How Much Do You Have to Put Down on a House in Florida?

A down payment is a portion of a home’s total purchase price paid upfront, reducing the amount financed through a mortgage and influencing loan terms. The specific amount required varies considerably, depending on the type of mortgage, lender criteria, and buyer’s financial profile. Understanding these variations is important for anyone considering homeownership in Florida.

Common Loan Types and Their Minimum Down Payments

Conventional loans are a common mortgage option from private lenders, adhering to guidelines set by Fannie Mae and Freddie Mac. The minimum down payment can be as low as 3% of the home’s purchase price.

Putting less than 20% down on a conventional loan usually requires Private Mortgage Insurance (PMI). PMI protects the lender if the borrower defaults, adding an additional monthly cost, typically ranging from 0.46% to 1.5% of the loan amount annually.

Borrowers can request to cancel PMI once their loan-to-value (LTV) ratio reaches 80%. A 20% or larger down payment allows borrowers to avoid PMI entirely, potentially leading to lower monthly payments. While a 3% down payment makes homeownership accessible, a substantial down payment offers long-term financial advantages.

FHA loans, insured by the Federal Housing Administration, make homeownership accessible for first-time buyers or those with limited savings or credit challenges. These loans feature more flexible credit guidelines than conventional mortgages. For borrowers with a credit score of 580 or higher, the minimum down payment is 3.5% of the purchase price.

If a borrower’s credit score is between 500 and 579, a 10% down payment is required. FHA loans also require both an upfront mortgage insurance premium (MIP) and annual MIP. The upfront MIP is 1.75% of the loan amount and can be paid at closing or rolled into the loan balance.

VA loans offer an advantage for eligible veterans, active-duty service members, and certain surviving spouses. Guaranteed by the U.S. Department of Veterans Affairs, these loans allow qualified individuals to purchase a home with no down payment. This zero-down option reduces the upfront financial burden of homeownership.

Eligibility for VA loans requires meeting specific service requirements. While no down payment is required, VA loans include a funding fee. This fee varies based on the down payment amount and whether it is a first-time or subsequent use of the VA loan benefit.

USDA loans, backed by the U.S. Department of Agriculture, promote homeownership in eligible rural areas. Similar to VA loans, qualifying borrowers can purchase a home with no down payment. These loans are designed for low-to-moderate income individuals and families.

Properties must be in designated rural areas, and borrowers must meet specific income limits. The program also involves an upfront and annual guarantee fee, calculated as a percentage of the loan amount.

Jumbo loans are non-conforming mortgages exceeding Fannie Mae and Freddie Mac loan limits for conventional loans. Used for higher-priced properties, they carry stricter underwriting requirements. The down payment for a jumbo loan is higher than for conforming loans.

While some lenders may offer jumbo loans with a 10% down payment, a common expectation ranges from 10% to 30% down. Borrowers with excellent credit scores and strong financial profiles may access options with lower down payment requirements.

Florida Down Payment Assistance Programs

Florida offers various down payment assistance programs to help residents with homeownership. Many are administered through the Florida Housing Finance Corporation. These initiatives often provide funds as second mortgages, deferred loans, or grants.

The Florida Housing Homebuyer Program provides 30-year fixed-rate first mortgages to eligible first-time homebuyers. Borrowers can combine it with Florida Housing’s second mortgage programs for down payment and closing costs. Eligibility requires a minimum credit score of 640, completion of an approved homebuyer education course, and meeting county-specific income and purchase price limits.

The Florida Assist Second Mortgage Program (FL Assist) offers up to $10,000 for down payment or closing costs. This is a 0% interest, deferred second mortgage, meaning payments are not required until the first mortgage is paid off, the home is sold, transferred, or no longer used as a primary residence. This assistance can be used with conventional, FHA, VA, or USDA loans.

The Florida Homeownership Loan Program (FL HLP) provides up to $10,000 in assistance as a second mortgage. Unlike FL Assist, FL HLP may carry a 3% interest rate and require monthly payments over a 15-year term. The balance of this loan becomes due if the property is sold, refinanced, or ceases to be the primary residence.

Florida Housing also offers programs like HFA Advantage (FL Plus), which can provide 3%, 4%, or 5% of the first mortgage amount as a forgivable second mortgage. This assistance is often forgiven at a rate of 20% per year over five years, provided the borrower remains in the home. These programs reduce the upfront cash needed, making homeownership more attainable.

Other Upfront Costs to Consider

Beyond the down payment, homebuyers in Florida should prepare for other upfront costs. These expenses, known as closing costs, are fees paid at the closing of a real estate transaction. While the down payment is a significant sum, closing costs can add thousands of dollars to the total cash required to finalize a home purchase.

Closing costs in Florida typically range from 2% to 5% of the total loan amount or purchase price. For a median-priced home, this can translate to several thousand dollars. These costs cover services and administrative tasks necessary to transfer property ownership and secure the mortgage.

Common closing costs include loan origination fees, charged by the lender for processing the mortgage application. Appraisal fees are paid to a professional appraiser who assesses the home’s value. Title insurance, for the lender and owner, protects against future claims to the property’s title.

Other expenses include attorney fees and recording fees paid to the local government to record the new deed and mortgage. Buyers may also encounter survey fees and credit report fees. Additionally, inspection fees, like home or pest inspections, are paid by the buyer before closing to assess the property’s condition.

Buyers commonly fund an escrow account at closing, which holds prepaid expenses like property taxes and homeowner’s insurance. Lenders establish these accounts to ensure ongoing costs are paid on time, collecting a portion with each monthly mortgage payment.