{"id":27893,"date":"2021-11-10T09:50:47","date_gmt":"2021-11-10T17:50:47","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=27893"},"modified":"2026-03-30T11:42:21","modified_gmt":"2026-03-30T18:42:21","slug":"buyer-down-payment-assistance-in-florida","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-down-payment-assistance-in-florida\/","title":{"rendered":"Down Payment Assistance in Florida: Buying In the Sunshine State"},"content":{"rendered":"

Whether you\u2019re hoping to find a condo in Miami to be close to the nightlife, or are aiming for a single-family home close to your favorite golf course where you can retire in comfort, buying a house in Florida is a dream for many \u2014 it\u2019s intimidating, but also exciting. Due to its popularity and coastlines, the cost of housing in Florida can be exceptionally high, but that also depends on where you\u2019re searching.<\/p>\n

The nationwide demand for housing has also increased during the coronavirus pandemic, pushing up housing costs even more. Add to that the sizable down payment<\/a> and closing costs, and your head is probably already spinning. Buying a home in Florida might seem out of reach, but it doesn\u2019t have to be. There are many down payment assistance programs in Florida that can help open the door to a home of your own. Finding the right program is an important first step to becoming a homeowner. So, it\u2019s time to stop dreaming about homeownership and start living it.<\/p>\n

We did the research and spoke with Jeff Riber<\/a>, a Jacksonville<\/a>, Florida, agent who works with 72% more single-family homes than the average agent in his area. \u201cIt just seems to be a general desire for more space, which we have in Jacksonville,\u201d notes Riber.<\/p>\n

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Source: (Chris Norberg \/ Unsplash)<\/figcaption><\/figure>\n

Buying your Sunshine State home: Let\u2019s talk numbers<\/h2>\n

In comparing metropolitan areas with suburban or rural, the difference in home prices can reach a crescendo. In fact, the median sales price for single-family homes in the Miami area in August 2021 was over $500,500<\/a>, according to Florida Realtors\u00ae. For a condo or townhome<\/a> in the same area, you might expect to pay about $335,000.<\/p>\n

Prices aren\u2019t much different in the Fort Lauderdale area, where the median sales price of single-family homes are trending around $495,000 and condominiums and townhomes<\/a> are running around $220,000.<\/p>\n

First-time homebuyers will stretch their budgets a little further on houses for sale in Tampa<\/a>, according to Tampa Realtors\u00ae Association. You can expect to find median sales prices for a single-family home for around $340,000<\/a> or a condominium or townhouse for around $225,000.<\/p>\n

For many first-time homebuyers, suburbs and rural areas offer a reprieve from higher home prices. West Park, roughly a 30-minute drive from the Miami-Dade area, is one example. It offers many of the conveniences of the city along with reasonable proximity to Miami, and the median home price in West Park<\/a> is $261,257, according to Neighborhood Scout.<\/p>\n

So how much will you need to bring to the closing table to buy a house in Florida?<\/p>\n

Minimum down payments needed to buy a Florida home<\/h3>\n

The common wisdom is that you\u2019ll need to save 20% of your home\u2019s purchase price, but most buyers (especially first-time buyers) don\u2019t reach that benchmark. We crunched the numbers to show what some of the potential down payments might look like based on your loan.<\/p>\n\n\n\n\n\n\n\n
City<\/b><\/td>\nMedian Home Value<\/b><\/td>\n3% Down<\/b><\/td>\n3.5% Down<\/b><\/td>\n10% Down<\/b><\/td>\n20% Down<\/b><\/td>\n<\/tr>\n
Miami<\/td>\n$500,500<\/td>\n$15,015<\/td>\n$17,518<\/td>\n$50,050<\/td>\n$100,100<\/td>\n<\/tr>\n
Fort Lauderdale<\/td>\n$495,000<\/td>\n$14,850<\/td>\n$17,325<\/td>\n$49,500<\/td>\n$99,000<\/td>\n<\/tr>\n
Tampa<\/td>\n$340,000<\/td>\n$10,200<\/td>\n$11,900<\/td>\n$34,000<\/td>\n$68,000<\/td>\n<\/tr>\n
West Park<\/td>\n$261,257<\/td>\n$7,838<\/td>\n$9,144<\/td>\n$26,126<\/td>\n$52,251<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The larger the down payment you can afford, the better shape you\u2019ll be in with both sellers and lenders when applying for a conventional home loan.<\/p>\n

Some loan types allow for smaller, more affordable down payments. An FHA loan<\/a>, for example, requires a minimum of 3.5% down. A USDA home loan<\/a>, which is available for rural and some suburban areas, might not require a minimum down payment at all. The same holds true for VA loans for military families<\/a>. However, eligibility and income restrictions can apply.<\/p>\n

Earnest money: What\u2019s normal to pay in Florida<\/h3>\n

Earnest money is an upfront amount (usually a portion of your down payment) that you agree to pay the seller as an act of good faith to show you are \u201cin earnest\u201d about buying their house.<\/p>\n

There is no law that says you must provide earnest money, but the deposit could increase your chances of the seller accepting your offer. However, if you decide to back out of the deal for reasons not stipulated in the purchase agreement, you\u2019ll sacrifice your earnest money.<\/p>\n

There is no set amount of earnest money you need, but according to the U.S. News and World Report, 3% is common most of the time<\/a>. However, that amount has quite a range, depending on factors such as market trends, the area, the cost of the home and more. If you\u2019re looking to buy a home in one of Florida\u2019s luxury markets, such as the southern metropolis of Miami, for example, then you\u2019ll likely need a larger deposit. In some cases, this might equal 10% of the home value.<\/p>\n

You should include your earnest money deposit amount when you write your offer. Always speak with your real estate agent to gauge the amount of earnest money you might want to offer to make your bid as competitive as possible.<\/p>\n

Here\u2019s a sample breakdown of what an earnest deposit might look like.<\/p>\n\n\n\n\n\n\n\n
City<\/b><\/td>\nMedian Home Value<\/b><\/td>\n3%<\/b><\/td>\n5%<\/b><\/td>\n10%<\/b><\/td>\n<\/tr>\n
Miami<\/td>\n$500,500<\/td>\n$15,015<\/td>\n$25,025<\/td>\n$50,050<\/td>\n<\/tr>\n
Fort Lauderdale<\/td>\n$495,000<\/td>\n$14,850<\/td>\n$24,750<\/td>\n$49,500<\/td>\n<\/tr>\n
Tampa<\/td>\n$340,000<\/td>\n$10,200<\/td>\n$17,000<\/td>\n$34,000<\/td>\n<\/tr>\n
West Park<\/td>\n$261,257<\/td>\n$7,838<\/td>\n$13,063<\/td>\n$26,126<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Cash reserves<\/h3>\n

Having cash reserves may not necessarily be required, but it is strongly recommended. A cash reserve money is money in your bank account. It\u2019s generally equal to at least two months of potential mortgage payments. Cash reserves are handy if you later discover you need a costly repair or something comes up that challenges your ability to make a mortgage payment on time.<\/p>\n

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Source: (Luiz Cent \/ Unsplash)<\/figcaption><\/figure>\n

Down payment assistance in Florida<\/h2>\n

Although these numbers might make homeownership look daunting, you\u2019ll find a robust selection of down payment assistance programs in Florida, whether in the form of grants, matching programs, or loans.<\/p>\n

There\u2019s a big difference between down payment assistance loans and grants. You\u2019re often required to repay loans. Grants are essentially free money and do not require repayment. However, there is also a gray in-between area: forgivable loans.<\/p>\n

Forgivable loans are forgiven once you\u2019ve met all the eligibility requirements (such as living in the home as your primary residence for a minimum of 36 months), and typically only require repayment if you sell or refinance the house during a designated period of time.<\/p>\n

Florida offers some great down payment assistance programs you can tap into, primarily second mortgages you can use toward your down payment and closing costs.<\/p>\n

The Florida Housing Finance Corporation offers a simple online wizard<\/a> to help you find the right down payment assistance program for the area in which you\u2019re looking to buy. All you need is to follow the prompts by selecting the number of members in your household and the county in which you’re searching for housing. The online wizard also provides you with recommended loan officers who can help you apply for down payment assistance programs for that area.<\/p>\n

There are three assistance programs the wizard will help you locate; we\u2019ve highlighted the benefits of each below. However, to meet eligibility requirements, you\u2019ll need to use Florida Housing\u2019s First Time Homebuyer loan program, so bear that in mind.<\/p>\n

The Florida Assist<\/h4>\n

The Florida Assist<\/a> program is not a forgivable loan. However, repayment of the loan is deferred while you live in the home. If you later decide to sell, then you\u2019ll need to repay the loan in full. If you meet eligibility requirements, the program offers some interesting perks to buyers.<\/p>\n