Florida Down Payment Guide: How Much Do You Actually Need?
Minimum requirements, PMI costs, and how to decide whether putting more down makes financial sense for your situation.
Florida Minimum Down Payments at a Glance
| Loan Type | Min. Down Payment | Min. Credit Score | PMI Required? |
|---|---|---|---|
| Conventional (Fannie/Freddie) | 3% | 620 | Yes, until 80% LTV |
| FHA | 3.5% | 580 (or 10% if 500–579) | Yes — life of loan (30yr) |
| VA | 0% | No official min (most lenders: 620) | No |
| USDA | 0% | 640 recommended | No (annual guarantee fee) |
| Conventional Jumbo (FL $766k+) | 10%–20% | 700+ | Yes (usually) |
The 5 Down Payment Options, Compared
0% Down — VA or USDA
VA loans are the best mortgage product available — no down payment, no PMI, competitive rates. USDA loans cover large parts of rural and suburban Florida (check eligibility maps at usda.gov). If you qualify for either, use them. The funding fee (VA) or guarantee fee (USDA) is typically folded into the loan.
3% Down — Conventional (First-Time Buyers)
First-time buyers can put as little as 3% down on a conventional loan through Fannie Mae's HomeReady or Freddie Mac's Home Possible programs. PMI is required until you reach 80% LTV, but it automatically cancels — unlike FHA's MIP, which lasts the life of a 30-year loan.
On a $300,000 purchase: $9,000 down. PMI adds approximately $130–$180/month.
3.5% Down — FHA
FHA loans are widely used in Florida because of flexible credit requirements (down to 580) and competitive rates. The trade-off: FHA Mortgage Insurance Premium (MIP) includes an upfront fee of 1.75% (rolled into loan) plus 0.55% annually. On a 30-year loan, MIP never goes away — you'd need to refinance into a conventional loan once you have 20% equity.
On a $300,000 purchase: $10,500 down. MIP adds approximately $138/month ongoing.
5%–10% Down — Conventional
For buyers who don't qualify for 0% programs but can save beyond the minimum, 5%–10% down on a conventional loan offers the best balance. Lower PMI rates than at 3%, faster path to PMI cancellation, and no life-of-loan insurance requirement. Many Florida buyers land here.
On a $300,000 purchase at 5%: $15,000 down. PMI approximately $100–$150/month, cancels in ~5 years at normal appreciation.
20%+ Down — Conventional, No PMI
20% down eliminates PMI and gets the best rate tier. In a competitive FL market, all-cash or large-down-payment offers also win more often. The trade-off: tying up $60,000–$80,000 in a down payment on a $300,000–$400,000 home reduces your emergency fund and investment liquidity. Analyze the PMI savings vs. what that capital could earn invested.
On a $300,000 purchase: $60,000 down. Monthly savings vs. 5% down: ~$120–$150 in PMI, but you deployed $45,000 more of capital.
PMI Cost by Down Payment (FL, $350,000 Purchase Price)
| Down Payment | Loan Amount | Approx. PMI/month | Months to PMI Cancel |
|---|---|---|---|
| 3% ($10,500) | $339,500 | $165–$210 | ~9–11 years |
| 5% ($17,500) | $332,500 | $140–$175 | ~7–9 years |
| 10% ($35,000) | $315,000 | $90–$120 | ~5–6 years |
| 15% ($52,500) | $297,500 | $50–$75 | ~2–3 years |
| 20% ($70,000) | $280,000 | $0 | N/A |
FHA exception: FHA MIP never cancels on 30-year loans originated after June 2013 (unless LTV was 90%+ at origination, where it cancels at 11 years). If you put 3.5% down with FHA, budget for MIP for the entire loan unless you refinance. With 10%+ down on an FHA loan, MIP cancels at 11 years.
Florida Down Payment Assistance Programs
Florida Housing Finance Corporation (FHFC) offers several DPA programs that can cover 3%–5% of the purchase price — effectively turning a 3% loan into a 0% down purchase:
- FL Assist ($10,000 deferred loan): 0% interest, deferred until sale, refinance, or payoff. Can be stacked with FL Bond Program first mortgage.
- FL HLP ($10,000, 3% rate): 15-year repayment. Best for buyers who plan to stay long-term.
- FL Homebuyer Loan Program (3F or other Bond loans): Below-market first mortgage rates paired with DPA.
- Hometown Heroes (up to $35,000): Teachers, nurses, firefighters, law enforcement, military, and other qualifying professions. Largest single FL DPA program.
- Local programs: Many FL counties and cities layer additional assistance on top of state programs. Miami-Dade, Broward, Hillsborough, Orange, and Palm Beach counties all have their own DPA.
Key rule: Most FL DPA programs require using an FHFC-approved lender. Not all lenders participate. Ask your loan officer specifically if they are an FHFC-approved originator before you start the process.
Gift Funds: Can Someone Give You the Down Payment?
Yes — with documentation. All major loan programs allow down payment funds to come from a gift (typically a family member). Requirements:
- Gift letter signed by donor stating the funds are a gift, not a loan
- Bank statement showing the gift was received
- Lender may require 60-day bank history to verify funds were not a loan
- VA and FHA loans have no minimum borrower contribution when using gift funds; conventional loans may require at least 3%–5% from borrower's own funds for investment properties
Frequently Asked Questions
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