How to Buy a Home in Florida with Less Than 20% Down
- Jonathan Shupe
- Jun 16
- 4 min read
Updated: Jun 24
Do you think you need 20% down to buy a home in Florida? Think again.
When it comes to purchasing a home in Florida, many people believe they need to save up 20% for a down payment. This can seem daunting, especially with rising home prices and an increasing cost of living. The good news is: you don’t need 20% down to buy a home.
Let’s explore the options that make homeownership more accessible than you might realize.
Why You Don’t Need 20% Down
The belief that a 20% down payment is necessary often comes from the desire to avoid PMI (private mortgage insurance). However, many buyers, especially first-time homeowners, put down much less. In fact, the average down payment for first-time buyers is only 6-7%.
There are numerous mortgage programs designed to help buyers secure homes with 5%, 3%, or even 0% down.
Your Low Down Payment Options in Florida
1. FHA Loans – As Low As 3.5% Down
FHA loans are government-backed and are especially popular with first-time buyers. They are flexible regarding credit scores and allow for a low down payment.
Pros:
Accepts credit scores as low as 500.
Requires only a 3.5% down payment (with a credit score of at least 580).
Allows gift funds for the down payment.
Cons:
Mortgage insurance is required.
Loan limits can vary by county.
2. Conventional Loans – As Low As 3% Down
Many assume that conventional loans require 20% down. In reality, first-time buyers can purchase a home with as little as 3% down.
Pros:
Competitive interest rates.
You can cancel PMI once you achieve 20% equity.
Cons:
Stricter credit and income requirements exist for some programs.
3. VA Loans – 0% Down
If you’re a veteran, active-duty service member, or part of the National Guard or Reserves, you might qualify for a VA loan with no down payment required.
Pros:
No down payment.
No PMI.
Generally lower interest rates.
Cons:
Must meet specific military service requirements.
4. USDA Loans – 0% Down
USDA loans are targeted for eligible properties and buyers in rural and suburban areas. They offer 100% financing.
Pros:
No down payment.
Low mortgage insurance rates.
Ideal for many parts of Florida outside urban centers.
Cons:
Income limits apply.
The property must be located in a USDA-approved area.
📍 Florida First-Time Homebuyer Assistance
Florida provides down payment assistance (DPA) programs that can help if you’re short on funds. These often come in several forms, including:
Forgivable second mortgages
Deferred payment loans
Grants
An example is the Florida Hometown Heroes Program, which offers closing cost and down payment assistance to eligible Florida residents.
So, What’s the Catch?
There is no catch—only options that many buyers remain unaware of. Each loan has its qualifications, and not all will be the perfect fit. Collaborating with a trusted mortgage broker (like us 👋) can help you navigate the various programs and find the best fit for your unique needs.
Exploring Additional Resources for Buyers
Understanding your choices is crucial. Here, we summarize the primary options available to Florida homebuyers while yielding a more detailed exploration of the assistance programs.
Understanding Mortgage Insurance
When putting down less than 20%, many loans require you to pay mortgage insurance. PMI protects lenders in case you default on your loan. While this adds to your monthly cost, you can often cancel it once you have built sufficient equity in your home.
the Role of Down Payment Assistance Programs
Many buyers overlook down payment assistance, thinking they won't qualify. It's important to look into local DPA programs. Often, they can significantly reduce or eliminate the upfront costs of buying a home.
The Benefits of Working with Real Estate Professionals
Finding the right property is just as important as securing the right financing. Real estate agents have their finger on the pulse of the market. Their expertise can provide you with valuable insights and help you find homes that fit your budget and needs.
The Bottom Line
If a 20% down payment feels out of reach, don’t panic. The majority of Florida buyers don’t require that much for a down payment. Whether you’re looking at 5%, 3%, or even 0%, there’s likely a program suited to your situation.
Thinking about buying in Florida but not sure where to start? Let’s talk about your options! The first step is easier than you think.
Jonathan Shupe NMLS ID# 1649211 is Manager of Shupe Lending Group NMLS ID# 2478065. Jonathan Shupe and his team of loan officers are licensed in multiple states. Many of the borrowers of Shupe Lending Group are individuals who did not qualify at other lenders due to those lenders' overlays on government and conventional loans. We have a reputation for working with over 270 different lenders to offer our clients dozens of non-QM and alternative financing loan programs. Any non-QM mortgage loan program available in the market will be offered by our team at Shupe Lending Group. Our team is available 7 days a week, including evenings, weekends, and holidays.
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