You’ve saved $20,000. Your credit score just hit 640. You’re scrolling Zillow every night looking at townhouses in Plantation or condos near Las Olas. And then someone tells you that you need 20% down to buy a house, which would be $70,000 on a $350,000 property — and suddenly homeownership feels impossible.
That 20% figure is one of the biggest myths in real estate. Most first-time buyers in South Florida put down far less. Some put down nothing at all.
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You Don’t Need 20% Down
FHA loans require 3.5% down if your credit score is at least 580. On a $350,000 home in Coral Springs or Deerfield Beach, that’s $12,250. If you’re a veteran, VA loans require zero down payment and no mortgage insurance. USDA loans also offer zero-down financing if you’re buying in eligible areas — and yes, parts of western Broward and Palm Beach counties still qualify as “rural” under USDA maps.
Conventional loans can go as low as 3% down if your credit score is 620 or higher. You’ll pay private mortgage insurance until you hit 20% equity, but PMI isn’t the dealbreaker people think it is. On a $350,000 purchase with 3% down, PMI might run $150 to $250 a month. That’s real money, but it’s not a reason to wait five more years while home prices climb another 15%.
The trade-off is this: lower down payments mean higher monthly payments and longer timelines to build equity. But in a market where rents in Fort Lauderdale are pushing $2,200 a month for a two-bedroom, paying an extra $200 in PMI while building equity often beats renting.
Credit Score Isn’t a Brick Wall
The national average FICO score in 2026 is around 715. If you’re sitting at 590, you’re not out of the game. FHA loans accept scores as low as 580 with 3.5% down. If your score is between 500 and 579, you can still qualify with 10% down.
Conventional loans typically require 620, but that’s a lender guideline, not a law. Some lenders will go lower if you have compensating factors — a larger down payment, low debt-to-income ratio, or significant cash reserves. VA and USDA loans don’t have official minimum credit score requirements, though most lenders impose overlays around 580 to 620.
If your score is below 580, you have options before you apply:
- Pay down credit card balances to below 30% of your limits.
- Dispute any errors on your credit report — there are errors on roughly one in five reports.
- Add yourself as an authorized user on a family member’s card with a long positive payment history.
- Don’t close old accounts. Length of credit history matters.
A 20-point bump in your credit score can save you half a percentage point on your interest rate, which translates to thousands of dollars over the life of the loan.
Income Requirements Are More Flexible Than You Think
There’s no minimum income to buy a house. Lenders care about your debt-to-income ratio, not your raw salary. If you make $50,000 a year and have no car payment, no student loans, and a $150 monthly credit card minimum, you’re in better shape than someone making $80,000 with $1,200 in monthly debt obligations.
Most lenders cap your DTI at 43% for conventional loans, though FHA loans can stretch to 50% with strong compensating factors. On a $4,000 monthly gross income, that means your total monthly debt payments — mortgage, property taxes, insurance, HOA fees, car loans, student loans, credit cards — can’t exceed $1,720 to $2,000 depending on the loan type.
Lenders verify income stability, not income level. If you’re a W-2 employee, they’ll want your last two pay stubs and two years of W-2s. If you’re self-employed, expect to provide two years of tax returns and proof that your business still exists. If you just started a new job, a signed offer letter usually works as long as you’re in the same field and not on probation.
Here’s what most people don’t realize: lenders count overtime, bonuses, and commission income if you’ve received it consistently for two years. If you’re a server in Boca Raton pulling $15,000 a year in reported tips, that counts. If you receive child support or alimony, that counts too — as long as you can prove it’ll continue for at least three more years.
Pre-Approval Isn’t Optional in South Florida
In Miami-Dade, Broward, and Palm Beach counties, homes move fast. A well-priced property in Pembroke Pines or Delray Beach can get multiple offers within 48 hours. Sellers won’t even look at your offer if you don’t have a pre-approval letter.
Pre-qualification is worthless. That’s the thing where you tell a lender your income and debts over the phone and they give you a rough estimate. Pre-approval means the lender pulled your credit, verified your income and assets, and issued a letter committing to lend you a specific amount. Pre-approval letters are typically good for 90 days.
Getting pre-approved before you start house hunting does three things:
- It tells you exactly what you can afford, so you don’t waste time looking at $400,000 houses when you’re approved for $320,000.
- It identifies problems early — if there’s a collections account you forgot about or a discrepancy in your tax returns, you find out now instead of two days before closing.
- It makes your offer stronger because the seller knows you’re a serious buyer who can actually close.
Most buyers in South Florida are competing against cash offers or investors. You need every advantage you can get.
Down Payment Assistance Programs Exist, and Most People Don’t Know About Them
The Florida Housing Finance Corporation administers down payment assistance programs in all 67 counties. The Florida Assist Program offers up to $10,000 as a deferred second mortgage for qualified buyers. That money doesn’t have to be repaid unless you sell, refinance, or stop living in the home.
Broward, Miami-Dade, and Palm Beach counties each have their own local programs on top of the state options. Some are income-restricted. Some are limited to certain neighborhoods. Some require you to take a homebuyer education course. But the income limits are higher than most people assume — often $90,000 to $110,000 for a household, depending on family size and location.
And here’s the part that surprises people: you don’t have to be buying your first home ever. Most programs define “first-time buyer” as someone who hasn’t owned a home in the past three years. If you sold a house in 2021 and have been renting since, you qualify.
The catch is that these programs run out of money. Florida Housing typically opens applications in the spring, and funds can be gone within weeks. You can’t apply after you’ve already gone under contract. You need to get pre-approved through a participating lender who knows how to layer the assistance into your loan.
What Closing Actually Costs
Closing costs in Florida typically run 2% to 5% of the purchase price. On a $350,000 home, expect $7,000 to $17,500. That includes title insurance, documentary stamp taxes, recording fees, the home inspection, the appraisal, the title search, prepaid homeowner’s insurance, and possibly flood insurance if you’re in a flood zone.
Florida charges documentary stamp taxes on the deed at $0.70 per $100 of the purchase price. On a $350,000 sale, that’s $2,450. The buyer typically pays this in South Florida, though it’s negotiable. Some counties also charge intangible taxes on the mortgage amount.
Title insurance is required by your lender and protects against defects in the chain of ownership. Florida is one of the few states where the seller customarily pays for the owner’s title policy, but the buyer pays for the lender’s policy. Expect $1,500 to $3,000 depending on the purchase price.
Home inspections run $300 to $500 for a single-family home, more for a larger property. Appraisals are usually $400 to $600. If you’re in a condo, add another $100 to $150 for the HOA estoppel letter, which discloses any outstanding fees or special assessments.
And then there’s flood insurance. If your property is in a high-risk flood zone and you’re using a federally backed mortgage, flood insurance is mandatory. Policies in South Florida can run $500 to $3,000 a year depending on your elevation and flood zone designation. A lot of buyers don’t budget for this and get blindsided at closing.
The Timeline From Offer to Closing
Florida closings typically take 30 to 45 days from the time your offer is accepted. The contract will specify a closing date, but delays happen. Appraisals take longer than they used to because there aren’t enough appraisers. Title searches sometimes uncover liens or judgments that need to be cleared. If you’re using an FHA loan, the underwriting process is slower than conventional financing.
Here’s the usual sequence:
- You make an offer. The seller accepts or counters.
- You go under contract and put down an earnest money deposit — usually $5,000 to $10,000, held in escrow by the title company or the seller’s real estate broker.
- You have an inspection period, typically 10 to 15 days, to get the property inspected and negotiate repairs or credits.
- The lender orders an appraisal.
- You get homeowner’s insurance quotes and finalize your loan.
- Three days before closing, you receive a Closing Disclosure showing your final numbers.
- Then you show up at the title company, sign a stack of documents, wire your down payment and closing costs, and get the keys.
The most common reason closings get delayed is that buyers don’t respond quickly enough to their lender’s requests. If the underwriter asks for two months of bank statements, send them the same day. If they need a letter explaining a $3,000 deposit, write it immediately. Every delay pushes your closing date back, and if you miss the deadline in your contract, the seller can walk and keep your earnest money deposit.
What to Watch Out for in South Florida
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HOA fees in South Florida are high. A condo in Fort Lauderdale or Hollywood can easily run $400 to $700 a month in association fees, and that’s before special assessments. Lenders include HOA fees in your debt-to-income ratio, so a $500 monthly HOA fee reduces your buying power by about $75,000 on a conventional loan.
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Special assessments are the real trap. The HOA decides to replace the roof or repave the parking lot, and every owner gets hit with a $10,000 bill. The seller is required to disclose pending special assessments, but they don’t always know about them. The estoppel letter from the HOA will show any approved assessments, but you need to read it carefully. A lot of buyers just skim the first page and miss the $15,000 assessment buried in the fine print.
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Flood zones matter more in South Florida than almost anywhere else in the country. FEMA flood maps are public, and you should check them before you make an offer. If the property is in Zone AE or VE, you’re in a high-risk area and flood insurance will be expensive. If it’s in Zone X, you’re in a low-risk area and coverage will be cheaper. Flood risk is based on elevation and proximity to water, not claims history.
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Property taxes in Florida are relatively low compared to the Northeast, but they vary widely by county. Broward and Palm Beach counties have higher millage rates than some neighboring areas. If you’re buying a homesteaded property, your taxes will likely jump after closing. The previous owner was getting a homestead exemption that capped their annual assessment increases at 3%. When the property changes hands, it gets reassessed at market value. On a $350,000 purchase, expect annual property taxes around $4,500 to $6,000 depending on the municipality.
Florida has no state income tax, which effectively increases your take-home pay compared to states like New York or California. That matters when lenders calculate your debt-to-income ratio. If you’re relocating from out of state, your buying power in Florida is higher than it was back home.
Hiring an Attorney Isn’t Required, But It Should Be
Florida doesn’t require a real estate attorney at closing. Title companies handle most residential transactions, and a lot of buyers close without ever speaking to a lawyer. That’s a mistake.
Say you’re buying a townhouse in Coral Springs and the title search reveals a mechanic’s lien from 2019 that the seller didn’t know about. Or the HOA estoppel letter shows a $12,000 special assessment that wasn’t disclosed. Or the seller tries to back out three days before closing because they got a better offer. These problems don’t fix themselves, and the title company isn’t your advocate.
An attorney reviews the contract before you sign it, examines the title commitment, identifies issues that could delay or kill the deal, and makes sure you’re not walking into a financial disaster. The cost is usually $500 to $1,500 depending on the complexity of the transaction. That’s cheap insurance when you’re making a $350,000 purchase.
Most first-time buyers don’t realize they can negotiate who pays for what. The standard Florida contract says the seller pays for title insurance and the buyer pays for inspections and appraisals, but everything is negotiable. In a buyer’s market, you can ask the seller to cover part of your closing costs or pay for a home warranty. In a seller’s market, you’re not getting concessions unless your offer is significantly above asking price.
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Start Now, Not When You’re Ready
The biggest mistake first-time buyers make is waiting until they feel ready. You’ll never feel ready. There will always be a reason to wait another six months. Your car needs new tires. You want to build your savings account up a little more. You’re not sure if you’ll stay in South Florida long-term.
Meanwhile, home prices in Broward and Palm Beach counties have climbed 40% since 2020. Rents have gone up 25%. Waiting costs you money.
Get pre-approved this month. Find out what you actually qualify for instead of guessing. If your credit score needs work, you’ll know exactly what to fix. If you don’t have enough saved for closing costs, you’ll know how much more you need and whether you qualify for assistance programs. If you’re approved for more than you’re comfortable spending, you can adjust your search accordingly.
The South Florida market isn’t slowing down. Inventory is still tight. Mortgage rates are higher than they were in 2021, but they’re not going back to 3%. If you’re waiting for the perfect moment, you’re going to be renting for a long time.
