Mortgage & Rates
What Is the Minimum Down Payment for a House? Florida Buyer's Guide
July 5, 2026 · 9 min read · By Pure Equity Realty
The minimum down payment for a house is far lower than most buyers think. Depending on the loan, the real floor is zero to 3.5 percent, and the typical first-time buyer put down about 10 percent in 2025, not 20.
The minimum down payment for a house is far lower than most buyers think. The old rule that you need 20 percent down has not been true for decades. Depending on the loan program, the real floor ranges from zero to 3.5 percent of the price, and in 2025 the typical first-time buyer put down about 10 percent, not 20. Pure Equity Realty helps South Florida buyers line up financing every week, so here is a clear, current breakdown of what you actually need to put down.
Key takeaways
- Conventional loans go as low as 3 percent down; FHA is 3.5 percent with a 580+ credit score.
- VA and USDA loans allow 0 percent down for buyers who qualify.
- You do not need 20 percent. NAR data shows the median first-time buyer put 10 percent down in 2025.
- The main reason 20 percent matters is that it lets you avoid private mortgage insurance on a conventional loan.
Minimum down payment for a house by loan type
There is no single minimum down payment for a house. It depends entirely on the loan you use, and each program sets its own floor.
- Conventional (Fannie Mae, Freddie Mac): as low as 3 percent. First-time and lower-income buyers can use programs like HomeReady and Home Possible at 3 percent down with a credit score around 620. A standard conventional loan usually starts at 5 percent.
- FHA: 3.5 percent with a credit score of 580 or higher. If your score is 500 to 579, the minimum rises to 10 percent. FHA is popular with first-time buyers who have thinner credit.
- VA: 0 percent. Eligible veterans, active-duty service members, and qualifying spouses can finance 100 percent of the price with no monthly mortgage insurance. There is a one-time funding fee.
- USDA: 0 percent. For eligible buyers in qualifying rural and suburban areas within income limits, USDA loans require no down payment. Parts of the outer suburbs and Treasure Coast can qualify.
- Jumbo: usually 10 to 20 percent. Loans above the conforming limit are set by individual lenders rather than a federal agency, so the minimum varies. Plenty of South Florida luxury purchases fall into this bucket.
The 20 percent down payment myth
The belief that you must save 20 percent keeps a lot of would-be buyers on the sidelines longer than they need to be. The data tells a different story. According to the National Association of Realtors, the median down payment for first-time buyers was 10 percent in 2025, and repeat buyers put down 23 percent. Across all buyers the median was 19 percent, but that number is pulled up by move-up buyers rolling equity from a previous home into the next one. If this is your first purchase, 3 to 10 percent is far more typical than 20.
What PMI and MIP add to the picture
So why does 20 percent get all the attention? Because on a conventional loan, putting down less than 20 percent means you pay private mortgage insurance, or PMI, until you build 20 percent equity. PMI protects the lender, not you, and it adds to your monthly payment, generally a few hundred to over a thousand dollars a year depending on your credit and down payment. The upside: under federal law, PMI can be cancelled once you reach 20 percent equity and automatically ends at 22 percent, so it is not permanent.
FHA loans work differently. They carry a mortgage insurance premium, or MIP, with an upfront charge plus an annual amount. If you put down less than 10 percent, FHA MIP lasts the life of the loan, which is a real reason many buyers refinance into a conventional loan later once they have equity. Weighing PMI against a slightly larger down payment is a conversation worth having with your lender.
What a down payment looks like in South Florida dollars
South Florida home prices run higher than the state as a whole, so percentages translate into real money. On a $450,000 home, roughly a median price across the region, here is what each tier looks like. These figures are simple arithmetic to illustrate the range, not a quote.
| Down payment | On a $400,000 home | On a $450,000 home | On a $500,000 home |
|---|---|---|---|
| 3% (conventional) | $12,000 | $13,500 | $15,000 |
| 3.5% (FHA) | $14,000 | $15,750 | $17,500 |
| 5% (conventional) | $20,000 | $22,500 | $25,000 |
| 10% | $40,000 | $45,000 | $50,000 |
| 20% | $80,000 | $90,000 | $100,000 |
Remember to budget for closing costs on top of the down payment, generally another 2 to 5 percent of the price. Our guide to who pays closing costs in Florida breaks those down, and you can run the numbers on our mortgage calculators.
Down payment assistance can lower the bar further
Florida runs programs that help cover the down payment and closing costs for income-qualified and first-time buyers, including Florida Hometown Heroes and Florida Assist. These sit on top of a low-down-payment loan rather than replacing it, and eligibility depends on income, price limits, and sometimes occupation. We cover them in detail in our guide to Florida down payment assistance programs. Because terms and open dates change, confirm current availability with a lender or Florida Housing directly.
How much should you actually put down?
The minimum is not always the smartest number. A larger down payment lowers your monthly payment and can help you skip PMI, but draining your savings to hit 20 percent can leave you exposed if the roof or the AC fails, which happens in Florida. The right answer balances your monthly comfort, your cash reserves, and the loan you qualify for. If you are budgeting for the whole move, our look at the cost of living in South Florida puts the ongoing numbers in context.
Frequently asked questions
What is the lowest down payment you can make on a house?
Zero, if you qualify for a VA or USDA loan. Otherwise the practical floor is 3 percent on a conventional loan or 3.5 percent on an FHA loan with a 580+ credit score.
Do I really need 20 percent down to buy a house?
No. The median first-time buyer put down 10 percent in 2025. Twenty percent mainly matters because it lets you avoid private mortgage insurance on a conventional loan.
What is PMI and how long do I pay it?
PMI is private mortgage insurance charged on conventional loans with less than 20 percent down. It can be cancelled at 20 percent equity and ends automatically at 22 percent under federal law.
How much is a down payment on a $400,000 house in Florida?
At 3 percent it is $12,000, at 3.5 percent (FHA) it is $14,000, at 10 percent it is $40,000, and at 20 percent it is $80,000, before closing costs.
This article is general information, not financial or lending advice. Loan terms, rates, and program eligibility change and vary by borrower. Confirm current details with a licensed lender.
Sources
- National Association of Realtors, 2025 Profile of Home Buyers and Sellers
- Fannie Mae, HomeReady Mortgage
- U.S. Department of Veterans Affairs, VA Home Loans
- USDA, Single Family Housing Guaranteed Loan Program
- Consumer Financial Protection Bureau, What is PMI?
- Florida Housing Finance Corporation, Hometown Heroes
Ready to figure out your real number? Pure Equity Realty can connect you with trusted South Florida lenders and match your budget to the right neighborhoods. Get in touch or start browsing homes for sale.
