If you're buying, refinancing, or investing on the Florida coast, these are the words your lender, insurance agent, and Realtor will throw at you. Here's what each one actually means — and why it matters to your loan.
FEMA flood zone with 1% annual flood chance and a defined Base Flood Elevation (BFE). Common in Florida Keys canal-front and low-elevation coastal areas. Flood insurance is required for federally backed mortgages. See also: V-zone, FEMA flood zone.
A mortgage that qualifies a self-employed borrower based on 12–24 months of personal or business bank statements instead of tax returns. Useful for business owners, real estate agents, and 1099 contractors. See: non-QM programs.
The elevation a building must meet or exceed to comply with floodplain regulations. Lower elevation = higher insurance cost. Pre-FIRM homes (built before flood maps) often face the steepest premiums.
Short-term financing (typically 6–12 months) used to buy a new property before selling an existing one, or to fund renovation before a refinance. Higher rates, but allows speed and flexibility. See: bridge loans.
Buy, Rehab, Rent, Refinance, Repeat. An investor strategy of acquiring a distressed property, renovating it, renting it, then refinancing to pull cash out and recycle into the next deal.
Capitalization rate. Annual net operating income divided by purchase price. A core investor metric — coastal Florida cap rates are typically 5–8% for LTR and can exceed 10% for well-performing STR. Run the Investment ROI calculator.
Annual pre-tax cash flow divided by total cash invested. Different from cap rate because it accounts for financing — leverage amplifies cash-on-cash.
A refinance where the new loan is larger than the old, with the borrower receiving the difference as cash. Common uses: renovation, debt consolidation, or down payment on an investment property.
Citizens Property Insurance Corporation. Florida's state-backed insurer of last resort. Many coastal homeowners end up with Citizens because private carriers won't write the risk. Premiums and coverage limits change annually with state legislation.
The Mortgage Dock's proprietary scoring tool that estimates wind, flood, and elevation cost impact on a property's qualifying mortgage amount. Educational only — not a rate quote or insurance estimate. Run yours →
A mortgage that conforms to Fannie Mae or Freddie Mac guidelines, including loan size limits set annually by the FHFA. The standard, lowest-friction mortgage for most buyers.
A condo that operates like a hotel — short stays, on-site rental management, often hotel amenities. Almost always non-warrantable; requires specialty lender. See: non-warrantable condo financing.
Florida documentary stamp tax. On real estate: 70 cents per $100 of sale price (35¢ in Miami-Dade) on the deed; 35 cents per $100 on the mortgage. Paid at closing — often $1,000s on a coastal Florida purchase. Calculate yours: closing costs tool.
The ratio of a property's gross rental income to its mortgage payment. A DSCR of 1.0 means rent exactly covers the loan; >1.0 means it covers it with cushion. Investor loans use DSCR instead of personal income. Run the DSCR Analyzer.
Total monthly debt obligations divided by gross monthly income. Conforming loans typically cap at 45–50%; jumbos and non-QM allow higher with compensating factors.
A federally designated area indicating flood risk. Common Florida designations: V-zone (high velocity wave action — coastal), AE-zone (1% annual flood chance with established base flood elevation), X-zone (moderate to minimal risk). V-zones are the most expensive to insure.
Federal Housing Administration-insured mortgage. Allows down payments as low as 3.5% with credit scores from 580. Useful for first-time buyers but has insurance premiums for the life of the loan in most cases. See: FHA programs.
Asset-based short-term loan secured by real estate, typically 6–24 months. Used by investors for fix-and-flip or bridge scenarios. Higher rates but fast close (often 7–14 days).
The FHA-insured reverse mortgage available to homeowners 62+. Three payout options: tenure (monthly), term (set period), or line of credit (which grows over time).
The body that manages a condo or planned community. For lending, the HOA's financial health, owner-occupancy ratio, master insurance, and any litigation are critical to whether a building is warrantable.
Florida's nonrecurring tax on the obligation to pay money under a mortgage. Currently 0.2% of the mortgage amount. Paid at closing in addition to doc stamps.
A mortgage above the conforming loan limit (varies by county). In coastal Florida, most condos and canal-front homes require jumbo financing. Underwriting is stricter — reserves, DTI, and credit thresholds are higher. See: jumbo programs.
A property rented for 12 months or longer, typically with a lease. LTR loans (DSCR or conventional investor) are simpler to underwrite than STR loans.
Loan amount divided by property value. Lower LTV = lower risk to the lender = better pricing. Coastal lenders often cap LTV lower on V-zone or non-warrantable properties.
A state grant program that funds wind mitigation improvements (roof, openings) for eligible Florida homeowners. Can lower future insurance premiums substantially.
Non-Qualified Mortgage. A loan that doesn't meet the strict CFPB Qualified Mortgage rules — used for self-employed borrowers (bank statement), foreign nationals, ITIN borrowers, and non-warrantable condos. See: non-QM programs.
A condo that doesn't meet Fannie Mae or Freddie Mac guidelines — usually due to high investor concentration, HOA litigation, single-entity ownership over 10%, condotel status, or master insurance gaps. Requires specialty (non-QM) financing.
The percentage of units in a condo building occupied by their owners (vs. rented out). Fannie/Freddie typically require >50% for warrantable status. Condotels and STR-heavy buildings often fail this test.
Required on conventional loans with less than 20% down. Removable once the loan-to-value ratio reaches 78–80%, depending on the lender and loan.
A home built before the original FEMA Flood Insurance Rate Map for the area was published (1974 in most of Florida). Pre-FIRM properties often pay higher flood premiums and have more limited coverage options.
A refinance to lower the interest rate, change the loan term, or both — without taking cash out. Break-even = closing costs ÷ monthly savings. Run the refinance calculator.
A loan that lets homeowners 62+ convert home equity into cash with no monthly payment. The loan is repaid when the home is sold, the borrower moves out, or passes away. HECM is the most common type.
A vertical structure protecting waterfront property from wave erosion. For canal-front homes, seawall age and condition heavily affect appraisal value and insurability. Replacement can cost $50K–$200K.
A property rented for periods of less than 30 days, typically through Airbnb or VRBO. STRs face zoning restrictions in some Florida coastal markets — the Keys allow them in many areas with proper licensing. See: DSCR for coastal STRs.
Recurring flooding caused by high tides, often without storms. A growing issue in Florida Keys and South Florida coastal areas. Affects insurability and long-term property value.
USDA Rural Development loan. 100% financing for eligible rural and some suburban properties. Florida has more USDA-eligible areas than most people realize. See: USDA programs.
A mortgage guaranteed by the U.S. Department of Veterans Affairs for eligible veterans, active-duty service members, and certain spouses. No down payment, no PMI. See: VA programs.
FEMA's highest-risk coastal flood zone, subject to high-velocity wave action. Common on Florida beachfront and barrier islands. Insurance is significantly more expensive; some carriers won't write here.
A Florida-specific home inspection that documents construction features (roof shape, attachment, openings, etc.) that reduce wind damage risk. Strong wind mitigation can cut wind insurance premiums by 30–60%.
If a term isn't here, ask Marina. She's trained on every term, program, and edge case in our universe — and she'll explain it in the context of your deal.