How Much Do You Really Need to Buy a Home?

The Two Costs: Down Payment and Closing Costs

When you buy a home, you need money for two things: your down payment and your closing costs. Let's break them down for a $350,000 home, which is a typical price in affordable South Florida communities.

FHA Loan (3.5% Down)

Down Payment (3.5%)$12,250

Closing Costs (2–5%)$7,000–$17,500

Total Cash Needed$19,250–$29,750

VA Loan (0% Down)

Down Payment$0

Closing Costs (2–5%)$7,000–$17,500

Total Cash Needed$7,000–$17,500

With Hometown Heroes Assistance

Down Payment$0 (covered by program)

Closing Costs$0–$10,500 (partially covered)

Total Cash Needed$0–$10,500

What Are Closing Costs, Exactly?

Closing costs cover the administrative and legal work involved in the transaction. They typically include loan origination fees, appraisal fees, title insurance, recording fees, and prepaid items like property taxes and homeowners insurance. In Florida, closing costs typically run 2–5% of the purchase price.

Here's a secret most buyers don't know: you can negotiate for the seller to pay some or all of your closing costs. In many markets, this is standard practice.

How to Get to $0 Down

With the right combination of programs, many buyers purchase a home with almost no cash out of pocket:

Hometown Heroes covers up to $35,000 for down payment and closing costs
FL Assist adds another $10,000 in assistance
VA loans require zero down payment
Seller concessions can cover remaining closing costs

The Bottom Line

Don't let the "20% down" myth stop you from exploring homeownership. Most buyers put far less than 20% down. With Florida's assistance programs, you could buy a $350,000 home with as little as $0–$5,000 out of pocket. Talk to a lender to find out what's possible for your specific situation.