First-time Homebuyer Loans Florida, 3% Down

This low down payment First-time Homebuyer loan in Florida allows you to obtain loan amounts up to $715,000 with only a 3% down payment. To be considered a first-time buyer, you must not have owned a home in the past three years. However, with this loan program, you simply must not own any properties currently.

You can use your own funds or gift funds from a family member for the down payment are allowed, and the home must be an owner-occupied single-unit home (including condos). This means you can’t buy two- to four-unit properties, a second home, or investment properties with this loan.

Conventional 97% of mortgages are 30-year fixed loans and do require mortgage insurance. Mortgage insurance is an extra fee on top of the monthly mortgage payment.

Florida First-time homebuyer loan program requirements

• 620 minimum credit score.
• Condos, single-family homes, and townhomes.
• 4-year waiting period for prior short sales, and bankruptcies.
• 50% maximum DTI.
• A 3% down payment can be gifted from a relative.

If you’re a first-time buyer in Florida with a 20% down payment, you can get a conventional loan with a low-interest rate. And you never have to pay for private mortgage insurance (PMI). The same goes for buyers anywhere in the nation.

Of course, few first-time buyers have saved a 20% down payment. But the good news is, you don’t need one.

Florida buyers have access to mortgage programs that require as little as 3% down or even no money down:

• Conventional 97: From Freddie Mac or Fannie Mae. 3% down payment and 620 minimum credit score. You can usually stop paying mortgage insurance after a few years
• FHA loan: Backed by the Federal Housing Administration. 3.5% down and a 580 minimum credit score. But you’re on the hook for mortgage insurance until you refinance to a different type of mortgage, move, or pay off your loan
• VA loan: Only for veterans and active-duty service members. Zero down payment is required. The minimum credit score varies by lender but is often 620. No ongoing mortgage insurance after closing. These are arguably the best mortgages available, so apply if you’re eligible
• USDA loan: For those on low-to-moderate incomes buying in designated rural areas. Zero down payment required. Credit score requirements vary by lender but are often 640. Low mortgage insurance rates