You don't need 20% down to buy a home in Florida.
Florida has more low down payment mortgage options than most buyers realize — from FHA and VA to down payment assistance programs that can cover your upfront costs entirely. Here's what's available and how each one works.
Four paths to homeownership with less money down
Each program has its own down payment minimum, credit requirements, and mortgage insurance structure. The right choice depends on your credit profile, income, and how long you plan to stay in the home.
Federal Housing Administration
Government-backed loan with more flexible credit requirements than conventional. Available for single-family homes, townhomes, and FHA-approved condo buildings.
- 580+ FICO for 3.5% down
- 500–579 FICO eligible with 10% down
- Gift funds allowed for down payment
- Mortgage insurance premium (MIP) required — drops at year 11 with 10%+ down, or stays life of loan with less than 10%
- Compatible with most down payment assistance programs
Department of Veterans Affairs
For veterans, active-duty service members, and eligible surviving spouses. No monthly mortgage insurance. One of the most powerful lending programs available — if you earned it, use it.
- Zero down payment, 100% financing
- No monthly mortgage insurance premium
- One-time funding fee (can be financed into the loan)
- Competitive rates — typically below conventional
- Available for single-family homes and VA-approved condos
U.S. Dept. of Agriculture
Zero-down financing for buyers purchasing in USDA-eligible areas — which includes many suburban and rural parts of Florida. Income limits apply.
- No down payment required
- Annual guarantee fee replaces traditional PMI
- Income limits based on household size and county
- Property must be in an eligible area (more of Florida qualifies than buyers expect)
- Primary residence only
Fannie Mae & Freddie Mac 3%
Fannie Mae's HomeReady and Freddie Mac's Home Possible programs allow 3% down on a conventional loan with income limits. PMI is required but cancels automatically at 20% equity — unlike FHA MIP.
- 620+ FICO required; better pricing at 680+
- Income limits apply (typically 80% of area median income)
- PMI cancels when you reach 20% equity
- Co-borrower income can be used even if they won't occupy
- Available for condos, townhomes, and single-family
Florida has more DPA programs than most buyers realize
Down payment assistance programs can cover part or all of your upfront costs — often as a forgivable second mortgage or a grant. We know what's currently funded, what you qualify for, and how to stack programs when eligible.
Florida Housing Plus TBA — Forgivable Second Mortgage
Available to first-time homebuyers across Florida, this program provides a 3%, 4%, or 5% second mortgage that is forgiven over time — no repayment required as long as the borrower remains in the home for the required period. One of the most borrower-friendly DPA structures available in the state. Income and purchase price limits apply.
Hometown Heroes — Up to $35,000 Second Mortgage
Florida's Hometown Heroes program provides 5% of the loan amount — up to $35,000 — as a second mortgage with no interest and no monthly payments. Available to eligible community workforce occupations including educators, healthcare workers, first responders, law enforcement, and other qualifying employment categories. The second mortgage requires no repayment until the home is sold, refinanced, the first mortgage is paid off, or the borrower no longer occupies the property as a primary residence. Currently exhausted for the season and expected to reopen this summer. Worth planning ahead for eligible buyers.
Florida Bond + Florida TBA Assist
Florida's bond program pairs a below-market first mortgage rate with a second mortgage through the Florida TBA Assist program. Two second mortgage options are available: $10,000 with zero interest and zero monthly payments (deferred until sale, refinance, or payoff), or $12,500 which is repayable with interest. The below-market rate on the first mortgage makes this one of the strongest first-time buyer combinations in the state. Income and purchase price limits apply.
Miami-Dade HFA — Down Payment & Closing Cost Assistance
The Housing Finance Authority of Miami-Dade County offers up to $15,000 in down payment and closing cost assistance for first-time buyers purchasing in Miami-Dade County. Compatible with FHA, VA, and conventional loans. Minimum 660 FICO for government loans, 640 for conventional. Homebuyer education required.
MDEAT — Miami-Dade Economic Advocacy Trust
The Miami-Dade Economic Advocacy Trust program provides down payment and closing cost assistance specifically for buyers purchasing in Miami-Dade County. Income limits and property restrictions apply. If you are buying in the county and need help with upfront costs, this is worth a conversation.
Lee County HFA — Own a Home Opportunity
The Lee County Housing Finance Authority's program provides $10,500 in DPA for buyers in Charlotte, Collier, DeSoto, Lee, and Sarasota Counties — and $17,500 for Palm Beach County. Compatible with FHA, VA, USDA, and eligible conventional loans. First-time buyer requirement. Minimum 640 FICO.
FHA 100 — Zero Out-of-Pocket Purchase
A CPMS-structured combination of FHA financing with a second mortgage to cover down payment and closing costs — allowing qualified buyers to purchase with essentially no money out of pocket. 101.5% total financing. Built for buyers who have the income to support the payment but limited cash reserves. Ask us if this fits your situation.
How much should you actually put down?
The right down payment isn't always the largest one you can afford. Here's how to think through the tradeoff honestly.
Reasons to put less down
- Keep cash reserves for emergencies — 3 to 6 months of expenses in the bank matters more than eliminating PMI
- Opportunity cost — cash deployed into a down payment is cash not available for investments or other uses
- Florida property appreciation can work in your favor regardless of how much you put down
- Down payment assistance programs may cover the gap for you at no long-term cost
- Getting into a home sooner means starting to build equity sooner
Reasons to put more down
- Eliminate or reduce monthly mortgage insurance costs, which adds up over time
- Lower monthly payment, which improves your debt-to-income ratio
- Slightly better interest rate on conventional loans — typically 0.25–0.5% improvement at 20% down vs. 5%
- More equity position from day one — matters if the market softens
- Stronger offer in competitive situations — sellers see higher down payments as lower risk
A word on mortgage insurance
PMI and MIP get a bad reputation — but they're the cost of getting into a home with less cash down, and that tradeoff often makes financial sense. On a conventional loan, PMI cancels automatically when you reach 20% equity. On an FHA loan with less than 10% down, MIP stays for the life of the loan — which is one reason some buyers with strong credit opt for conventional even at a slightly higher rate.
The right answer depends on your credit score, how long you plan to stay in the home, and whether a down payment assistance program changes the math entirely. That's exactly the kind of conversation worth having with one of our loan officers before you decide.
Not sure which option fits your situation?
Every buyer's picture is different. Let's run the numbers together and find the path that makes the most sense for you.
