First-Time Home Buyer’s Guide to Florida.Start With Confidence.

Buying your first home in Florida is exciting, and it works a little differently than buying in many other states. Insurance, flood zones, association rules, and Florida’s property tax system all shape what a home really costs from month to month. This guide walks through the process in order, so you know what to expect at each step and which questions to ask.

Step 1: Know Your Real Monthly Budget

A lender will tell you how much you can borrow. What matters more is the monthly payment you’re comfortable living with. In Florida, that payment usually includes more than the mortgage itself:

• Principal and interest on your loan.
• Property taxes, billed once a year by your county and often collected monthly by your lender through an escrow account.
• Homeowners insurance. When you get quotes, ask how windstorm (hurricane) coverage and deductibles work on each policy.
• Flood insurance, if your lender requires it or you choose to carry it. Standard homeowners policies don’t cover flood damage.
• HOA or condo association dues, if the property has an association.
• Mortgage insurance, which lenders usually require on a conventional loan with less than 20% down. FHA loans have their own mortgage insurance premiums.

Use the calculator below to test different prices, down payments, and rates. For taxes and insurance, use real quotes or the county’s estimate for the specific home whenever you can.

Good to know: For many conventional loans, federal law lets you ask your servicer to cancel private mortgage insurance once your balance is scheduled to reach 80% of the home’s original value, and it generally ends automatically at 78% if you’re current on payments.

Step 2: Get Pre-Approved Before You Tour

A pre-approval means a lender has reviewed your income, assets, and credit and is prepared to lend up to a certain amount. In a competitive market, sellers often expect to see one with your offer, and it keeps your search focused on homes that fit.

• Compare more than one lender. After you apply, a lender must give you a Loan Estimate within three business days. Comparing Loan Estimates side by side is the easiest way to compare rates and fees.
• Ask about loan programs. Conventional, FHA, VA, and other programs each have different down payment and mortgage insurance rules. FHA loans, for example, allow as little as 3.5% down for borrowers who meet the credit requirements.
• Keep your finances steady. Avoid opening new credit, making large purchases, or moving money around without checking with your lender first.

Down Payment Help in Florida

The Florida Housing Finance Corporation offers homebuyer programs, including down payment and closing cost assistance, through participating lenders. Some programs, such as Hometown Heroes, are aimed at eligible workers in specific professions. Eligibility, income limits, and amounts change, so ask your lender which programs you may qualify for.

Step 3: Choose How You Want to Be Represented

Florida law allows a real estate licensee to work with you as a transaction broker, as a single agent, or with no brokerage relationship. Unless a single agent or no brokerage relationship is set up in writing, Florida presumes the licensee is working as a transaction broker. Each relationship comes with specific duties to you, which we explain on our Brokerage Relationship Disclosure page.

Under current industry rules, many agents (including REALTORS®) will ask you to sign a written buyer agreement before touring homes together. It spells out the services you’ll receive and how your agent is paid. Compensation is negotiable and isn’t set by law, so ask questions and make sure you understand the agreement before you sign.

Step 4: Shop With Florida in Mind

Start browsing on our home search, then look closely at the details that are especially important in Florida:

• Flood zone. Look up the address on FEMA’s Flood Map Service Center and ask whether an elevation certificate is available. If the home is in a high-risk flood zone and you’re using a federally backed or regulated mortgage, your lender will require flood insurance.
• The seller’s flood disclosure. Florida requires sellers of residential property to give buyers a flood disclosure at or before the time the contract is signed. It covers whether the seller knows of flooding that damaged the property during their ownership, whether they filed a flood insurance claim, and whether they received assistance for flood damage.
• Insurance quotes early. Get quotes while you’re still deciding, not after. The age of the roof and wind protection features can affect your premium, and Florida law requires insurers to offer discounts or credits for qualifying windstorm mitigation features.
• HOA communities. For many homes in a homeowners association, the seller must provide a disclosure summary. If you don’t receive it before signing, you can cancel within 3 days of receiving it or before closing, whichever comes first.
• Condominiums. When buying a resale condo, you’re entitled to the association’s key documents. Unless you received them more than 7 days (excluding weekends and legal holidays) before signing, you have 7 days after receiving them to cancel.
• Condo building inspections. Condo buildings three habitable stories or taller must have a milestone structural inspection by the end of the year they turn 30, then every 10 years, plus a structural integrity reserve study at least every 10 years. Ask for these reports and any planned special assessments before you commit.

Step 5: Make an Offer and Use Your Inspection Period

Most Florida residential sales use standard contract forms. Your offer sets the price, your escrow deposit, the length of your inspection period, your financing terms, and your closing date. A few things to watch for:

• Inspection period. Use it fully: a general home inspection, plus a wind mitigation report and any specialty inspections the home calls for. Your insurer may also ask for a four-point inspection on older homes.
• Property taxes. Florida contracts include a disclosure warning buyers not to rely on the seller’s current tax bill. After a sale, the property is reassessed at market value as of the next January 1, so your taxes may be higher than the seller’s.
• Appraisal and financing. If the appraisal comes in low or your loan isn’t approved, your contract terms determine your options, so review deadlines carefully.

Step 6: Plan for Closing Costs

Beyond your down payment, budget for closing costs. Some of them are specific to Florida. Buyers who finance usually pay documentary stamp tax on the note (35 cents per $100 borrowed) and the nonrecurring intangible tax on the mortgage (2 mills, or $2 per $1,000 borrowed), plus lender, title, and recording fees. Our guide to Florida closing costs breaks down each item.

You’ll receive your Closing Disclosure at least three business days before closing. Compare it with your Loan Estimate and ask about any differences.

Protect your money: Wire fraud often targets homebuyers. Before you wire your funds, always confirm the instructions by calling your title or closing company at a phone number you already know is real. Never use a number from an email.

Step 7: After Closing, File for Homestead

If the home is your permanent residence, apply for Florida’s homestead exemption with your county property appraiser. You must own the home and make it your permanent residence as of January 1, and the application is due by March 1 of that year.

• The exemption. Homestead removes up to $25,000 of assessed value from all property taxes, plus an additional exemption of up to $25,000 (now adjusted for inflation) on assessed value above $50,000 for non-school taxes.
• Save Our Homes. Once your home has the exemption, increases in its assessed value are capped each year at 3% or the change in the Consumer Price Index, whichever is lower.
• On the ballot. Florida voters will decide Amendment 3 on November 3, 2026. If approved, it would change homestead exemption amounts starting in 2027. Check with your county property appraiser for the rules that apply when you file.

Ready When You Are

Your first home is a big step, and you don’t have to figure it out alone. We’ll help you set a realistic budget, connect with lenders, understand Florida-specific disclosures, and negotiate with confidence.