The down payment depends on how you buy
There's no single number. It depends on whether you finance, with which program, and your profile as a buyer:
- ·Conventional (resident): from 3% down, typically 5%–20%.
- ·FHA (primary residence): from 3.5% down.
- ·Financed foreign buyer: "foreign national" loans, usually 30%–40% down.
- ·Cash: 100% of the price, no down payment or interest.
The closing costs on top of the down payment
Beyond the down payment, the buyer pays closing costs: between 2% and 5% of the price. They include inspection, appraisal (if financing), title, escrow and prepaid tax and insurance. On $400,000, that's roughly $8,000 to $20,000. We detail them per property before you make the offer, so they don't surprise you at closing.
Reserves: what almost nobody tells you
Lenders usually want you to have a few months of reserves (the monthly payment saved) after closing. And even paying cash, it's wise not to leave yourself without a cushion: in Florida insurance and property tax are real costs that come every year. That's why your budget isn't just down payment plus closing; it's also what you can sustain monthly.
Buying to live has a tax advantage: homestead
If the home will be your primary residence, Florida offers the "homestead exemption": it reduces the taxable base of your property tax (up to $50,000 exemption) and caps how much your assessment can rise each year (the "Save Our Homes" cap, 3% annually). It doesn't apply to investment properties or second homes. It's one reason buying to live works out differently than buying to rent, and we factor it into your real monthly cost.
How much you need on a $400,000 home (reference)
| Item | Estimated range | Notes |
|---|---|---|
| FHA (3.5% down) | ~$14,000 + closing | Primary residence, resident |
| Conventional 5% | ~$20,000 + closing | Standard profile |
| Conventional 20% | ~$80,000 + closing | No mortgage insurance (PMI) |
| Financed foreign buyer (30–40%) | ~$120,000–$160,000 + closing | Foreign national loan |
| Cash | $400,000 + closing | No down payment or interest |
| Closing costs (all cases) | 2%–5% ≈ $8,000–$20,000 | Added to the down payment |
Reference calculations on a $400,000 price; actual amounts change with price, lender and profile. Not a quote or financial advice. Loan programs and percentages are market standards, not a credit offer.
Down payment and closing cost percentages per U.S. lending standards; the homestead exemption and Save Our Homes cap per Florida law (property appraiser). B&M coordinates the closing; for financing and taxes we connect you with a lender and a CPA. Brokered by Antorcha Real Estate Group.
Frequently asked questions
- How much down payment do I need to buy a house in Florida?
- It depends on the program. Conventional from 3%, FHA from 3.5% for a primary residence, and as a financed foreign buyer usually 30%–40%. Cash is 100% of the price.
- How much are closing costs for the buyer?
- Between 2% and 5% of the price. On $400,000, roughly $8,000 to $20,000. They include inspection, title, escrow and prepaid tax and insurance. We detail them before you make an offer.
- Can I buy without being a resident or having U.S. credit?
- Yes. Many foreigners buy cash or with a "foreign national" loan (30%–40% down). You don't need to be a resident; for the tax identification number we guide you.
- What is the homestead exemption and who benefits?
- It's a Florida tax benefit for your primary residence: it reduces your property tax base (up to $50,000 exemption) and caps the annual rise of your assessment (3% cap). It doesn't apply to investment or second homes.
- Do you help me calculate my exact number?
- Yes. Before searching we define your real budget: down payment, closing, reserves and the monthly cost with insurance, tax and HOA included. So you don't fall for a home that doesn't work in your number.