Question 1

How much are closing costs on a mortgage in St. Johns County?

Accepted Answer

Buyers typically pay about 2 to 4 percent of the loan amount in closing costs, so roughly $9,000 to $18,000 on a $450,000 loan. The biggest items are Florida documentary stamp tax on the note, intangible tax on the mortgage, title insurance, lender fees, and prepaid taxes and insurance for the escrow account. In St. Johns County the seller customarily pays for the owner's title policy, but this is negotiable and should be spelled out in the contract.

Question 2

What credit score do I need to buy a house in St. Augustine?

Accepted Answer

Conventional loans generally require a 620 minimum score, FHA loans go down to 580 with 3.5 percent down, and VA loans have no official minimum though most lenders want 580 to 620. A score above 740 gets you the best conventional pricing. If you are below those numbers, ask a lender about a plan to raise it rather than paying a higher rate for 30 years.

Question 3

Do I need flood insurance to get a mortgage in Ponte Vedra or Vilano Beach?

Accepted Answer

If the home is in a FEMA Special Flood Hazard Area, usually zone AE or VE, a federally backed lender must require flood insurance. Many properties east of the Intracoastal and along the San Sebastian and Matanzas rivers fall in these zones. Even outside a required zone, lenders and insurers often recommend a policy, and private flood insurance is sometimes cheaper than NFIP. Ask for an elevation certificate early.

Question 4

Can I use a VA loan on a house in Nocatee or Julington Creek?

Accepted Answer

Yes. VA loans work on most single-family homes, townhomes, and VA-approved condos anywhere in the county, with zero down payment and no monthly mortgage insurance. The VA funding fee is 2.15 percent for a first use with no down payment and is waived for veterans with a service-connected disability rating. CDD assessments and HOA dues are counted in your qualifying payment, so ask the lender to include them from the start.

Question 5

Is a builder's preferred lender a good deal?

Accepted Answer

Sometimes. Builders often offer $5,000 to $20,000 in closing cost credits or a rate buydown only if you use their lender and title company. Get a Loan Estimate from the builder's lender and one from an outside lender, then compare the total cost after the credit. In some cases the outside lender is still cheaper. You have the legal right to choose your own lender regardless of the incentive.

Question 6

How long does it take to close a mortgage in Florida?

Accepted Answer

A typical purchase loan closes in 30 to 45 days from contract. Condo loans, VA and FHA loans with repair conditions, and loans involving self-employment income can take longer. Delays in St. Johns County are most often caused by insurance binders, condo association questionnaires, and flood determinations, so get those started the week you go under contract.

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