Quick answer: You do not need 20 percent down. FHA loans take 3.5 percent with a 580 credit score, conventional loans take 3 percent for first-time buyers, and VA and USDA loans take nothing down if you qualify. Florida Housing adds up to $10,000 with The Florida Assist, $12,500 with the FL HLP second mortgage, or a 3, 4 or 5 percent forgivable second on its conventional loans, and the Hometown Heroes program gives eligible health care, school, first responder, child care and military buyers up to 5 percent of the loan, capped at $35,000, at 0 percent interest. The median single-family home sold for $402,500 in St. Lucie County, $376,018 in Brevard County and $650,000 in Palm Beach County in August 2026, and the average 30-year mortgage rate was 7.40 percent the week of October 15. Budget 2 to 5 percent of the price for closing costs, remember that Florida charges tax on the mortgage itself, that your property taxes reset to the price you paid the January after closing, and that you file for homestead by March 1. The whole thing, in order, is below. If you'd rather talk it through, message me now for a free one-on-one Zoom first-time homebuyer meeting.
Most of the first-time buyers I work with have been told two things that aren't true: that they need 20 percent down, and that they can't afford Florida. The first is a myth that costs people years. The second depends entirely on which county you're looking at and which loan you use, and the gap between a first home in Port St. Lucie or Palm Bay and one in Jupiter or Boca Raton is wider than most people realize. This guide is the conversation I have with every first-time buyer, written down: what the loans actually require, what the State of Florida will give you, what it really costs to close here, the Florida-only surprises that catch people in year two, and the steps in the order they happen. Every number is dated and sourced at the bottom. Programs and rates change, so treat the figures as a snapshot from mid-October 2026, not a quote.
Message me now for a free one-on-one Zoom first-time homebuyer meeting. Thirty minutes, your numbers, no pressure and no obligation. We'll figure out what you can comfortably afford, which programs you qualify for, and what the next 90 days should look like. Send me a message or text (772) 800-2274 and I'll send you a Zoom link.
First, what "first-time buyer" actually means
For nearly every program that matters, including Florida Housing's, you are a first-time buyer if you have not owned and lived in a primary residence in the past three years. That's the IRS definition and it's the one Florida Housing uses. So if you owned a home years ago, sold it, and have rented since 2023, you likely count. Florida Housing's programs also carry exceptions for qualifying veterans and for homes in federally designated targeted areas; a participating lender can tell you in a day whether one applies to you.
You're also in rarer company than you might think. The National Association of REALTORS® reported in November 2025 that first-time buyers made up 21 percent of all buyers in the year studied, the lowest share it has ever recorded, and that their median age had risen to 40. Their median down payment was 10 percent, 59 percent used personal savings and 22 percent used a gift or loan from family. I mention this not to discourage you but so you know the people who are getting it done are doing it with help: lower-down-payment loans, state assistance and family gifts, all of which are legitimate and all of which are covered below.
How much money you actually need
Three buckets: the down payment, the closing costs, and something left in the bank afterward. Here is the down payment side by loan type.
| Loan | Minimum down | Who it fits | The catch |
|---|---|---|---|
| FHA | 3.5% with a 580 or higher credit score; 10% with 500 to 579 | Buyers with thinner credit or higher debt ratios | 1.75% upfront mortgage insurance added to the loan, plus 0.55% a year on most loans, and the insurance stays for the life of the loan unless you put 10% down |
| Conventional, 97% LTV / HomeReady / Home Possible | 3% (at least one borrower a first-time buyer for the standard 97% program; HomeReady and Home Possible also have income limits) | Buyers with scores roughly 620 and up | Private mortgage insurance until you reach 80% of the original value (you can ask to cancel at 80%; it ends automatically at 78%) |
| VA | 0% | Eligible veterans, active duty, some Guard, Reserve and surviving spouses | A one-time funding fee (many veterans with service-connected disabilities are exempt), no monthly mortgage insurance |
| USDA | 0% | Moderate-income buyers in USDA-eligible areas, generally rural and some outlying suburban addresses | Income limits and an address check on USDA's eligibility map; upfront and annual guarantee fees |
Gift money from family is allowed on all of these with a gift letter and a paper trail, and it's how a lot of first homes get bought. In 2026 the FHA limit for a single-family home is $667,000 in Palm Beach County, $603,750 in St. Lucie and Martin counties and $541,287 in Brevard and Indian River; conventional loans go to $832,750 everywhere on this coast. Those limits are far above a typical first home here, so they rarely bind.
Closing costs are the number people forget. For a buyer they commonly run 2 to 5 percent of the price before any seller credit, and in Florida two of the items are taxes you won't see in most states: documentary stamp tax on the mortgage at 35 cents per $100 borrowed, and the nonrecurring intangible tax at 20 cents per $100 borrowed. On a $386,000 loan that's $1,351 and $772. The deed itself carries a documentary stamp tax of 70 cents per $100 of price, which by custom the seller pays in our counties, though everything in a Florida contract is negotiable. Add the lender's fees, the appraisal, the lender's title policy, the survey, prepaid interest, and the first year of homeowners insurance plus a few months of taxes and insurance into escrow. A good loan estimate will itemize all of it within three business days of your application, and I'll walk through it with you line by line.
Then keep something. Lenders may require reserves on some loans; I require them for your own sake. A first house always needs something in the first year.
What Florida will give you
Florida Housing Finance Corporation, the state's housing agency, runs the programs below. Three rules apply to all of them: the assistance only comes attached to a Florida Housing 30-year fixed first mortgage through a participating lender, you need a credit score of at least 640, and you have to complete an approved homebuyer education course. Income and purchase price have to fall under the limits for your county, which are published by Florida Housing and differ between, say, St. Lucie and Palm Beach.
The Florida Assist: up to $10,000 toward down payment and closing costs on FHA, VA, USDA or conventional loans, as a 0 percent, deferred second mortgage. No monthly payment. It is not forgiven; you repay it when you sell, refinance, pay off the first mortgage or move out.
The FL HLP second mortgage: $12,500 at 3 percent, amortized over 30 years, so it has a small monthly payment that counts against your debt ratio. The balance comes due on the same events.
The 3, 4 and 5 percent PLUS second mortgage: on Florida Housing's conventional HFA Preferred and HFA Advantage loans only, you receive 3, 4 or 5 percent of the loan amount as a second mortgage that is forgiven 20 percent a year over five years. Stay five years and it's gone. The trade is usually a somewhat higher first-mortgage rate, so run both ways with the lender.
Hometown Heroes: the big one, and the one with the most moving parts. For 2026 it is for first-time, income-qualified buyers who work full time for a Florida-based employer as health care workers, school staff, first responders, public safety or court employees or child care workers, and for servicemembers and veterans employed full time by a Florida-based employer. It provides up to 5 percent of the first mortgage, minimum $10,000 and maximum $35,000, as a 0 percent, 30-year deferred second mortgage with no monthly payment, repaid when you sell, refinance, transfer the deed or stop living there. It is not a grant and it is not forgiven. The 2026 round reopened on July 13, 2026 with $50 million; a lender-tracking site reported more than $25 million still available as of September 21, and the money runs out every year, so if you qualify, the lender conversation should happen this month, not next spring. There is no fee to apply for any Florida Housing assistance; anyone asking you for one up front is not a participating lender.
I'm a REALTOR®, not a lender, so I can't take your application, but I know which local lenders actually close these loans and I'll introduce you. That matters: not every loan officer has done a Hometown Heroes file, and the ones who have will tell you in a day whether you fit.
What a payment looks like right now
Freddie Mac's weekly survey put the average 30-year fixed rate at 7.40 percent on October 15, 2026, unchanged from the week before and up from 6.27 percent a year earlier; the 15-year averaged 6.71 percent. Your rate will differ with your score, down payment, loan type and points, and Florida Housing loans carry their own rates, so this is arithmetic, not a quote. Principal and interest at 7.40 percent, using August 2026 county median single-family prices:
| County, August 2026 median | FHA, 3.5% down | Conventional, 3% down | Conventional, 20% down |
|---|---|---|---|
| Brevard, $376,018 | $13,161 down; about $2,556 a month plus about $169 mortgage insurance | $11,281 down; about $2,525 a month plus PMI | $75,204 down; about $2,083 a month |
| St. Lucie, $402,500 | $14,088 down; about $2,736 a month plus about $181 mortgage insurance | $12,075 down; about $2,703 a month plus PMI | $80,500 down; about $2,229 a month |
| Palm Beach, $650,000 | $22,750 down; about $4,419 a month plus about $293 mortgage insurance | $19,500 down; about $4,365 a month plus PMI | $130,000 down; about $3,600 a month |
Those are principal, interest and FHA mortgage insurance only, with the FHA upfront premium financed into the loan. Property taxes, homeowners insurance, flood insurance where required, and any HOA or condo fee go on top, and in Florida those are not small. Which brings me to the part of this guide that matters most.
The Florida-only costs that surprise people in year two
Your property taxes reset. The seller's tax bill is based on the seller's assessed value, often capped for years by Save Our Homes. The January after you close, the county reassesses the house at what you paid. If the listing shows last year's taxes at $3,200 on a house that sells for $420,000, do not budget $3,200. Estimate your taxes from your price and the local millage; your lender's escrow estimate often uses the old bill, which is how first-year payment shock happens. I'll run the real number for any house you're serious about.
File for homestead by March 1. If you hold title and live in the house as your permanent residence on January 1, you can file with the county property appraiser (online, in minutes) by March 1 for the homestead exemption: $25,000 off assessed value for all taxes, plus an additional exemption on value above $50,000 that doesn't apply to school taxes and was $25,722 for 2025. More importantly, homestead starts the Save Our Homes cap, which limits your assessment increases to 3 percent a year or the change in the consumer price index, whichever is lower. Miss March 1 and you wait a year.
Insurance is a line item you shop early. Get a homeowners quote during your inspection period, not the week of closing. On older homes many carriers want a four-point inspection (roof, electrical, plumbing, HVAC), and every carrier must offer discounts for wind-mitigation features like hurricane straps and impact windows under Florida law, so order the wind-mitigation report with your inspection; it often pays for itself in the first year. The news is better than it was: the state's insurance regulator reported in January 2026 that Citizens, the state-backed insurer, cut 2026 rates an average of 8.7 percent and that 17 new carriers have entered Florida since the 2022 and 2023 reforms. Still, a quote is the only number that counts.
Flood is separate. Homeowners insurance does not cover flooding. If the house sits in a FEMA special flood hazard zone, your lender will require flood insurance. Elsewhere it's optional and often cheap, and I'd think hard about buying it anyway near the water. Most new flood policies have a 30-day waiting period, with an exception when the policy is bought in connection with a mortgage closing, which is one more reason to quote it early.
HOAs and condos have their own paperwork. Florida law gives a buyer the right to the association documents and budget, and you should read them. For a condo in a building three stories or taller, ask for the milestone structural inspection report and the structural integrity reserve study; since the 2022 and 2024 law changes, those buildings can no longer waive reserves for the roof, structure, plumbing, electrical, waterproofing and windows, and the result shows up either in the monthly fee or in a special assessment. Condos are often the most affordable first homes on this coast, and a well-run building is a fine place to start. Just know what you're buying into.
The steps, in order
1. Pull your own credit, free, before anyone else does. Fix errors, pay down cards below 30 percent of their limits if you can, and don't open or close anything. A 640 unlocks Florida Housing; the higher you are, the better your rate.
2. Set the budget from the payment, not the price. Decide what monthly number lets you sleep, including taxes, insurance and any HOA. Work backward to a price. Lenders will often approve you for more than that; the approval is a ceiling, not a target.
3. Get pre-approved, not pre-qualified, by a lender who does first-time programs. That means documents in, credit pulled, an actual underwriter's look. Shop at least two lenders; the loan estimates are standardized so you can compare them side by side. Ask each one about Florida Housing and, if you qualify, Hometown Heroes.
4. Sign a buyer agreement. Since August 17, 2024, under the National Association of REALTORS® settlement, an agent has to have a written agreement with you before touring homes together, and the agreement states what the agent will be paid and by whom. Compensation is negotiable, and in many sales the seller still agrees to cover some or all of it. I go through mine line by line with you before you sign anything, and the Zoom meeting is a good place to do that.
5. Search with the real list. Price range, commute, flood zone, HOA tolerance, condo or house, new construction or resale. I'll tell you what each neighborhood costs to insure and tax, not just what it lists for.
6. Write the offer on the Florida contract. Most resale offers here use the Florida Realtors/Florida Bar "AS IS" contract. You'll put down an earnest money deposit held in escrow, and you'll have an inspection period, 15 days if nobody fills in the blank, during which you can cancel for any reason and get the deposit back. Financing and appraisal contingencies protect you if the loan or the value fall through, as long as the deadlines are met.
7. Use the inspection period for everything. General inspection, wind mitigation, four-point if the house is older, WDO (termite) inspection, a sewer scope on older homes, and your insurance quotes. If something turns up, we negotiate a repair, a credit or a price change, or you walk.
8. The appraisal and underwriting. The lender orders an appraisal; if it comes in low, the contract tells us what happens next. Meanwhile, don't change jobs, finance a car, move large sums between accounts without a paper trail, or open new credit. Underwriters re-check everything before closing.
9. Clear to close, and the wire-fraud warning. You'll receive a closing disclosure at least three business days before closing. Read it against your loan estimate. Then the part I say to every client: title companies will never change wire instructions by email. Before you wire your down payment, call the title company at a number you looked up yourself, not one in an email, and confirm the account. Wire fraud in real estate is real and it is unrecoverable.
10. Close, then two more tasks. Closing in Florida is usually a title company or attorney, not a courthouse, and it takes about an hour. Afterward, file for homestead as soon as the property appraiser's site shows you as the owner, and set a calendar reminder for your insurance renewal, because that's when you shop it again.
Where first-time buyers are actually buying here
The honest map, using the August 2026 association medians: St. Lucie County's single-family median was $402,500, Brevard's was $376,018, Martin's was $656,900 and Palm Beach County's was $650,000, with Palm Beach's condo and townhouse median at $300,000. That's why so many first homes on this coast are in Port St. Lucie, Fort Pierce, Palm Bay and West Melbourne, in the newer communities west of I-95, or in condos and townhouses in the pricier counties. None of that is settling. Port St. Lucie grew 30.9 percent and Palm Bay 23.7 percent between April 2020 and July 2025 by the Census Bureau's estimates, so you would not be the first to figure this out, and a first condo in Palm Beach County puts you inside a market with a 3.5-month supply of houses, which is the kind of place you want to own something in. New construction deserves a look too: builders often pay closing costs or buy down the rate through their own lenders, and a new roof and new HVAC are worth real money on an insurance quote. The trade-offs, from HOA fees to commute times, are in the relocation guides town by town.
And the rule that doesn't change: equal housing. I show every buyer every home that fits their criteria and budget, and I'll tell you honestly what I know about a neighborhood's costs and commute. Where you should live is your call.
The mistakes I see most
Buying at the top of the approval instead of the top of the budget. Skipping the inspection to win a bidding war. Getting the insurance quote the week of closing. Trusting the seller's tax bill. Moving money around during underwriting. Signing a buyer agreement, or a contract, without reading it. Not applying for Hometown Heroes because somebody said it was out of money. And waiting, year after year, for 20 percent down while the price moves faster than the savings account. Every one of these is avoidable, and avoiding them is most of what I do.
If you've read this far, you're more prepared than most. The next step is thirty minutes on Zoom with your actual numbers.
Questions first-time buyers ask me
How much do I need to put down on a first home in Florida?
As little as 3 percent on a conventional loan or 3.5 percent on an FHA loan with a 580 credit score, and 0 percent with VA or USDA if you qualify. On St. Lucie County's August 2026 median of $402,500, 3.5 percent is $14,088. Florida Housing can cover some or all of that with The Florida Assist (up to $10,000), the FL HLP second mortgage ($12,500) or Hometown Heroes (up to $35,000 for eligible occupations), all through participating lenders with a 640 minimum score.
Is the Florida Hometown Heroes program still available in 2026?
The 2026 round reopened July 13, 2026 with $50 million, and a lender-tracking site reported more than $25 million remaining as of September 21, 2026. Funds run out each year, so check with a participating lender now. For 2026 it covers first-time, income-qualified buyers who work full time for a Florida-based employer in health care, schools, first response, public safety or the courts, or child care, plus servicemembers and veterans employed full time by a Florida employer. It provides up to 5 percent of the loan, $10,000 to $35,000, as a 0 percent deferred second mortgage that is repaid when you sell or refinance.
What are closing costs for a buyer in Florida?
Commonly 2 to 5 percent of the price before any seller credit. Florida adds two taxes on the loan itself: documentary stamp tax at 35 cents per $100 borrowed and intangible tax at 20 cents per $100 borrowed, about $2,100 combined on a $386,000 mortgage. The deed's 70-cents-per-$100 documentary stamp tax is customarily paid by the seller in our counties, though it is negotiable. Your lender's loan estimate itemizes everything within three business days of applying.
What credit score do I need to buy a house in Florida?
FHA allows 3.5 percent down at 580 and 10 percent down from 500 to 579. Conventional loans generally start around 620. Florida Housing's assistance programs, including Hometown Heroes, require 640. A higher score lowers your rate and your mortgage insurance, so pull your own report first and fix anything wrong before a lender pulls it.
What is the current mortgage rate for first-time buyers?
Freddie Mac's survey averaged 7.40 percent for a 30-year fixed and 6.71 percent for a 15-year the week of October 15, 2026. Your rate depends on your credit, down payment, loan type and points, and Florida Housing loans have their own rate sheets, so get quotes from at least two lenders and compare the standardized loan estimates.
Why did my property taxes go up so much after I bought?
Because Florida reassesses a home at market value the January after a sale. The seller's bill reflected the seller's capped assessment, not your price. Estimate taxes from what you'll pay, then file for the homestead exemption by March 1 of the year after you close so your own assessment is capped at 3 percent a year or the change in CPI, whichever is lower, from then on.
Do I have to sign a buyer agreement before looking at homes?
Yes. Since August 17, 2024, under the National Association of REALTORS® settlement, agents must have a written agreement with a buyer before touring homes together, and it has to state how the agent will be paid. The terms are negotiable, and sellers often still agree to pay some or all of the buyer's agent compensation. I review mine with you line by line, on Zoom if you like, before you sign.
Talk with William. Message me now for a free one-on-one Zoom first-time homebuyer meeting. Bring your questions, your credit score and a rough budget, and we'll leave the call with a plan, a lender introduction and a price range that makes sense. No obligation. Call or text (772) 800-2274 or send a message.
General information, not legal, tax, lending or financial advice. I am a licensed real estate agent, not a mortgage lender; loan programs, rates, limits and assistance funding change and are confirmed by a licensed mortgage loan originator. Figures are as of October 2026 and sourced below. William Merchant, REALTOR®, RE/MAX Gold. Each RE/MAX office is independently owned and operated. Equal Housing Opportunity.
Sources
- Florida Housing Finance Corporation: Homebuyer program overview (FL Assist, FL HLP, PLUS second mortgages, 640 score, education, first-time definition)
- Florida Housing Finance Corporation: Hometown Heroes Housing Program (2026 eligibility and terms)
- Make Florida Your Home: Hometown Heroes 2026 funding status (reopened July 13, 2026; remaining funds as of Sept. 21, 2026)
- Freddie Mac Primary Mortgage Market Survey, October 15, 2026
- HUD: FHA announces 2026 loan limits (floor $541,287, ceiling $1,249,125)
- FHFA: Conforming loan limit values for 2026 ($832,750 baseline)
- 2026 FHA loan limits by county: Palm Beach ($667,000) and St. Lucie ($603,750)
- HUD: FHA annual mortgage insurance premium reduced to 0.55 percent (Feb. 2023)
- CFPB: When can I remove private mortgage insurance (80% / 78% rules)
- Fannie Mae: HomeReady mortgage (3% down, income limits)
- USDA: Single Family Housing Guaranteed Loan Program and eligibility map
- National Association of REALTORS®: First-time buyer share falls to 21%, median age 40 (Nov. 4, 2025)
- National Association of REALTORS®: Settlement facts, written buyer agreements effective Aug. 17, 2024
- Florida Department of Revenue: Documentary stamp tax
- Barnes Walker: Florida transfer tax rates at a glance (deed, mortgage and intangible tax rates)
- Freddie Mac My Home: Closing costs
- Palm Beach County Property Appraiser: Homestead exemption (amounts, March 1 deadline, Save Our Homes)
- Palm Beach County Property Appraiser: Assessment caps and reassessment after a sale
- U.S. Census Bureau QuickFacts: Port St. Lucie and Palm Bay population estimates, July 1, 2025
- RWorld market snapshots, August 2026 (Palm Beach, St. Lucie and Martin county medians)
- Space Coast MLS: August 2026 Brevard County housing statistics
- Florida Office of Insurance Regulation: 2026 rate relief, Citizens down 8.7 percent, 17 new carriers (Jan. 13, 2026)
- FEMA / FloodSmart: Flood insurance waiting period and exceptions
- Florida Statutes 627.0629: Residential property insurance, wind-mitigation discounts
- Florida Statutes 553.899 and 718.112: Milestone inspections and structural integrity reserve studies
