The 20% down payment rule made sense in your grandparents' housing market. Today it is mostly a myth that keeps renters renting.
The real minimums
- VA loans: 0% down. For veterans, active military, and eligible surviving spouses. No monthly mortgage insurance either.
- USDA loans: 0% down. For homes in eligible rural and suburban areas, more of Florida qualifies than you would expect.
- Conventional: 3% down. Qualified first-time buyers can put down as little as 3%.
- FHA: 3.5% down. With a credit score of 580 or higher.
What that looks like in dollars
On a $350,000 Florida home:
- 20% down = $70,000
- FHA 3.5% down = $12,250
- Conventional 3% down = $10,500
- VA or USDA = $0
And assistance can cut it further
Florida's Hometown Heroes program offers up to $35,000 in down payment and closing cost help for eligible full-time workers. County SHIP programs add grants and zero-interest second mortgages for income-qualified buyers. Stack those on an FHA loan and some buyers close with almost nothing out of pocket.
Where 20% does still matter
Putting 20% down removes mortgage insurance and lowers your payment. If you have it, great. But waiting years to save it while paying rent, and while prices move, is usually the more expensive choice.
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