I talk to buyers every day who are surprised by how little they actually need to buy a home. The number you hear on the news is always 20% down. That is for conventional loans if you want to avoid PMI. But the reality for most first-time buyers in Florida is totally different.
Let's break down the real out-of-pocket costs for buying a home in Florida, by price point and loan type.
Down Payment Requirements by Loan Type
Your loan type determines your minimum down payment. Here is the full breakdown:
FHA Loan: 3.5% Down
The most popular option for first-time buyers. Minimum credit score of 580. On a $300,000 home, you need $10,500 down. Your down payment can be covered by Hometown Heroes or FL Assist assistance programs.
Conventional Loan: 3% Down
Fannie Mae's Conventional 97 program allows just 3% down. Minimum credit score 620. On a $300,000 home, you need $9,000 down. Better rates than FHA if you have good credit, but stricter DTI requirements.
VA Loan: 0% Down
For veterans, active-duty military, and surviving spouses. No down payment needed. No PMI. Most lenders want 620+ credit. Available for homes up to the VA county loan limit.
USDA Loan: 0% Down
For eligible suburban and rural areas in Florida. No down payment. Income limits apply (typically up to $110,650 for a 1-4 person household). Available in many areas of Palm Beach and Broward counties.
Total Out-of-Pocket Costs: Real Examples
Your total cash needed includes the down payment plus closing costs. Here is what that looks like at three common price points in South Florida.
$250,000 Home (Condo or Townhome)
- FHA 3.5% down: $8,750
- Closing costs (3%): ~$7,500
- Total out of pocket: ~$16,250
- With Hometown Heroes (5% of loan, ~$12,100): down payment covered, part of closing costs covered, roughly $4,000+ still needed
Condos in Lake Worth Beach, Deerfield Beach, and Margate start in this range.
$350,000 Home (Townhome or Starter Home)
- FHA 3.5% down: $12,250
- Closing costs (3%): ~$10,500
- Total out of pocket: ~$22,750
- With Hometown Heroes (5% of loan, ~$16,900): down payment covered, part of closing costs covered, roughly $5,000+ still needed
Townhomes and small homes in Boynton Beach, Coconut Creek, and Pompano Beach.
$500,000 Home (Single-Family Home)
- FHA 3.5% down: $17,500
- Closing costs (3%): ~$15,000
- Total out of pocket: ~$32,500
- With Hometown Heroes (5% of loan, ~$24,100): down payment covered, part of closing costs covered, roughly $8,000+ still needed
Single-family homes in West Boca, Boynton Beach, and Delray Beach.
How Down Payment Assistance Changes Everything
This is the part most buyers do not know about. Florida has excellent programs that can reduce your out-of-pocket costs to nearly zero.
- Hometown Heroes Program: Up to $35,000 in down payment and closing cost assistance, equal to 5% of your loan amount (whichever is less). 0% interest, deferred loan with no monthly payments. Eligible for full-time workers in qualifying occupations including health care, education, first responders, public safety, child care, and more. Funding is limited and first-come, first-served.
- FL Assist Program: Up to $10,000 in down payment help for first-time buyers. Can be combined with an FHA loan (but not with Hometown Heroes).
Between these programs, many of my buyers have reduced how much of their own cash they bring to closing. Assistance amounts are not guaranteed and depend on your loan size, eligibility, and funding availability at the time you apply. Read the full financing guide for details on every program.
Program details, funding availability, and terms are current as of October 2026 and change frequently. Confirm current program details, availability, and terms with your lender at the time you apply.
The Bottom Line
If you have $5,000 to $15,000 saved, you can absolutely buy a home in Florida right now. If you qualify for down payment assistance, you might need much less. The numbers are way lower than most people think, and your lender can tell you exactly what you will need to bring to closing.
Use our affordability calculator to estimate your price range, then call or text Ryan or Austin to find out exactly what programs you qualify for.