Can I buy a house in Florida with less than 20 percent down?

Yes. Most buyers do. Conventional loans start at 3 percent down and FHA at 3.5 percent, and the cost of putting down less is mortgage insurance added to the monthly payment. Consult a mortgage lender to compare the options.

Is the escrow deposit refundable?

It depends on the contract. Florida's standard contracts return the deposit if you cancel within the inspection period, or if a financing or other contingency in the contract is not met. Once those dates pass, a buyer who walks away can lose it, so the dates in the contract matter as much as the price.

Do cash buyers pay closing costs?

Yes, but much less. A cash buyer still pays for title work, settlement fees, recording and usually an owner's title policy where the buyer pays it by local custom, but there are no lender fees and no taxes on a mortgage.

How Much Money Do You Need to Buy a House in Florida?

Reviewed by Tyson E. Sam, Founder and Broker of Record, BreakThru Realty, Florida License 3565210

Published October 4, 2026

The Short Answer

Plan for three amounts: the down payment, the closing costs and a cash reserve. Down payments start at 3 percent of the price on a conventional loan and 3.5 percent on an FHA loan, and eligible veterans can put nothing down with a VA loan. Closing costs on a financed purchase commonly add 2 to 5 percent of the price, and condos, jumbo loans and second homes usually need more down.

The Down Payment

The minimum depends on the loan. Conventional loans for a primary home start at 3 percent down for qualifying buyers, FHA loans at 3.5 percent, and VA and USDA loans can require nothing down for those who are eligible. Putting down less than 20 percent on a conventional loan adds private mortgage insurance to the monthly payment until you have enough equity. Jumbo loans, second homes, investment properties and many condos call for more, often 10 to 25 percent. Consult a mortgage lender for the figure that applies to you.

Closing Costs

On top of the down payment, a buyer using a mortgage commonly pays 2 to 5 percent of the price at closing: lender fees, the appraisal, Florida's taxes on the mortgage, title insurance, and the first year of homeowners insurance with a few months of taxes and insurance paid into escrow. A cash buyer pays far less, because most of these costs come from the loan. Your lender's Loan Estimate lists them within three business days of your application.

The Escrow Deposit Comes First

When your offer is accepted you pay an escrow deposit, often called earnest money, to the title company or the broker's escrow account. The amount is negotiated; a few percent of the price is common, and a larger deposit makes an offer stronger. It is credited toward your down payment and closing costs at closing, so it is not an extra cost, but you need it in cash within days of signing.

Reserves and the First Year

Lenders often want to see a few months of payments left in the bank after closing, and you will want it too. In South Florida the first-year bills that surprise buyers are homeowners insurance, flood insurance where it is required, association dues and move-in fees, and a property tax bill that resets to your purchase price the year after you buy.

Help With the Down Payment

Florida Housing and several counties and cities offer down payment and closing cost assistance to buyers who meet income, price and occupation limits, and the funds open and close through the year. Gifts from family are allowed on most loans with a signed gift letter. Our homebuyer program pages list the programs for first-time buyers, veterans, nurses, teachers, first responders and others, and a lender approved for the program confirms what you qualify for.

Talk It Through With a Broker

Every purchase is its own set of numbers. Tell us what you are looking for and a BreakThru agent will walk you through the costs, the contract and the homes that fit. Talk to a BreakThru agent · Search homes for sale