The real cost of an FHA loan in Florida.

Cash you'll need

Down payment. 3.5% of the price with a 580 score or higher, 10% with scores from 500 to 579. It can come from savings, a family gift or an approved assistance program.** Earnest money.** A deposit with your offer, credited back at closing.** Inspections and appraisal.** Paid early. In Florida, older homes often also need a four point and wind mitigation inspection for insurance.** Closing costs.** Title insurance, lender and settlement fees, recording fees, and Florida's mortgage taxes: documentary stamps of $0.35 per $100 on the note and a 0.2% intangible tax on the mortgage, customarily paid by the buyer.** Prepaids.** Your first year of homeowners insurance and deposits into your escrow account for taxes and insurance.** Upfront mortgage insurance.** 1.75% of the loan, almost always added to the loan rather than paid in cash.

Who can pay for what

See gifts and seller help by loan to compare programs.

Sellers can contribute up to 6% of the price toward your closing costs, prepaids and even the upfront mortgage insurance, but not your down payment. In a slower market, that's a powerful negotiating tool.** Lender credits** can cover costs in exchange for a slightly higher rate. See the true cost of a mortgage.** Florida assistance programs** can cover much of the down payment and some closing costs. See Florida down payment assistance.** Family gifts** can cover the down payment and closing costs with proper documentation.

What's in your monthly payment

Principal and interest, property taxes, homeowners insurance, monthly mortgage insurance, and if applicable, HOA dues, CDD assessments and flood insurance. In Florida, insurance and CDD fees are often the surprise, so get quotes early.

No down payment option?

If the home is in an eligible area and your household income and debts fit, USDA may cost less than FHA, with no down payment at all.

Competing with stronger offers

Some sellers worry FHA buyers are riskier. The fix is preparation: a fully reviewed file before you offer, a lender who calls the listing agent, a realistic closing date, and an inspection period long enough to get insurance quotes. A well prepared FHA offer competes far better than most sellers expect.

Moving in with very little out of pocket

Jordan bought a townhome in Orlando with 3.5% down from savings and a gift from his parents. The seller agreed to cover most of his closing costs and prepaids.

His upfront mortgage insurance was financed into the loan, and his earnest money came back at closing. His real out of pocket was the down payment, inspection and appraisal.