With all these benefits, it makes sense that Florida\u2019s population is booming. U.S. Census reports<\/a> show population growth of more than 14% from 2010 to 2020, pushing it up to the third most populous state in the country.<\/p>\n Ready to make Florida your home? We researched everything you need to know about buying a house in Florida, and spoke with top agent Maria Raymer<\/a>, who works with 67% more single family homes than the average agent in Jacksonville, Florida<\/a>, to get expert insight into the steps required for buying a home in Florida.<\/p>\n\n\n\n\n\n Working with a knowledgable buyer’s agent is your key to success when buying a home in Florida. Use HomeLight’s agent matching tool to find a top agent in your area in under two minutes.<\/p>\n \n Let\u2019s dive into the steps of buying a house<\/a> in Florida:<\/p>\n Before you start looking for homes in Florida, you want to determine if you\u2019re ready to purchase one. Consider factors such as how long you plan to be in the area, if you have steady employment, and if you have enough money saved for not just the down payment, but for closing costs<\/a>, maintenance, property taxes, and more. Homebuyers in Florida pay an average of approximately 2.58%<\/a> of the home\u2019s purchase price in closing costs when purchasing a home.<\/p>\n During this time, review your credit score<\/a> and determine if it\u2019s considered excellent, good, fair, or poor. Typically, the higher your credit score, the lower your interest rate will be, which saves you money over the life of the loan. You may want to pay off any collections accounts, dispute errors on your credit report, and pay down your credit card balances before you start shopping for a home.<\/p>\n The median home price in Florida is $415,762<\/a> as of July, 2022. So, expect to spend somewhere around that number depending on what part of Florida you\u2019re purchasing in, the home\u2019s age and condition, and the size of the property, among other factors.<\/p>\n Different loan programs will require different down payment amounts, but you do not always need to put 20% down when buying a home. A survey completed by the National Association of Realtors found that first-time homebuyers put just 7% down<\/a> on average in 2021.<\/p>\n Raymer says that for her clients, especially first-time buyers, she suggests an FHA loan, which only requires 3.5% down. \u201cFHA is really one of the best options,\u201d she advises. She adds that Florida also has numerous down payment assistance programs, many of which are tied to state bond money. \u201cThe programs can come and go, but buyers can google current programs and see what they qualify for,\u201d she says.<\/p>\n Consider the following down payment assistance programs in Florida:<\/p>\n Getting preapproved for a mortgage will help you determine how much you can afford, which will then inform your home search. It\u2019s always smart to shop around for the best rates and terms<\/a>, so be sure to research a few different lenders during this process.<\/p>\n You can also ask family, friends, your buyer\u2019s agent, and attorneys for mortgage lender recommendations. When choosing a mortgage lender, ask for a detailed cost breakdown, review the terms you are being offered, and compare loan types<\/a>.<\/p>\n According to the US Consumer Financial Protection Bureau (CFPB), there are three general categories of mortgage<\/a>:<\/p>\n There are two types of conventional loans<\/a> \u2014 conforming and non-conforming. A conforming conventional loan will meet or exceed the guidelines set by Fannie Mae and Freddie Mac which are government-sponsored enterprises (GSEs) that purchase conventional loans. Guidelines for a non-conforming loan will vary more widely depending on the lender.<\/p>\n Typical requirements for a conventional loan<\/a> may include:<\/p>\n Non-conforming loans are for borrowers who do not fit into the guidelines set by Fannie and Freddie and are not eligible to be purchased by them \u2014 jumbo loans<\/a> are an example of this because they offer loan amounts above the limits set by Fannie and Freddie.<\/p>\n An FHA loan is insured by the Federal Housing Administration and available from FHA-approved lenders. An FHA loan is unique in that borrowers are able to use a down payment assistance program for the entire down payment. Requirements to qualify<\/a> for an FHA loan may include:<\/p>\n Similar to conventional conforming loans in this way, FHA loans have loan limits<\/a> that vary from county to county. For example, in Alachua County, FL, the maximum loan amount is $420,680 for a single-family home, while in Monroe County, FL the loan limit is $710,700.<\/p>\n VA loans<\/b>: For veterans, service members, and surviving spouses. Loans backed by the VA<\/a> offer 0% down payments for those who qualify. Different lenders will have different requirements, however, VA-backed loans do not have a universal maximum DTI requirement.<\/p>\n USDA loans<\/b>: These loans are backed by the United States Department of Agriculture and are for lower income borrowers in \u201crural areas.\u201d To determine if the area you are purchasing in is eligible for a USDA home loan, use this eligibility map<\/a>. These loans also offer 0% down for qualified borrowers.<\/p>\n Now that you know more about preparing to purchase a house and down payments, it\u2019s time to decide where you want to live. Do you want to live near family and friends, start over in a new city, live on the coast, or in a more rural area? Consider work commute times, average house prices, and things to do in each area that you\u2019re thinking about living in.<\/p>\n Some great places to consider when buying a house in Florida include:<\/p>\n St. Johns County: <\/b>Ranked #1 for best counties<\/a> to live in Florida, the coastal county of St. Johns includes the communities of St. Augustine, Ponte Vedra Beach, and Nocatee. Known for having some of the best schools<\/a> in the state, St. John\u2019s is a popular region for families \u2014 and if you love being near the ocean, there are more than 40 miles of beaches to explore. St. John\u2019s popularity does mean home prices might be a bit higher, with a median home price<\/a> of $420,000 as of July, 2022.<\/p>\n Hillsborough County: <\/b>Hillsborough is Florida\u2019s fourth most populous county, and includes the city of Tampa, as well as smaller communities like Riverview and Sun City Center, a very popular 55+ only suburb. The current median price for sold homes<\/a> here is $300,000, an increase from 2021, but still lower than other areas. Hillsborough has a rich history, with numerous historic homes and sites, all of which the county works to maintain and preserve. Living here also means access to more than 170 parks, excellent schools, and of course, beaches!<\/p>\n Alachua County: <\/b>Located in the north-central part of Florida, Alachua County is home to the University of Florida, which is part of the city of Gainesville. Much of the county\u2019s economy centers around the school, and it is the county\u2019s largest employer. This county is a smaller, family-friendly region, without the tourist component of some of the beach areas, and homes here<\/a> sold for a median of $309,900 in July, 2022. The county boasts several amazing fresh water springs, as well as close proximity to a variety of lakes and rivers, making it a great place for hiking, fishing, and camping.<\/p>\n Orange County: <\/b>Amusement park fans will rejoice at the idea of living in Orange County, home to the bulk of Disneyworld\u2019s resorts, as well as Universal Studios and Universal\u2019s Volcano Bay. Cities here include the county seat of Orlando, and smaller communities such as Apopka, Winter Garden, and Maitland. As of July, 2022, homes in Orange County sold for a median of just over $380,900<\/a>, and the county was recently ranked<\/a> as the \u201cBest County for Young Professionals.\u201d<\/p>\n Real estate agents almost always appreciate it when their clients come to them to start home shopping after getting preapproved for a mortgage. This typically means that a buyer is ready to go and can start making offers. Choose a knowledgeable agent<\/a> that specializes in representing buyers in the area you want to purchase in.<\/p>\n Your buyer\u2019s agent<\/a> will be able to help you create a wishlist<\/a>, set up viewing appointments for you, tell you more about what\u2019s going on in the neighborhood, negotiate on your behalf, and connect you with other vendors such as a title company, insurance agent, and home inspector. Real estate agents are also incredibly knowledgeable on the homebuying process as a whole and can hold your hand throughout the process to keep closing on track.<\/p>\n Once you start your hunt for the perfect Florida home, you\u2019ll find a wide range of home types, styles, and locations. Whether you\u2019ve dreamed of living right on the beach, or want a high-rise condo in the middle of a big city, Florida offers a bit of everything!<\/p>\n As far as home styles go, new construction is trending toward a country style, says Raymer. \u201cThere are a lot of front porches, and they tend to have a cottage feel,\u201d she says. Buyers will also find a lot of coastal home designs, as well as a good number of condos and townhomes.<\/p>\n While families relocating often means a more competitive market during the summer months, Raymer notes that at least during this year (2022), it hasn\u2019t been as busy as the previous couple years. \u201cWe didn\u2019t have the summer selling season that we usually have, but we did have a very strong first quarter,\u201d she says. Regardless, she recommends that buyers who really want a deal should consider doing their house hunting during the winter months, especially the holidays. \u201cPeople who sell during the holidays are serious about it and motivated,\u201d she says, \u201cwhich means buyers might be able to negotiate a bit more.\u201d<\/p>\n Working with your buyer\u2019s agent to craft a winning offer<\/a> can sound overwhelming. In competitive markets, cash offers could be more likely to be accepted by sellers with multiple interested buyers. While it is not always recommended to completely waive contingencies to impress a seller, you might consider pairing down to just the inspection contingency and financing contingency to remain competitive. Get creative with your offer<\/a> \u2014 you may want to offer a larger earnest money deposit, schedule a quick closing, or even consider letting the seller rent the house back from you for a certain period of time.<\/p>\n The slight softening of the housing market around the country has also impacted Florida, but Raymer cautions buyers against making low-ball offers. \u201cWith the shifts in the market, there\u2019s more room for negotiation, but you still need to make a reasonable offer,\u201d she says. \u201cI would say don\u2019t come in at less than 3% lower than the asking price.\u201d<\/p>\n Components of an offer<\/a> when buying a house in Florida include:<\/p>\n Your earnest money deposit<\/a>, also known as a \u201cgood faith deposit,\u201d is an amount of money you agree to pay the seller to indicate that you are serious about purchasing the home. This is usually between 1% and 3% of the purchase price. However, a higher deposit can be more attractive to sellers and make your offer stand out in competitive markets.<\/p>\n Whether or not you get your earnest deposit money back if you decide to back out of the sale depends on the contract. If you decide to back out of the purchase for any reason not specified in the contract, you could forfeit your earnest money. Be sure to review the contract with your real estate agent and attorney before making any decisions.<\/p>\n Ordering a title search can be done any time after your offer is accepted, but it\u2019s a good idea to do it as soon as possible because it may take a couple weeks for the title search to come back, especially if the title company is backed up. Who customarily chooses the title company can vary by state and even county \u2014 but if it is the buyer’s choice, your real estate agent or mortgage lender will likely have a recommendation.<\/p>\n The title company will issue a preliminary title report<\/a> that will be reviewed by all parties including your lender and will include items such as property tax information, easements, CC&Rs, deed restrictions, liens, and any judgments against the title of the home. Any liens, encumbrances, or judgments against the property will need to be removed before the buyer can close on the property.<\/p>\n In addition to liens or judgements, there are a few other title issues that might crop up. These include:<\/p>\n Most of these are easily resolved, but you may need the help of an attorney if there are any major disputes.<\/p>\n Homeowners insurance is always recommended and it is almost always required if you\u2019re financing your home with a mortgage. The average yearly cost of homeowners insurance in Florida is $1,960<\/a>.<\/p>\n Depending on the home\u2019s location, buyers may also be required to purchase flood insurance, which, in Florida, averages $629 per year<\/a>.<\/p>\n If you\u2019re applying for a mortgage, your lender will most likely order the appraisal<\/a> and you will pay for it. You will be responsible for ordering your own inspections with the help of your buyer\u2019s agent, again, at your own cost. Your agent can recommend a licensed home inspection company if you don\u2019t have one. The home inspector<\/a> will schedule a date and time to inspect the house and depending on its size, it may take a couple of hours to complete.<\/p>\n Some common issues in homes in Florida include:<\/p>\n A good inspector will check for all of these things, and present you with a comprehensive report of their findings. Raymer says buyers should also consider separate inspections for termites, HVAC systems, and swimming pools.<\/p>\n Remember that everything is negotiable. If you have an inspection contingency in your contract, and the inspection report comes back with tens of thousands of dollars of necessary repairs, it\u2019s time to negotiate.<\/p>\n \u201cThere is definitely more room for negotiation these days than in previous years,\u201d says Raymer, who also notes that buyers should still stick to those repair items that affect health and safety.<\/p>\n Talk to your buyer\u2019s agent and come up with a plan for what to ask for during negotiations. Do you want a credit for the leaky roof or would you rather a licensed contractor repair it prior to settlement? If the house needs two new toilets, are you willing to walk away if the seller refuses to budge<\/a> during negotiations? Keep the bottom line in mind, but don\u2019t nitpick. Home inspectors are meant to be thorough. Focus on major repairs that need to be done ASAP and are going to be costly.<\/p>\n This is to verify that agreed-upon repairs have been completed and the condition of the home is satisfactory. The final walkthrough<\/a> is usually done a day or two before the closing date. With the help of your agent, check that all plumbing, electrical, and HVAC units are on and working. If personal items such as the dining room chandelier and the washer and dryer were included in the contract, make sure they\u2019re still in the house.<\/p>\n Buyers should never attend the final walkthrough<\/a> without their agent, and they should bring along the repair addendum to the purchase agreement for the house. Your agent will be able to keep you on task as to verifying repairs are complete, and having the repair list in hand will ensure you don\u2019t miss anything.<\/p>\n If you find that the necessary repairs were not made, or that there were damages left behind by the seller, notify your agent immediately so they can rectify the situation before closing.<\/p>\n You made it! After what might feel like a long wait, your closing date is set and you\u2019re ready to move into your new home. The closing process in Florida is fairly straightforward, with everything processed through the title company.<\/p>\n Keep in mind that there can also be occasional snafus that can affect your closing<\/a> date. As a buyer you\u2019ll want to make sure of the following:<\/p>\n![\"homelight](\"https:\/\/www.homelight.com\/blog\/wp-content\/themes\/ccprototypev5\/images\/logo-small-cta.png\"){kind=logo}
\n <\/div>\n \n Looking for An Affordable Home in the Sunshine State?<\/h3>\n
Steps to buying a home in Florida<\/h2>\n
1. Assess your readiness<\/h3>\n
2. Saving for your down payment<\/h3>\n
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3. Get preapproved for a mortgage<\/h3>\n
Conventional<\/h4>\n
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FHA loans<\/h4>\n
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Special programs<\/h4>\n
4. Research the market and determine where you would like to buy<\/h3>\n
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<\/a><\/p>\n5. Find a local Florida agent<\/h3>\n
6. Start shopping for homes in Florida<\/h3>\n
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With the shifts in the market, there\u2019s more room for negotiation, but you still need to make a reasonable offer. I would say don\u2019t come in at less than 3% lower than the asking price.<\/q>\n
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\n <\/li>\n \n <\/li>\n \n <\/li>\n \n <\/li>\n \n <\/li>\n <\/ul>\n <\/div>\n Currently accepting new clients<\/span>\n <\/div>\n <\/div>\n \n
7. Make a strong offer<\/h3>\n
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8. Send your earnest money deposit<\/h3>\n
9. Order a title search<\/h3>\n
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10. Shop for homeowners and specialty hazard insurances<\/h3>\n
11. Order inspections and appraisal<\/h3>\n
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<\/a><\/p>\n12. Negotiate repairs<\/h3>\n
13. Final walkthrough<\/h3>\n
14. Closing time!<\/h3>\n