Are you looking to buy a house in Florida? Now’s the time to act! With 25.7% of homes selling below the listing price, you could save thousands. Plus, inventory has surged by 23.6%, giving you more options to choose from.
Homes have stayed on the market for a median of 67 days, which gives you more room to negotiate. Additionally, mortgage rates for a 30-year fixed loan range from 5.45% – 6.26 % and are expected to remain similar throughout 2025. The market is clearly leaning in the buyer’s favor, so why wait?
9 Steps to Buying a House in Florida
Florida offers 2% lower living costs, no state income tax, and 8,436 miles of coastline. It’s no surprise that 35% of Americans rank it among the top states to live in.
To help you make the most of the Sunshine State, here’s a simple 9-step guide to buying a home in Florida:
Step 1: Determine Your Purpose
Before you start your home search, decide why you’re buying a home. Are you looking for a long-term residence, an investment property, or a vacation home? It will help you decide on an ideal location and property type.
For instance, Miami’s booming rental market, with a median rent of $3,000, presents a lucrative investment opportunity. Meanwhile, cities like Tampa and Jacksonville attract permanent residents for their family-friendly neighborhoods and affordable living costs.
💡 Check your Florida affordability: Calculate Cost of Living in Florida to estimate expenses and choose the best city for your new home.
Step 2: Assess Your Financial Readiness
With the median household income in Florida at $63,062, it’s important to evaluate your financial situation before buying a home:
- Review Your Credit Score: Your credit score determines how much you can borrow and the interest rates you qualify for. A minimum credit score to buy a house in Florida is 500 for an FHA loan and 620 for a conventional loan.
- Calculate Your DTI Ratio: Lenders use the debt-to-income ratio to determine your mortgage eligibility. Ideally, your monthly debt payments should not exceed 36% of your gross monthly income.
- Determine Your Monthly Mortgage Budget: Decide how much you can afford for your monthly mortgage, including the loan, taxes, and insurance. A good rule of thumb is to keep housing costs under 28% of your gross monthly income.
» Free Mortgage Calculator: Use our free tool to calculate your monthly mortgage payments and stay on track with your budget.
Step 3: Explore Home-Financing Options
In Florida, the average down payment on a home ranges from 10% to 20%. However, there are several financing options to help you cover the costs:
1. Home Loans
| Loan Type | Down Payment | Key Benefit | Ideal For |
|---|---|---|---|
| FHA Loans | 3.5% | Low down payment, flexible credit score | First-time buyers |
| VA Loans | 0% | No down payment, lower interest rate | Veterans |
| USDA Loans | 0% | No down payment, lower interest rate | Rural homebuyers |
2. Assistance Programs
- First-Time Homebuyer Programs: If you’re buying a house for the first time in Florida, you should consider the Florida Assist Program. This program offers up to $7,500 for a down payment with favorable interest rates.
- Down Payment Assistance (DPA) Programs: Explore programs like the Opportunity Advantage Loan Fund or the Fannie Mae Sponsored DPA Assistance Mortgage Program. They provide down payment support with beneficial terms, such as an appraisal fee waiver.
Step 4: Research the Florida Housing Market
In Oct 2024, 25.7% of homes in Florida were sold below list price, indicating that it’s currently a buyer’s market:
- Single-Family Homes: In cities like Fort Myers and Cape Coral homes have stayed 70 days on the market. It means sellers are more likely to negotiate here.
- Affordable Condos: If you’re on a tight budget, Miami has affordable condos under $150,000. These properties saw a 36.4% increase in sales.
- Waterfront Properties: Home prices in coastal areas are expected to drop. If you’re a snowbird looking for a waterfront property, now could be a good time to buy.
Florida is prone to natural disasters. Hurricane Helene, which hit in Sept 2024, caused $26 million in property damages. So be cautious and assess insurance requirements before you buy a waterfront property.
Step 5: Get Pre-Approved for a Mortgage
86% of sellers favor buyers with a pre-approval. So, get pre-approved before house hunting in Florida to show you’re serious about the purchase and financially capable.
Pre-approval also speeds up the buying process, helps you negotiate better, and reduces delays in the transaction. Who wouldn’t want a smoother home purchase experience?
Get Pre Approved for a Mortgage in Florida🏡
Select Your Loan Type
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New Home Purchase
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Mortgage Refinance
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Cash-out Refinance
Step 6: Start Your Florida Home Search
Now that you’re financially ready, it’s time to find your dream home in the Sunshine State! Traditionally, buyers relied on real estate agents to navigate MLS listings and the local inventory, but this comes with hefty commissions. Instead, you can also:
- Search for Listings Online: Use online platforms to explore homes for sale in Florida. Look for neighborhoods that cater to your needs.
- Consider FSBO Homes: You can also search for Florida Homes For Sale By Owner. It allows you to bypass Realtor commissions and directly negotiate with sellers.
Browse Homes For Sale in Florida By Price and Type
Step 7: Make a Competitive Offer
Once you’ve found a home you like, it’s time to make an offer. Here’s what your home offer should include:
- Seller’s Name and Address: Include the seller’s legal name and property address.
- Offer Price: Offer an amount based on the Fair Market Value (FMV) and comparable sales.
- Down Payment: The portion of the purchase price that you pay upfront.
- Earnest Money: A deposit to show you’re serious, often 1%-2% of the offer price, credited toward the purchase.
- Contingencies: Conditions such as home inspection, appraisal, or financing that must be met for the deal to close.
- Concessions: Requests for the seller to cover some costs, like closing fees or repairs.
- Closing and Move-in Dates: Specify when you aim to close the deal and move in, based on your and the seller’s needs.
- Offer Deadline: Specify the date by which the seller must respond to the offer.
Step 8: Conduct Inspections and Appraisals
You should prioritize a home inspection in Florida that focuses on 5 key points. It includes:
- HVAC
- Plumbing
- Electrical
- Roofing
- Foundation
In hurricane-prone areas like Key West and Miami, wind mitigation inspections are essential. Also, Milestone Inspections are mandatory for condos over two stories and 30 years. It evaluates the structural integrity of the building, especially in coastal areas.
Additionally, lenders also mandate a home appraisal to ensure that the property’s value aligns with the loan amount. In Florida, home appraisals can cost between $300 to $600.
Step 9: Close on Your Florida Home
It can take 30 to 45 days to close on your Florida home after signing the purchase agreement. You’ll also need to pay closing costs, which are usually 2% to 5% of the home’s purchase price.
Before closing, do a final walkthrough to ensure the home’s condition and repairs are in the agreed-upon condition. Once everything is finalized, escrow will record the deed and hand you the keys to your new Florida home!
Should You Buy a House in Florida?
Absolutely! With more homes being sold below the list price, now is a great time to buy a house in Florida. Take the time to calculate your down payment, closing costs, and ensure your credit score is ready for quick pre-approval. With proper planning, you’ll be well on your way to secure your dream Florida home.
Frequently Asked Questions
Is Florida a good place to buy a home?
Yes, Florida is one of the best places to buy a house in the US. This is because it has a low cost of living, diverse housing options and levies no state income tax.
How much down payment do I need to buy a house in Florida?
It depends on the type of mortgage you choose. For a conventional loan, you have to put down 20%. On the other hand, FHA loans only need 5% money down.
What are the requirements to buy a house in Florida?
To buy a house in Florida, you'll need a minimum credit score of 620, proof of income, funds for a down payment, and a 36% debt-to-income ratio. You should also seek a pre-approval if you plan to apply for a mortgage.
What credit score do I need to buy a house in Florida?
For an FHA loan, you'll need a minimum credit score of 500, while conventional loans typically require 620 or higher. A better credit score can help you secure lower interest rates.
How to buy a house in Florida with no money?
You can buy a house in Florida with no money down by using USDA or VA loans.
