Most first-time buyers think they need 20 percent down and perfect credit. Neither is true. VA and USDA loans can go to zero down for eligible buyers, FHA opens the door at 3.5 percent, and conventional loans now go as low as 3 percent. Florida also runs down payment assistance that can add real dollars to your closing table. The real first step is not touring houses. It is finding out what you can actually do, with no pressure and no commitment.
You do not have to figure this out in one giant leap. Take it in order and each step gets easier, because you are never guessing what comes next.
A first conversation is not an application and it is not a commitment. Call or text me, tell me roughly what you earn and what you have saved, and I can give you a realistic range in minutes. No credit pull, no paperwork required to just talk. The point is knowing whether you are looking at homes in the $250,000s or the $400,000s before you spend a weekend touring the wrong ones.
Twenty percent down is not a requirement, it is a number that stuck around in people's heads. If you are an eligible veteran, active duty, or surviving spouse, VA loans can go to zero down. If you are buying in a USDA-eligible area and fit the income limits, USDA can also go to zero down. FHA opens the door at 3.5 percent down with a credit score of 580 or higher. Conventional loans now go as low as 3 percent down for qualifying first-time buyers with a 620 or higher score. Twenty percent still has one real advantage, it removes mortgage insurance, and I will walk through that tradeoff with you honestly rather than just push you toward the biggest down payment possible.
Florida runs down payment assistance programs that can put real dollars toward your closing table, including Hometown Heroes for eligible workers, on top of whichever loan program fits you. These programs have their own income limits, occupation rules, and paperwork, so I keep the full breakdown on a dedicated page rather than trying to squeeze it in here. Go check it before you assume you do not qualify.
The single biggest mistake I see first-time buyers make is touring homes before we run the real numbers. A pre-approval is where your income, assets, and credit actually get verified, not estimated. I turn most of them around the same business day, and it is the letter your real estate agent needs in hand before they will write an offer on your behalf. Shopping before this step is shopping blind.
Your credit score decides which programs are open to you and what your mortgage insurance looks like. Closing costs typically run 2 to 5 percent of the loan amount in Florida, on top of your down payment, and cover things like the appraisal, title work, and lender fees. I go through both with you before contract, not after, so nothing at the closing table surprises you.
“The number one mistake I see is a buyer who starts shopping for a house before they know their own numbers.”Tony Fitzgerald · The Mortgage Jedi
These are the four doors most first-time buyers walk through. Which one fits you depends on your service history, where you are buying, and your credit, not just how much you have saved.
| Program | Minimum Down | Credit Score | Mortgage Insurance | Best For |
|---|---|---|---|---|
| VA Loan | 0% for eligible veterans | No official minimum, lender sets its own floor | No monthly PMI. An upfront VA funding fee applies, often waived for certain disability ratings. | Eligible veterans, active duty service members, and surviving spouses |
| USDA Loan | 0% in eligible rural and suburban areas | Typically 640 or higher | Upfront and annual guarantee fee in place of PMI | Buyers in USDA-eligible Florida areas within income limits |
| FHA Loan | 3.5% (10% if your score is 500 to 579) | 580 or higher for 3.5% down | Upfront and annual mortgage insurance premium (MIP) | Buyers with limited savings or a few dings on their credit |
| Conventional 3% Down | 3% | 620 or higher | Monthly PMI, removable once you reach roughly 20% equity | Steady-credit first-time buyers who want the lowest long-term cost |
| Conventional 20% Down | 20% | 620 or higher, better rates with more | None, PMI is not required at 20% down | Buyers who have saved more and want to skip mortgage insurance entirely |
For 2026, the standard conforming loan limit for a one-unit home is $832,750 in most of Florida, which is the ceiling before a loan moves into jumbo territory. See FHA loans and conventional loans for the full breakdown of each program, and 15 percent versus 20 percent down if you are deciding between the two once you are past the minimum.
I would rather tell you to wait six months than watch you close on a house that stretches you too thin. Here is how I actually think about it.
Every question has a reason. None of it is small talk.
Much less than 20 percent in most cases. Eligible veterans and USDA-eligible buyers can qualify for zero down. FHA opens the door at 3.5 percent down. Conventional loans go as low as 3 percent down for qualifying first-time buyers. Florida also runs down payment assistance programs that can add real dollars on top of whichever loan you choose. Twenty percent still has one advantage, it removes mortgage insurance, but it is not a requirement to buy.
FHA loans allow a credit score as low as 580 for 3.5 percent down, or 500 to 579 with 10 percent down. Conventional loans with 3 percent down typically want 620 or higher. VA loans do not set an official minimum, though lenders apply their own floor. Your score also affects your mortgage insurance cost, so a higher score usually saves you money even within the same program.
Closing costs are the fees on top of your down payment, things like the appraisal, title insurance, lender fees, and recording fees. In Florida they typically run 2 to 5 percent of the loan amount. Some of that can be covered by a seller credit or down payment assistance, and I map out your specific closing cost picture with you before you go under contract, not after.
Once you send your documents, I turn most pre-approvals around the same business day. The application itself takes most people 15 to 20 minutes on their phone, and it builds your exact document list as you go so there is no guessing what to send.
PMI, private mortgage insurance, protects the lender, not you, on a conventional loan when you put down less than 20 percent. It is usually removable once you reach roughly 20 percent equity, either through payments or appreciation, by requesting a review or refinancing. FHA loans use a different insurance called MIP, which works under its own removal rules that I will walk through for your specific loan.
Yes, on most loan programs, as long as the person gifting it is an eligible donor, usually a relative, and the money is documented properly with a gift letter and a paper trail showing where it came from. I ask about the source of your down payment early on every file precisely so we set this up right instead of scrambling for a paper trail later.
Not always. FHA and VA loans are open to repeat buyers too. Some conventional low-down programs and Florida down payment assistance programs do require you to not have owned a home in the last three years, which HUD counts as first-time even if you owned a home a decade ago. I check your specific eligibility against your history rather than assuming.
A Florida-specific note. Buying your first home in Sarasota, Manatee, Charlotte, Lee, or Hillsborough County comes with a few things a national guide will not tell you. Property insurance runs higher here than most of the country, and it belongs in your budget conversation from day one, not as a surprise at closing. If you are looking at a condo, HOA fees and the building's reserve funding can affect what loan programs are even available, so I check that early. And competition on move-in-ready homes in the $300,000 to $450,000 range still runs hot in this market, which is one more reason a real pre-approval before you start touring matters more here than almost anywhere else.
So humans, search engines, and AI assistants all get it right.
One short conversation, no commitment required, and you will know your real range before you tour a single house.
For education and illustration only. Any calculator results referenced elsewhere on this site are estimates based on numbers you enter, are not a quote, rate, offer, or commitment to lend, and do not include taxes, insurance, or all costs. Your actual terms depend on your complete application and credit approval. Tony Fitzgerald NMLS #1284924 · 1st Response Mortgage is a registered DBA of Barrett Financial Group, L.L.C., NMLS #181106 · FL License #MLD1880 · Equal Housing Lender · This is not a commitment to lend. All loans subject to credit approval.
Tony Fitzgerald · NMLS #1284924 · 1st Response Mortgage is a registered DBA of Barrett Financial Group, L.L.C. · NMLS #181106 · Florida License #MLD1880 · 2701 East Insight Way, Suite 150, Chandler, AZ 85286 · Licensed in Florida · Equal Housing Opportunity Lender