How Much Do You Really Need for a Down Payment in Florida?

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How Much Do You Really Need for a Down Payment in Florida?

If you think you need 20% saved up before you can buy a home, I'm about to make your day a whole lot better.

The 20% rule is old news. Here's what's actually required depending on the loan type:

  • Conventional loan: As low as 3%
  • FHA loan: As low as 3.5% (with a 580+ credit score)
  • VA loan: 0% down — yes, zero — for qualifying veterans and active military
  • USDA loan: 0% down for eligible rural and suburban areas

On a $350,000 home — which is pretty realistic for Cape Coral or Fort Myers right now — a 3.5% FHA down payment is about $12,250. That's very doable for a lot of buyers, especially when you factor in that sellers here in SW Florida have been more willing to contribute toward closing costs than they were a few years ago.

What's the catch with putting less than 20% down?

If you put down less than 20% on a conventional loan, you'll pay something called PMI — Private Mortgage Insurance. It's a small monthly fee that protects the lender (not you), and it goes away once you've built up 20% equity in the home. On an FHA loan, you pay mortgage insurance for the life of the loan unless you refinance — something worth knowing upfront.

VA loans are a game-changer in SW Florida

We have a huge military and veteran community here — between MacDill Air Force Base up in Tampa and the many veterans who retire to this area, VA loans are one of the most powerful tools I work with every day. Zero down, no PMI, competitive rates. If you've served, please make sure you're using this benefit. I wrote a whole post about it here: The Ultimate Guide to VA Loan Benefits.

Don't forget about down payment assistance programs, either.

Florida has programs specifically designed to help buyers cover the down payment — and many people who use them had no idea they even existed. It's worth a conversation.

👉 Wondering how much you'd need for a specific home price? I have a mortgage calculator right here — plug in the numbers and see what a payment might look like. Or just reach out to me directly and I'll walk you through it.

— Mike Steele | SW Florida Mortgage Broker | NMLS #241787 | (239) 571-6943

Florida Lee County, FL, USA

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