First-Time Home Buyer Loans in Florida
Low down payment mortgages and Florida down payment assistance for first-time buyers across Florida, with guidance from pre-approval to closing.
Who counts as a First-Time Home Buyer?
For many loan and assistance programs, a first-time Home Buyer is someone who has not owned a principal residence during the past three years. That means a previous homeowner may still qualify as a first-time Home Buyer after enough time has passed.
Programs can use their own definitions and may also set income, purchase price, property and education requirements. Before you begin shopping, we can review the programs that may fit your purchase and confirm the guidelines that apply to your file.
First-Time Home Buyer loan options
Conventional low down payment
Eligible buyers may purchase with as little as 3%* down through programs such as HomeReady and Home Possible. Private mortgage insurance may apply, and it can be removed later when applicable cancellation and termination requirements are met.
FHA
FHA financing may allow 3.5%* down with a 580 or higher credit score, subject to program requirements. It can offer more flexible credit and debt-to-income guidelines than some other options.
VA
Eligible veterans, service members and qualifying surviving spouses may be able to use a VA loan with no down payment. Eligibility, property standards and lender requirements apply.
USDA
USDA financing may offer no-down-payment options in eligible areas. Availability varies across Florida, and eligibility depends on the property address and household income.
Compare First-Time Home Buyer loan options
Loan guidelines can change by program, property and borrower qualification. The table is a starting point for a pre-approval conversation.
| Feature | Conventional | FHA | VA | USDA |
|---|---|---|---|---|
| Minimum down payment | As low as 3% for eligible buyers* | From 3.5% for eligible borrowers* | No down payment for eligible borrowers | No down payment in eligible areas |
| Typical credit score | Typically 620 minimum | 580 or higher for 3.5%* down, subject to program rules | No universal minimum set by VA | Program and lender requirements apply |
| Mortgage insurance | PMI may apply below 20%* down | Upfront and monthly mortgage insurance may apply | Funding fee may apply unless exempt | Upfront and annual guarantee fees may apply |
| May fit best | Buyers with qualifying credit who want flexible property and pricing options | Buyers seeking more flexible credit and debt-to-income guidelines | Eligible military-connected borrowers purchasing an owner-occupied home | Buyers purchasing an eligible property with qualifying household income |
The true cost of buying a home in Florida
Down payment and escrow deposit
Plan for the down payment and the good faith deposit that is usually due shortly after an offer is accepted.
Closing costs
Costs can include lender fees, title insurance, Florida documentary stamp tax on the mortgage note and intangible tax on the mortgage, plus recording fees.
Prepaids and escrow
Your closing figures may include the first year of homeowners insurance, initial property tax and insurance reserves.
Homeowners insurance
Insurance is a major cost in Florida. Get quotes before or right after making an offer. A wind mitigation report can lower premiums, and older homes often need a 4-point inspection to be insured.
Flood insurance
Flood insurance may be required by the lender depending on the flood zone, and it can be worth considering even when it is not required.
Association costs
For condos and certain communities, review HOA or condo association dues, special assessments and association approval requirements.
Property taxes
Property taxes are based on the purchase price, not the seller's current bill.
Florida homestead exemption
Owners who make the home their permanent residence can apply for the homestead exemption with the county property appraiser. It reduces taxable value and caps annual increases in assessed value. Apply by March 1 of the year after purchase.
Your path from pre-approval to keys
Pre-approval
Review credit and budget, then get pre-approved.
Choose your path
Choose a loan program and check assistance eligibility.
Buyer agreement
Sign a written buyer agreement with your real estate agent before touring homes, as required in Florida.
Offer and contract
Tour homes and make an offer. The contract sets your deposit, inspection and financing deadlines.
Due diligence
Submit the escrow deposit, complete inspections and order insurance quotes
Loan review
Complete appraisal, title work and underwriting.
Closing preparation
Receive clear to close, review the Closing Disclosure at least three business days before closing, then complete your final walkthrough.
Keys and homestead
Close, get your keys, then file for homestead exemption.
Mistakes First-Time Home Buyers should avoid
- Opening new credit cards or financing furniture, cars or appliances.
- Changing jobs or becoming self-employed without talking to your loan officer.
- Making large cash deposits or transfers you cannot document.
- Missing contract deadlines for your deposit, inspection or loan approval.
- Waiting too long to shop homeowners and flood insurance.
- Skipping a condo's association documents, reserves and inspection reports.
Frequently asked questions
How much do I need for a down payment on my first home?
Eligible buyers may have options with 3%* down through conventional programs or 3.5%* down through FHA, subject to qualification and program rules. VA and USDA programs may offer no-down-payment options for eligible borrowers or properties. Your required funds also depend on closing costs, reserves and any assistance program you use.
What credit score do I need to buy a house in Florida?
Credit requirements depend on the loan program and the full application. Conventional financing typically starts at a 620 credit score, while FHA may allow a 580 or higher score for 3.5%* down when program requirements are met. A review of your credit, income and assets helps identify the available options.
Can I get down payment assistance in Florida?
Assistance may be available through Florida Housing Finance Corporation and local Florida programs. These programs often have income, purchase price, property and homebuyer education requirements, and funding can change. We can review currently open programs in the area where you plan to buy when you apply.
Can I use gift money from family?
Gift funds are allowed for many primary residence loan programs when the applicable rules are met. Lenders typically require a signed gift letter and documentation showing the transfer of funds. The acceptable donor and documentation requirements vary by program.
How much are closing costs in Florida?
Closing costs vary by loan type, purchase price, property, title services, insurance and prepaid items. They can include lender fees, title insurance, documentary stamp tax on the mortgage note, intangible tax on the mortgage, recording fees and initial escrow reserves. You will receive formal loan disclosures after application.
Do I have to take a homebuyer education class?
Many first-time Home Buyer assistance programs require an approved homebuyer education course, often completed online before closing. The exact provider and timing depend on the program. Completing education early can prevent a later closing delay.
Can I buy a condo as a first-time Home Buyer?
Yes, subject to the unit, building and loan program meeting eligibility requirements. In South Florida, association financials, reserves, insurance, special assessments and safety documentation can affect financing. Review the association materials early in your search.
How long does it take to close?
The timeline depends on the contract, appraisal, title work, insurance, lender conditions and responsiveness to document requests. A well-prepared file can move more smoothly, but each purchase is different. Your contract dates should guide the loan and inspection schedule.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an initial estimate based on information you provide. Pre-approval involves a more detailed review of credit, income, assets and documents, so it gives a stronger picture of your purchasing range. Neither is a commitment to lend until full underwriting is complete.
When should I apply for the homestead exemption?
If you make the property your permanent residence, apply with the county property appraiser by March 1 of the year after purchase. County rules and documentation requirements apply, so review the official county page after closing. Filing can reduce the taxable value and limit future assessed-value increases.
Ready to Buy Your First Home?
Start with a focused pre-approval conversation and receive clear guidance on loan options, documentation and the next steps for your Florida purchase.