Down Payment to Buy a House in Florida

How Much Down Payment Do You Need to Buy in Florida?

The 20% down payment is a myth. Many Florida buyers purchase with far less — as little as $12,000 on a $400,000 home. Here is a complete breakdown of down payments by loan type, PMI costs, and Florida assistance programs that can reduce your out-of-pocket cost.

Christian Tibok Oct 9, 2026 9 min read

Florida home with down payment concept, cash and keys on a table

One of the biggest misconceptions about buying a home in Florida is that you need 20% down. While a larger down payment has benefits, many loan programs allow you to buy with much less. On a $400,000 Florida home, you could buy with as little as $12,000 down — and with Florida's assistance programs, your out-of-pocket cost could be even lower. Let's break down your options.

Down Payment by Loan Type

The down payment you need depends on the loan program you choose. Here is a breakdown of each option, with the dollar amount on a typical $400,000 Florida home:

Loan Type	Down Payment %	On $400K Home	Who Qualifies
Conventional	3%–5%	$12,000–$20,000	Credit 620+, first-time or repeat
FHA	3.5%	$14,000	Credit 580+, flexible guidelines
VA	0%	$0	Eligible veterans & active military
USDA	0%	$0	Eligible rural areas, income limits

Each loan type has different credit, income, and property requirements. A qualified lender can help you determine which option fits your situation. This information is educational and does not constitute lending advice.

Private Mortgage Insurance (PMI)

If you put less than 20% down on a conventional loan, you will pay private mortgage insurance (PMI). PMI protects the lender, not you, and is added to your monthly payment. The cost varies based on your loan amount, credit score, and down payment:

Down Payment	Credit Score	Est. Monthly PMI on $400K
3%	680	$150–$200
5%	700	$100–$150
10%	740	$50–$80
20%	Any	$0 (no PMI)

PMI is not permanent. Once you reach 20% equity in your home, you can request to have it removed. For many Florida buyers, the cost of PMI is worth getting into a home sooner rather than waiting years to save 20%.

Down Payment Assistance in Florida

Florida offers down payment assistance programs that can reduce or eliminate your out-of-pocket cost:

Program	Max Assistance	Structure
Hometown Heroes	Up to $35,000	0% interest, deferred & forgivable second mortgage
Florida Assist	Up to $10,000	0% interest, deferred second mortgage
HAMI	Up to $25,000	Forgivable over 15 years for very low income

Eligibility depends on income, location, and program availability. These programs can make buying possible with little to no money out of pocket.

What Else Do You Need to Save For?

Beyond the down payment, plan for these additional costs on a $400,000 Florida home:

Cost	Typical Range	On $400K Home
Closing costs	2%–5% of price	$8,000–$20,000
Home inspection	$400–$700	$500
Earnest money	1%–5% of price	$4,000–$20,000
Homeowners insurance (annual)	$3,000–$6,000+	$4,500
Moving expenses	$1,000–$5,000	$2,500

Florida vs. New Jersey Down Payments

The down payment percentages are the same since they are set by the loan programs, not the state. The difference is the home price:

Factor	Florida	New Jersey
Median home price	~$395,000	~$510,000
3.5% FHA down	~$13,825	~$17,850
3% conventional	~$11,850	~$15,300
State assistance program	Hometown Heroes	NJHMFA

What Credit Score Is Needed to Buy a House in Florida?
Closing Costs for Buyers in Florida: What to Expect
How to Get Pre-Approved for a Mortgage in Florida
Florida First-Time Home Buyer Programs and Grants
FHA, VA & USDA Home Loans in NJ and FL: A Buyer's Guide

Christian Tibok

Licensed real estate professional with Fathom Realty NJ LLC & Fathom Realty FL LLC. Christian helps buyers across New Jersey and Florida find the right home with honest advice, local expertise, and a no-pressure approach. Learn more about Christian.

Common Questions About Down Payments in Florida

How much down payment do I need to buy a house in Florida?

It depends on your loan type. Conventional loans may require as little as 3% down. FHA loans require 3.5% down. VA and USDA loans may require no down payment. With down payment assistance programs like Hometown Heroes, your out-of-pocket cost could be even lower. On a $400,000 Florida home, 3% down is $12,000 and 3.5% FHA down is $14,000.

Is 20% down always required in Florida?

No. The 20% down requirement is a common misconception. While putting 20% down eliminates private mortgage insurance (PMI) on conventional loans, many Florida buyers purchase with much less. On a $400,000 home, 20% down would be $80,000 — but most buyers put down 3% to 5% ($12,000 to $20,000) and pay PMI, which typically costs $100 to $200 per month.

Can I use gift funds for my Florida down payment?

Most loan programs allow gift funds from family members for the down payment, subject to documentation requirements. The donor must provide a gift letter stating no repayment is expected. Your lender can explain what documentation is needed to verify gift funds for your specific loan type.

What is the Florida Hometown Heroes program?

Hometown Heroes is a Florida Housing Finance Corporation program for frontline and essential workers, including healthcare, education, law enforcement, and military personnel. It offers down payment and closing cost assistance up to $35,000 as a 0% interest, deferred second mortgage that is forgivable if you live in the home for a set period. Income and purchase price limits apply.

How does the down payment in Florida compare to New Jersey?

The down payment percentages are the same since they are set by the loan programs, not the state. The difference is the home price: Florida's median is approximately $395,000 while New Jersey's is approximately $510,000. So 3.5% down on a median Florida home is about $13,825, versus about $17,850 on a median New Jersey home. Florida also offers Hometown Heroes; New Jersey offers NJHMFA assistance programs.