Buying in Florida With a Small Down Payment: What Most Borrowers Don’t Know

You Don’t Need 20% Down to Buy a Home in Florida

Saving for a large down payment is one of the biggest concerns for Florida homebuyers. Many people believe they need 20% down just to qualify. But the truth is, most borrowers can buy with far less—and often with financial help they didn’t even know existed. If you’re looking to buy a home in Florida but worried about cash upfront, here’s what most buyers don’t realize.

LBC Capital helps clients unlock low down payment solutions every day. With our expertise and access to Florida’s top programs, we make homeownership more affordable than many borrowers expect.

Most Loan Programs Require Much Less

The traditional 20% down payment is not a requirement for most buyers. That figure originated from conventional loan standards decades ago. Today, multiple financing options let you buy a home in Florida with as little as 3% down.

FHA loans, for example, allow qualified borrowers to purchase with just 3.5% down. Conventional loans through Fannie Mae or Freddie Mac may offer 3% down options for first-time buyers with good credit. These lower down payment options have helped thousands of Floridians move into homes without needing to save for years.

Zero-Down Options Are Available

Some buyers qualify for zero-down loans. VA loans, backed by the U.S. Department of Veterans Affairs, require no down payment for eligible veterans and active-duty service members. USDA loans offer 100% financing in designated rural and suburban areas, making them another great option for buyers with limited savings.

LBC Capital works directly with clients to determine eligibility for these programs. Whether you’re a first-time buyer, veteran, or purchasing in a rural location, we help find the best financing with the lowest upfront cost.

Florida Offers Extensive Down Payment Assistance

Statewide Programs That Support First-Time Buyers

Florida offers multiple statewide down payment assistance (DPA) programs to help reduce the out-of-pocket costs of buying a home. These programs are often available to both first-time and repeat buyers who meet income and credit guidelines.

Programs like Florida Assist can provide up to $10,000 in assistance through a second mortgage with deferred payments and 0% interest. This allows you to use the funds toward your down payment or closing costs—without affecting your monthly mortgage payment right away.

Another option is the Florida Hometown Heroes program, which offers up to $35,000 for frontline community workers. This includes teachers, nurses, law enforcement officers, firefighters, and other essential professionals. This program helps those who serve the community afford homes in the areas they work.

Local Programs Add Even More Benefits

In addition to statewide assistance, many Florida counties and cities offer their own programs. These include forgivable loans, grants, or deferred-payment second mortgages to help cover the down payment or closing costs.

For example, in cities like Tampa, Orlando, and Miami, local housing authorities provide programs tailored to their communities. Depending on your location and income, you may be eligible for additional support that stacks with state assistance—giving you access to thousands more in help.

LBC Capital guides clients through both state and local DPA options. We ensure you’re not leaving money on the table by identifying every program you may qualify for.

Many Assistance Programs Are Forgivable

What Forgivable Means for Borrowers

Forgivable loans are a powerful tool for buyers who qualify. These loans do not require repayment as long as you meet certain conditions—typically living in the home for a set number of years. If you stay in your home for the full term (usually five to ten years), the loan is forgiven, and you owe nothing.

This makes homeownership more affordable and reduces long-term debt. For many buyers, it’s the equivalent of receiving a grant.

LBC Capital helps clients determine which assistance programs are forgivable and what requirements must be met. We make sure you fully understand your obligations before closing.

You Still Need to Meet Program Requirements

Credit Score and Income Guidelines

Down payment assistance is not guaranteed for every borrower. Most programs have minimum credit score requirements, typically around 640, though some allow lower scores with compensating factors.

Income limits also apply. These vary by county and household size, so what qualifies in one part of Florida may not apply in another. In general, programs are designed to help moderate-income households who can afford a mortgage but struggle with the upfront costs.

LBC Capital reviews your financial profile to match you with the most appropriate programs based on your income, credit, and location.

Homebuyer Education Is Often Required

Many down payment assistance programs require homebuyer education courses. These classes help prepare you for the responsibilities of owning a home and cover key topics like budgeting, home maintenance, and understanding your mortgage.

Most courses can be completed online and are offered by HUD-approved counseling agencies. Once completed, you’ll receive a certificate that’s often required to qualify for assistance.

LBC Capital connects clients with approved education providers so the process is smooth and easy.

Consider Mortgage Insurance With Low Down Payments

Understanding the Cost of PMI

When you buy a home with less than 20% down, most lenders require private mortgage insurance (PMI). This protects the lender in case you default but adds a monthly cost to your mortgage payment.

PMI can range from $50 to several hundred dollars per month, depending on your credit score, loan amount, and loan type. Some loan programs, like FHA loans, include mortgage insurance for the life of the loan unless you refinance into a conventional loan later.

While PMI increases your monthly cost, it allows you to buy sooner without waiting to save a larger down payment. LBC Capital helps clients compare the total costs and decide when PMI is worth it—and how to remove it later.

LBC Capital Makes Homeownership Possible With Less Cash

LBC Capital understands the challenges that come with buying a home in today’s market. That’s why we offer expert guidance, low down payment loan options, and access to every relevant assistance program in Florida.

We don’t just help you get a mortgage—we help you get the right mortgage for your financial situation. Whether you’re a first-time buyer, veteran, or moving into your forever home, we make the process simple, affordable, and transparent.

The Bottom Line: You May Need Less Than You Think

Buying in Florida doesn’t require 20% down. With the right strategy, many buyers get into homes with as little as 3% down—or even zero. State and local assistance programs can dramatically reduce how much cash you need upfront, especially when paired with low down payment loans.

What most borrowers don’t know is this: You may already qualify for help. And with the right lender, you don’t have to navigate it alone.

LBC Capital is here to guide you through every step of the process, making your path to homeownership in Florida easier and more affordable.