You Probably Don't Need as Much Down Payment as You Think
Most Florida buyers overestimate how much they need to get into a home. With the right loan program, you may be able to purchase with as little as 0–3.5% down — and I'll help you find the option that fits your situation.
The 20% Down Myth
Most buyers think they need 20% down to purchase a home. The reality is very different — and it's keeping many qualified buyers on the sidelines longer than necessary.
Conventional Loan
FHA Loan
VA Loan (eligible veterans)
They Need — Not True
Lender-Paid Down Payment Assistance
As a mortgage broker I work with select wholesale lenders that offer built-in down payment assistance programs — covering some or all of your FHA down payment so you can get into a home with little to no money out of pocket.
Down Payment Covered — No Repayment Required
Some lender programs provide the 3.5% FHA down payment as a grant — meaning it never needs to be repaid. You get into the home with essentially $0 down on the down payment itself. Closing costs may still apply.
- ✓ 3.5% down payment covered
- ✓ No repayment required
- ✓ Combined with FHA financing
- ↑ Rate may be slightly higher than standard FHA
Down Payment Forgiven After Just 6 Months
One of my lenders offers a forgivable second lien that is fully forgiven after just 6 months — effectively making it a grant. Most forgivable programs require 3–5 years. This is one of the most flexible DPA programs available for Florida buyers today.
- ✓ 3.5% FHA down payment covered
- ✓ Fully forgiven after just 6 months
- ✓ Effectively functions as a grant
- ✓ Much faster than typical 3–5 year programs
- ↑ Rate may be slightly higher than standard FHA
These programs are real and can be a great fit for the right buyer — but they typically come with a slightly higher interest rate than a standard FHA loan. I'll always show you both options side by side so you can decide whether covering the down payment is worth the rate tradeoff for your situation.
Credit score requirement: Most lender DPA programs require a minimum credit score of 620–640 — slightly higher than the standard FHA minimum of 580. If your score is below 620, I'll work with you on a plan to get there or explore other options.
Low Down Payment Options for Florida Buyers
Here are the most common low down payment programs available — I'll compare them side by side and help you choose the one that fits your credit, income, and goals.
For Eligible Veterans & Service Members
VA loans allow qualified veterans, active duty service members, and surviving spouses to purchase a home with no down payment and no monthly mortgage insurance. One of the strongest loan programs available.
Learn About VA Loans →For Qualified First-Time Buyers
Conventional loans allow as little as 3% down for qualified first-time buyers. PMI is required below 20% but can be removed once you reach 20% equity — unlike FHA which requires MIP for the life of the loan in most cases.
Learn About Conventional Loans →For Buyers With Lower Credit Scores
FHA loans allow 3.5% down with credit scores as low as 580. More flexible qualification requirements make FHA a popular choice for first-time buyers who don't yet have strong credit.
Learn About FHA Loans →Other Ways to Reduce Your Out-of-Pocket Costs
Beyond the loan program itself, there are several strategies that can reduce how much cash you need to bring to closing.
Gift Funds
Most loan programs allow you to use gift money from a family member toward your down payment and closing costs. Proper documentation is required — I'll walk you through exactly what's needed.
Seller Concessions
In many Florida markets sellers will agree to contribute toward your closing costs as part of the purchase negotiation — effectively reducing the cash you need to close. Limits vary by loan program.
Lender Credits
Some loan programs allow you to accept a slightly higher interest rate in exchange for lender credits that cover closing costs — reducing upfront cash needed at closing.
Retirement Accounts
First-time buyers may be able to withdraw from an IRA without the typical early withdrawal penalty for a home purchase. Consult your financial advisor — this can be a useful source of down payment funds.
Co-Borrower
Adding a co-borrower — such as a parent or family member — to the loan can increase qualifying income and potentially allow for a lower down payment by combining assets.
Employer Benefits
Some employers offer homebuying assistance programs as part of their benefits package. Worth checking with your HR department — especially for large employers in healthcare, education, and government.
Common Down Payment Myths — Busted
These misconceptions keep qualified buyers waiting longer than they need to. Here's the truth.
You need 20% down to buy a home
✓ FactMost buyers put down far less. The average first-time buyer puts down around 6-7%. VA loans require $0 down, conventional starts at 3%, and FHA at 3.5%.
You can't use gift money for a down payment
✓ FactGift funds from family members are allowed on most loan programs including FHA, VA, and conventional — with proper documentation. I'll tell you exactly what's needed.
A low down payment means a much higher payment
✓ FactThe difference in monthly payment between 3% and 10% down on a $350K home is often less than $200/month — and preserving that cash may be worth more than eliminating PMI.
You need perfect credit to buy with a low down payment
✓ FactFHA loans allow credit scores as low as 580 with 3.5% down. VA loans have flexible credit requirements. Conventional starts at 620. There are options for most credit profiles.
How to Find Out What You Qualify For
Finding out your real down payment options takes about 15 minutes. Here's the process.
Quick Conversation
We'll talk through your income, credit range, savings, and goals. No credit pull required to start — just a conversation to understand your situation.
Compare Your Options
I'll show you side-by-side what each program looks like for your situation — payment, down payment required, PMI, and total cash to close.
Get Pre-Approved
Once you choose the right program, I'll get you fully pre-approved — usually the same day documents are received — so you can shop with confidence.
Explore Your Loan Options
Each loan program has different down payment requirements, credit standards, and costs. Here's where to learn more.
FHA Loans
3.5% down. Flexible credit. Most popular first-time buyer loan program in Florida.
VA Loans
$0 down for eligible veterans. No monthly mortgage insurance. Best program available for those who qualify.
Conventional Loans
3% down for first-time buyers. PMI removable at 20% equity. Best for buyers with stronger credit.
Get Pre-Approved
Find out exactly how much home you can buy and what your down payment options look like — same day turnaround.
First-Time Buyer Guide
Complete guide for first-time buyers in Florida — programs, process, common mistakes, and next steps.
Buy a Home
Ready to start shopping? Get pre-approved and move forward with confidence from application through closing.
Down Payment FAQs
What is the minimum down payment to buy a home in Florida?
It depends on the loan program. VA loans allow $0 down for eligible veterans. Conventional loans start at 3% for qualified first-time buyers. FHA loans require 3.5% down with a credit score of 580 or higher. I'll compare all options side by side for your specific situation.
Can I use gift money from family for my down payment?
Yes — gift funds from family members are allowed on most loan programs including FHA, VA, and conventional. The gift must be properly documented with a gift letter confirming it doesn't need to be repaid. I'll walk you through exactly what's needed.
What credit score do I need to buy a home with a low down payment?
It depends on the program. Standard FHA loans allow scores as low as 580 with 3.5% down. However lender-paid DPA programs typically require a minimum of 620–640 — slightly higher than standard FHA. Conventional loans require 620+ for 3% down. VA loans have flexible requirements for eligible veterans. If your score is below 620 I can help you map out a plan to get there.
Is it better to put more down or keep cash in savings?
It depends on your full financial picture. A larger down payment reduces your monthly payment and eliminates PMI faster — but leaving cash in savings provides financial security and flexibility. I'll help you run the numbers for your specific situation so you can make an informed decision rather than guessing.
Can the seller help pay my closing costs?
Yes — seller concessions are common in Florida's market. Depending on the loan program and purchase price, sellers can contribute toward your closing costs, effectively reducing the cash you need at closing. Your Realtor negotiates this as part of the offer.
Do I need to be a first-time buyer to qualify for a low down payment?
Not necessarily. VA loans are available to any eligible veteran regardless of first-time buyer status. FHA loans are available to all buyers. The 3% conventional program is specifically for first-time buyers, but the standard 5% conventional option is available to any buyer.
What Does "Low Down Payment" Actually Cost in Florida?
Here's what real down payment amounts look like at common Florida price points in 2026 — so you can see exactly what you'd need to bring.
*Lender DPA covers the down payment — closing costs may still apply. Rate may be slightly higher than standard FHA. Subject to lender guidelines and qualification.
Down Payment vs. Closing Costs — What's the Difference?
Many first-time buyers confuse down payment and closing costs. They're two separate expenses — and you need to plan for both.
Down Payment
The portion of the purchase price you pay upfront — the rest is financed through your mortgage. This is what low down payment programs and lender DPA help cover.
- → VA: $0
- → Conventional: 3–5%
- → FHA: 3.5%
- ✓ Can be covered by lender DPA programs
Closing Costs
Fees paid at closing to cover loan origination, title, appraisal, insurance, and prepaid items. These are separate from the down payment and typically run 2–4% of the loan amount in Florida.
- → Typically 2–4% of the loan amount
- → $7,000–$14,000 on a $350K purchase
- → Can be reduced via seller concessions
- ! Not covered by most DPA programs
Bottom line: Even with $0 down payment you'll typically still need funds for closing costs — unless the seller agrees to concessions or you use lender credits. I'll give you a full cash-to-close estimate upfront so there are no surprises.
Credit Score Requirements by Program
Your credit score determines which programs you qualify for and what rate you'll get. Here's a quick reference for 2026.
*Subject to lender guidelines. Rate may be slightly higher than standard FHA. Not all applicants will qualify.
Helping Florida Buyers Throughout Central Florida
Based in Winter Garden, I help first-time buyers and low down payment buyers throughout the Orlando metro and across Florida find the right program for their situation.
Find Out How Little You Actually Need
Stop guessing and start planning. I'll show you exactly what your down payment options look like based on your credit, income, and goals — no obligation, no pressure.