Financing Tips for First-Time New Home Buyers in Central Florida

Updated December 15, 2025
6 min read
aisha

aisha

Aisha is a content strategist with over 5 years of experience across multiple industries, with a strong focus on real estate marketing. At CFB, she leads content and SEO initiatives designed to improve local visibility, drive high-intent traffic, and support growth.

financing tips for first time home buyers

Key Takeaways

  • Pre-approval gives you a competitive advantage and helps determine your true purchasing power before you begin touring.
  • Credit preparation matters :small improvements can unlock better loan terms and lower monthly payments.
  • Down payments aren’t one-size-fits-all :many first-time buyers qualify for programs with 0–5% down.
  • Atlantic Bay Mortgage provides tailored loan guidance, including FHA, Conventional, VA, and assistance programs available in Florida.
  • Understanding closing costs, DTI, and loan options up front ensures a smooth experience as you move toward owning a CFB home.
  • CFB Homes offers a streamlined buying process, with support from pre-approval through contract, construction, and closing.

Buying a new construction home is one of the most important financial decisions a buyer will make and for first-time buyers in Central Florida, having a clear roadmap can reduce stress, improve loan eligibility, and unlock better mortgage terms.

This guide breaks down the essential financing steps, common loan options, and expert insights from our lending partner, Atlantic Bay Mortgage, to help buyers navigate the purchase process with confidence.

1. Assess Your Financial Goals and Build a Plan

Buying your first home is a major financial milestone, and having a clear plan from the start helps ensure a smooth and confident experience. With new construction homes from CFB Homes, understanding your financial readiness is especially important both for securing the right loan program and for choosing the floor plan or Quick Move-In home that fits your long-term goals.

Before touring communities or selecting design features, take time to evaluate your current financial health, future plans, and the role homeownership will play in your lifestyle. A strong foundation now makes the rest of the buying journey more predictable and less stressful.

Key Considerations for First-Time Buyers

1. Current Housing Budget

What do you currently spend on rent and utilities? How comfortable are you with adjusting that number? This becomes the baseline for estimating a realistic monthly mortgage payment.

2. Available Funds

How much do you have saved for a down payment, closing costs, and initial move-in expenses? Many first-time buyers overestimate what they need.

3. Overall Financial Planning

Are you able to maintain other financial goals such as retirement savings, emergency funds, or debt payoff while planning for a home purchase? Healthy budgeting keeps homeownership sustainable.

4. Property Requirements

What do you need today and what will you need a few years from now?
 Consider:

  • Bedroom count

  • Work-from-home space

  • Commute needs

  • Preferred communities

  • Whether a one-story or two-story home fits your lifestyle

CFB Homes offers versatile floor plans designed to grow with you, so clarifying these needs early helps narrow the right options.

5. Credit Health

What is your current credit score? Could a few months of improvement unlock a better rate or more flexible loan terms? Atlantic Bay Mortgage can help you review your credit profile and identify quick wins that may strengthen your pre-approval.

Understanding these factors provides a clear picture of your realistic home-buying budget. From there, lenders evaluate key metrics such as your debt-to-income ratio (DTI) and overall credit profile  to determine what you qualify for and which options best match your goals.

2. Credit Preparation: What Buyers Should Do Before Applying

A strong credit profile can lower interest rates and expand loan options.

Practical steps 3–6 months before applying

  • Check your credit reports with the major bureaus for errors

  • Dispute inaccuracies (collections you paid, incorrect late payments, etc.)

  • Avoid new lines of credit (store cards, car loans, “buy now, pay later” accounts)

  • Keep credit utilization low (aim for well below 30% of each card limit)

Atlantic Bay Mortgage can help you review your credit profile and run scenarios. Small improvements sometimes unlock better loan terms or more flexibility on your purchase price.

3. Down Payments: How Much Do You Really Need?

Many first-time buyers mistakenly assume they need 20% down. Down payment can strengthen your loan profile and may remove the need for private mortgage insurance (PMI), which adds an extra monthly cost. However, for first-time buyers, 20% is a goal not a requirement.

Many loan programs designed for new buyers offer much lower minimum down payments, and even conventional mortgages provide flexibility depending on credit, income, and eligibility.

Here’s a look at common minimum down payment options available to first-time buyers:

Common Down Payment Ranges

Additional Cash Buyers Should Expect

  • Earnest money deposit

  • Closing costs (often 3–5% of purchase price)

  • Upgrades or personalization costs (when building from scratch)

Florida assistance programs

Florida offers various state-backed down payment and closing cost assistance options for eligible first-time buyers, often paired with a 30-year fixed-rate first mortgage.

These can come in the form of:

  • Deferred second mortgages

  • Low-interest second liens

  • Programs like Florida Assist, FL HLP, and other state initiatives designed to reduce upfront costs.

4. Get Pre-Approved Before Touring Homes

Pre-approval strengthens a buyer’s position dramatically especially in competitive markets like Daytona Beach.

Benefits of Getting Pre-Approved

  • Understand exact budget

  • Lock in interest rates (when applicable)

  • Strengthen negotiating position

  • Prevent delays in securing a Quick Move-In home

Pro Tip:
CFB Homes buyers who complete pre-approval early often secure homes faster, especially when limited inventory is available.

5. Know Your Loan Options in Central Florida

While Atlantic Bay Mortgage will tailor a loan to your file, it helps to understand the main categories you’ll hear about.

Conventional Loans

A solid fit for many first-time buyers with good to excellent credit.

  • Often lower long-term mortgage insurance costs

  • Flexible down payments (some as low as 3% for eligible first-time buyers)

  • Competitive for buyers in Daytona Beach and East Orlando new construction markets

FHA Loans

Popular with buyers who:

  • Are still building their credit history

  • Want a lower down payment

Good option when you need a bit more flexibility on credit scores and DTI.

VA Loans

Ideal for:

  • Eligible active-duty military, veterans, and certain surviving spouses

  • Buyers who want 0% down and no monthly mortgage insurance

These loans can significantly reduce upfront and long-term costs for qualifying buyers.

USDA Loans

Potentially available in select less densely populated areas of Central Florida:

  • 0% down for eligible buyers

  • Income and area restrictions apply

Your Advantage: Instead of researching every program on your own, your Atlantic Bay Mortgage loan officer can walk you through which combination of loan + assistance best fits your income, credit, and target CFB community.

6. Match Financing to the Right CFB Home & Community

Once your pre-approval is in place, you can confidently explore CFB Homes communities and floor plans.

Clarify your “must-haves” vs “nice-to-haves”

Before you tour, outline:

  • Must-haves: bedroom count, commute time, school zone needs, one-story vs two-story, etc.

  • Nice-to-haves: lofts, flex rooms,upgraded kitchens, car garages

  • Deal-breakers: certain commute times, lot types, or community locations

Your CFB Homes sales professional can then:

  • Align your priorities with the right community and floor plan

  • Show you Quick Move-In homes that match your budget and timing

  • Coordinate with Atlantic Bay Mortgage so financing and selection stay in sync

7. From Contract to Closing: How Financing Fits Into the Final Steps

Once you choose your home and sign a purchase agreement with CFB Homes, the financing process moves into its final stages.

Typical milestones

  1. Loan application & disclosures
    You’ll formally complete your mortgage application with Atlantic Bay Mortgage.

  2. Appraisal & underwriting

    • The lender orders an appraisal to confirm the home’s value.

    • Underwriters review your documents, credit, and the property details.

  3. Conditional approval & conditions clear

    • You may be asked for updated documents (recent pay stubs, bank statements, letters of explanation, etc.).

  4. Clear to close

    • Once all conditions are satisfied, you receive a “clear to close.”

  5. Closing & keys

    • You’ll review and sign loan documents.

    • Funds are disbursed, the transaction is recorded, and you receive the keys to your new CFB home.

What's Next?

Ready to explore your financing options for a new construction home in Central Florida? Connect with CFB Homes and our trusted lending partner, Atlantic Bay Mortgage, to begin your pre-approval and take the next step toward homeownership.

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Most first-time buyers don’t need 20% down. Many qualify for 3%–5% down on conventional loans, 3.5% down on FHA loans, and even 0% down for eligible VA buyers.

Yes — pre-approval should be your first step. It helps you understand your budget, strengthens your buying position, and allows you to secure a Quick Move-In home faster. 

Credit requirements vary by loan program, but many first-time buyers qualify with scores in the mid-600s and above. Atlantic Bay Mortgage can also advise on simple credit improvements that may help you secure better loan terms.

Yes. Florida offers several programs that provide down payment and closing cost assistance for eligible first-time buyers. Your Atlantic Bay Mortgage loan officer can determine which programs you qualify for and how they pair with your CFB Homes purchase.

Closing costs typically range from 2–5% of the purchase price, depending on loan program and rate structure. Atlantic Bay Mortgage will provide a clear cost breakdown during your pre-approval so you can plan ahead confidently.

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