending on the lender and the property's history.

Kelby connects investors with lending partners who underwrite single-family rentals, condos, and short-term plays, and he is upfront that the cash flow math must survive taxes, insurance, and management before the mortgage payment. For 1031 exchange buyers, the financing timeline lands inside the exchange clock, another reason to line up the lender early.

Hard money and private lending are short-term, asset-based financing: the loan is secured by the property's value, usually including its after-repair value, rather than your full credit profile. Approval is faster and the money can close quickly, which is why flips, quick closings, auctions, and properties that cannot wait on conventional underwriting lean on it.

The tradeoffs are real: higher costs, shorter terms, and discipline required on the exit, because the plan is always to refinance or sell out. It is a tool for a specific job, not a permanent mortgage, and it deserves a straight conversation about the numbers before the contract is signed.

Construction loans fund the build itself. Lenders typically advance money in draws as construction reaches milestones, interest accrues during the build, and a construction-to-permanent loan converts into the long-term mortgage once the home is complete.

For buyers at the developments in this site's New Construction directory, the financing calendar matters as much as the floor plan: deposit timing, draw schedules, and builder timelines all shape your numbers. Kelby connects buyers with lending partners who know Florida new construction, so builder incentives and contract terms are handled correctly from the start.

Refinancing replaces your current mortgage with a new one, usually to lock a different rate, change the loan term, or both. A cash-out refinance replaces the mortgage with a larger loan and pays the difference to you in cash, turning home equity into liquidity for renovations, consolidation, or the next purchase.

Refinancing makes sense when the numbers genuinely move you forward: a lower monthly payment, a shorter term, or a planned use for the cash that beats the cost of pulling it out. It rarely makes sense just because a headline rate moved, and the only honest analysis runs today's numbers against the remaining cost of your current loan.