Typical ranges
Some programs allow a low down payment for a primary residence, while second homes and investment properties usually require more. Foreign buyers and non-warrantable condos often need larger down payments, commonly in the range lenders publish for their products.
Rules change, so ask a loan officer for current requirements for your exact situation.
Mortgage insurance
With a smaller down payment, lenders usually require private mortgage insurance or an equivalent premium, which adds to the monthly cost until the loan balance falls to a threshold. A larger down payment can remove it.
Compare offers by the total monthly payment including insurance, taxes and fees.
Cash needed at closing
Besides the down payment, plan for closing costs, prepaid taxes and insurance, inspection and appraisal fees, and reserves that lenders may require. These can add a meaningful percentage of the price.
Ask the lender for a loan estimate that lists all costs before you choose.
Source of funds
Lenders and title companies check where the down payment came from. Gifts, sales of assets and international transfers need documents, so keep statements and records, and avoid unexplained deposits.
For foreign funds, ask how long the transfer takes and which paperwork is needed.
How it affects the rate
A larger down payment usually lowers the lender's risk and can lower the rate or fees. It also lowers the loan amount and the interest you pay over time, but ties up more cash.
Balance the benefit against your need to keep reserves for repairs, insurance deductibles and emergencies.
Assistance programs
Florida and local programs sometimes offer help with down payment and closing costs for eligible buyers, with income and price limits and occupancy rules. Check the Florida Housing Finance Corporation and county programs.
These programs have application windows, so start early.
Common mistakes
Planning only the down payment, spending reserves, moving large sums at the last minute, forgetting inspection and insurance costs and not comparing loan programs.
Another mistake is using the minimum down payment without checking the effect on the monthly payment.
Checklist
Set your target monthly payment. Ask a lender for a written estimate with different down payments. Gather statements for the source of funds. Add closing costs and reserves. Compare programs and assistance options before you choose.
Next step
We can introduce you to lenders familiar with foreign and Russian-speaking buyers and help you compare their estimates. Lidiya Tretyak is a licensed Florida real estate agent with Douglas Elliman and speaks English, Russian and Ukrainian; the first consultation is free.
This guide is general information, not legal or tax advice. Laws and programs change — confirm details with a Florida attorney and a US tax professional.
