One of the biggest myths in home buying is that you need 20% down. In Florida, you may be able to buy with as little as 0–3.5% — and there are programs that help cover even that. Here's a complete breakdown by loan type, income level, and situation.
The 20% Myth — Let's Kill It Right Now
If someone told you that you need 20% down to buy a home, they were wrong. That rule hasn't been required since the 1980s. Today, Florida buyers are purchasing homes with as little as zero down — and hundreds of thousands of first-time buyers every year use programs specifically designed to reduce the upfront cost of homeownership.
Here's the real answer to "how much do I need?" — and it depends entirely on which loan program you use.
Down Payment Requirements by Loan Type
FHA Loans — 3.5% Down
FHA loans are the most popular first-time buyer product in the country, and for good reason. They offer:
- Minimum down payment: 3.5% of the purchase price
- Credit score requirement: 580+ (500–579 with 10% down)
- Loan limit in most Florida counties (2026): $524,225 for a single-family home (higher in high-cost areas)
- Mortgage insurance: Required — both an upfront MIP (1.75% of the loan, financed into the loan) and a monthly MIP
- Down payment: $12,250 (3.5%)
- Upfront MIP financed: ~$5,906 (added to the loan)
- Monthly MIP: ~$178/month
- Total out of pocket at closing (down payment + closing costs): approximately $17,000–$22,000
FHA is ideal for buyers with solid income but limited savings or credit scores in the 580–680 range.
Conventional 97 — 3% Down
Fannie Mae and Freddie Mac both offer conventional programs with just 3% down for first-time buyers:
- Fannie Mae HomeReady: 3% down, designed for low-to-moderate income buyers
- Freddie Mac Home Possible: 3% down, income limits apply
- Standard Conventional 97: 3% down, available to first-time buyers (no income limits)
- Credit score requirement: 620 minimum (700+ recommended for best rates)
- PMI: Required at less than 20% down — but it can be removed once you reach 20% equity
- Down payment (3%): $10,500
- PMI: approximately $100–$130/month (cancels when you hit 20% equity)
- Total out of pocket at closing: ~$18,000–$20,500
VA Loans (for veterans & active military)
- Down payment: $0 required
- PMI: None — ever
- Funding fee: 2.15% of the loan amount for first use (can be financed in); waived for veterans with a service-connected disability
USDA Loans (rural areas)
- Down payment: $0
- Credit score: Minimum 640 recommended
- Income limits: Household income within 115% of area median
- Guarantee fee: 1% upfront (financed) + 0.35% annual fee
Florida Down Payment Assistance Programs
Florida Assist (FL Assist): Up to $10,000 deferred second mortgage at 0% interest — repaid only when you sell or refinance.County-level programs: Hillsborough County offers up to $20,000; Palm Beach County up to $60,000 in some cases. Hundreds of millions in DPA goes unused every year because buyers simply don't know it exists.Realistic Cash Estimates at Closing
| Scenario | Down Payment | Total Cash Needed |
|---|---|---|
| FHA, $325K purchase | 3.5% = $11,375 | $18,000–$21,000 |
| FHA + FL Assist | 3.5% = $11,375 | $8,000–$11,000 |
| Conventional 97, $350K | 3% = $10,500 | $18,000–$20,500 |
| VA, $400K | $0 | $3,000–$5,000 (closing only) |
| Conventional 10%, $425K | $42,500 | $50,500–$53,500 |
The Bottom Line
You almost certainly don't need 20% down to buy a home in Florida. The key is knowing which program fits your situation.
Want to know exactly what you'd need for your specific scenario? Reach out to Nicholas Menard — we'll calculate your options, check DPA eligibility, and have a clear number in front of you within the day.Download the Free First-Time Buyer Guide →Nicholas Menard
NMLS #202425 · Senior Loan Officer
Nicholas Menard is a senior loan officer at Edge Home Finance specializing in DSCR investor loans, first-time buyer programs, and refinancing strategies for Florida homeowners and investors.
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