Negotiate
Seller concessions
Ask the seller to cover eligible closing costs in the purchase contract. Limits depend on your loan type and down payment.
Often the first option to explore
Understand how much you may need upfront, which loan programs could fit, and what to expect from pre-approval through closing.
Not 20%. That number is the single most expensive myth in real estate — it keeps people renting for years while they save for something no loan program requires.
Twenty percent isn't a requirement. It's the threshold where mortgage insurance stops being charged on a conventional loan. Those are very different things, and confusing them costs first-time buyers more than almost any other mistake on this page.
Here's what each loan type actually asks for, with the real dollar figure on a $400,000 purchase.
| Loan type | Minimum down | On $400,000 | Min credit score | Who it fits |
|---|---|---|---|---|
| Conventional 97 | 3% | $12,000 | 620 | Decent credit, want mortgage insurance to eventually go away |
| FHA | 3.5% | $14,000 | 580 | Thinner credit file, past credit events, higher debt load |
| FHA (lower score) | 10% | $40,000 | 500 | Scores between 500 and 579 |
| VA | 0% | $0 | Varies | Veterans, active duty, some surviving spouses |
| USDA | 0% | $0 | 640 | Eligible rural and semi-rural areas, income caps apply |
| Conventional (no MI) | 20% | $80,000 | 620 | Buyers who already have the cash and want no mortgage insurance |
Conventional loans top out at $832,750 in most counties, with high-cost areas up to $1,249,125. FHA's floor is $541,287, with the same $1,249,125 ceiling. Above those, you're in jumbo territory with different rules.
On most programs your entire down payment can be a gift from a relative. It needs a gift letter and a documented paper trail showing where the money came from — but "my parents are helping" is not a problem, it's routine.
Saving from 3% to 20% on a $400,000 home means another $68,000. At a realistic savings rate that's years — years of rent paid, and years of price movement you don't control. Sometimes waiting is right. Run the numbers rather than assuming.
Mortgage insurance protects the lender, not you. You pay it because you're putting less than 20% down. The critical difference between conventional and FHA isn't the cost — it's whether it ever ends.
| Conventional (PMI) | FHA (MIP) | |
|---|---|---|
| Upfront premium | None | 1.75% of loan amount |
| Annual premium | ~0.3% – 1.5% | ~0.55% typical |
| Priced on credit score | Yes — heavily | No |
| Can you cancel it? | Yes, at 20% equity by request | Only if you put 10%+ down |
| Automatic termination | At 78% loan-to-value | After 11 years, if 10%+ down |
| If you put under 10% down | Still cancellable at 20% equity | Stays for the life of the loan |
FHA's upfront 1.75% on a $300,000 loan is $5,250, normally financed into the balance so it isn't cash at closing. The annual premium at about 0.55% adds roughly $140 per month. Conventional PMI varies far more, because it's priced on your credit score — which is exactly why the credit section below matters.
Life-of-loan MIP sounds permanent, but it isn't a life sentence. Buyers who use FHA to get in with a lower score often refinance into a conventional loan once their score recovers and they hit 20% equity, dropping mortgage insurance entirely. Plan for it at application rather than discovering it in year five.
Closing costs generally run 2% to 5% of the purchase price for a Florida buyer — separate from your down payment. On a $400,000 home, that's roughly $8,000 to $20,000.
| Cost | Typical range | What it is |
|---|---|---|
| Appraisal | $500 – $800 | Independent valuation your lender orders |
| Credit report & verifications | $75 – $200 | Pulling and verifying your file |
| Lender fees | Varies | Origination, underwriting, processing — ask every lender to itemize these |
| Title insurance | Promulgated | Florida sets title premium rates by statute; the settlement fee on top is not fixed |
| Settlement / closing fee | $400 – $900 | Charged by the title or closing agent |
| Doc stamps on the note | $0.35 per $100 | Florida state tax on the promissory note |
| Intangible tax | 0.2% of loan | Florida tax on the mortgage — $776 on a $388,000 loan |
| Survey | $300 – $600 | Often required; confirms boundaries and encroachments |
| Recording fees | $100 – $300 | County recording of the deed and mortgage |
| Prepaid insurance | Varies widely | First year of homeowners insurance — in Florida this is often the largest single line |
| Escrow reserves | 2 – 6 months | Cushion for taxes and insurance held by your servicer |
| Prepaid interest | Varies | Interest from your closing date to the end of that month |
Smart ways to reduce what you may pay upfront — depending on your loan, contract, and eligibility.
Ask the seller to cover eligible closing costs in the purchase contract. Limits depend on your loan type and down payment.
A lender may cover certain costs in exchange for a higher interest rate. Compare the upfront savings with the long-term cost.
Eligible Florida programs may help with your down payment and closing costs.
When Beycome represents you, a portion of the brokerage compensation may be credited toward eligible costs at closing.
The buyer rebate comes from Beycome's buyer-representation program — not from your loan. It is not conditioned on using Beycome Mortgage or Beycome Title. Eligibility, amount, lender limits, transaction terms, and applicable law may affect the credit.
Affiliated Business Arrangement Disclosure →Premiums vary by county, roof age, and coastal exposure. Get quotes before your inspection period expires.
*Subject to available brokerage compensation, transaction eligibility, lender and loan-program limits, available closing costs, and applicable law. Not available in every transaction.
Most people think of credit as a yes-or-no gate. It isn't. It sets your interest rate and your mortgage insurance premium, which means the gap between 660 and 740 shows up in your payment every month for thirty years.
| Score band | What opens up | Effect on cost |
|---|---|---|
| 740+ | Every program, best conventional pricing | Lowest rate tier and lowest PMI |
| 700 – 739 | Conventional and government loans | Slightly higher rate and PMI than the top tier |
| 660 – 699 | Conventional works; FHA often prices better | PMI starts climbing noticeably |
| 620 – 659 | Conventional minimum met; FHA usually the better fit | Conventional PMI becomes expensive here |
| 580 – 619 | FHA at 3.5% down | FHA MIP isn't score-priced, which is the advantage |
| 500 – 579 | FHA at 10% down | Limited lender appetite; expect overlays |
Pre-qualification uses a soft pull with no score impact. Once you formally apply, all mortgage inquiries inside a 45-day window count as one under current FICO models. You can compare lenders freely — you just shouldn't spread it across three months.
Paying a card from 80% of its limit down to under 30% can move a score in one reporting cycle. That's usually faster than any other action available to you, and it's why we look at your specific accounts before recommending anything.
An old card with no balance is helping you — it's carrying your average account age and your available credit. Closing it usually drops your score. So does opening anything new while you're in process.
Gather these before you apply and pre-approval usually takes a day instead of a week. Tick them off as you go.
Every one of these is something we watch happen regularly. All nine are avoidable.
The most expensive mistake on this list. You spend years renting to avoid a mortgage insurance premium that often runs a couple hundred dollars a month and can be cancelled later.
Instead: price out 3% down with PMI against your rent and your savings timeline, then decide.
You fall for something outside your range, or you lose a home because a pre-approved buyer moved faster. Sellers in competitive markets often won't even schedule a showing without a letter.
Instead: get pre-approved first. It takes a day and costs nothing.
Financing furniture, taking the store card for the discount, or leasing a car between application and closing can retrigger underwriting and sink an approved loan days before closing.
Instead: open nothing and finance nothing until you have the keys.
People plan carefully for the down payment and get blindsided by closing costs, prepaid insurance and escrow reserves. In Florida the first-year insurance premium alone can be thousands.
Instead: budget down payment plus 2–5% for closing, and get an insurance quote early.
Transferring between accounts, depositing cash, or getting an undocumented gift creates deposits underwriting has to source. Unsourceable money can't be used, even though it's genuinely yours.
Instead: leave your accounts alone, and tell your loan officer before any unusual deposit.
Rates and fees vary meaningfully between lenders on the same borrower profile. Not shopping can cost thousands over the loan, and inquiries inside 45 days count as one anyway.
Instead: get Loan Estimates from a few lenders and compare page two, line by line.
In a competitive market people waive inspections to look stronger. It's the single riskiest thing a first-time buyer can do — you're accepting an unknown roof, unknown plumbing and unknown structural condition.
Instead: shorten the inspection period or cap your repair requests rather than waiving it outright.
Even a promotion can pause a file. Lenders verify employment again right before closing, and a switch — especially to self-employment or commission — can require restarting the income analysis.
Instead: if a change is coming, tell your loan officer before you accept it, not after.
Florida buyers routinely leave $10,000 to $35,000 on the table because nobody mentioned the programs, or because they assumed they earned too much. Income caps are more generous than most people expect.
Instead: ask about state, county and city programs before you write an offer.
Florida Housing's flagship program for frontline workers — healthcare, school staff, first responders, childcare, active duty and veterans, among 50+ eligible occupations. It provides 5% of the first mortgage amount, with a $10,000 minimum and $35,000 maximum, as a 0% interest deferred second mortgage with no monthly payment.
Worth knowing: it is deferred, not forgiven — the balance is due when you sell, refinance or move out. Income caps run to 150% of area median income, a homebuyer education course is required, and you can use a Florida Housing program only once. Funding is appropriated in rounds and is first come, first served, so availability changes through the year. Ask us to check current status before you plan around it.
Miami-Dade, Broward, Palm Beach, Hillsborough, Orange and many smaller jurisdictions run their own assistance programs, often with different income limits and occasionally with forgivable rather than deferred structures.
These are frequently under-subscribed simply because buyers don't know they exist. Layering rules vary — some can sit on top of a state program, some can't — and that's a question to ask before you're under contract, not after.
Answer a few quick questions to connect with a licensed loan officer. There's no hard credit inquiry, no obligation, and no lengthy application required.
Prefer to talk first? Call (786) 952-7143 or schedule a 15-minute call.
Soft credit check only. This does not affect your credit score.
Conventional loans for first-time buyers start at 3% down and FHA at 3.5%. VA and USDA require nothing down if you qualify. On a $400,000 home that's $12,000 or $14,000 — not $80,000. Twenty percent has never been a requirement; it's just the point where conventional mortgage insurance stops.
FHA goes down to 580 with 3.5% down, or 500 with 10% down. Most conventional loans need 620. But approval is only half of it — your score also sets your rate and your mortgage insurance premium, so improving it before you apply can be worth real money each month.
Conventional PMI generally runs about 0.3% to 1.5% of the loan per year and is priced heavily on your credit score. FHA charges 1.75% upfront (usually financed into the loan) plus roughly 0.55% annually. The bigger difference is duration: conventional PMI cancels at 20% equity, while FHA's annual premium stays for the life of the loan if you put less than 10% down.
Budget 2% to 5% of the purchase price on top of your down payment. That covers lender fees, appraisal, title and settlement, Florida's documentary stamp tax on the note and intangible tax on the mortgage, survey, recording, and prepaid taxes and insurance. In Florida the first year of homeowners insurance is often the largest single line — get a quote before you go under contract.
No. Pre-qualification uses a soft pull with no score impact. After you formally apply, mortgage inquiries within a 45-day window count as a single inquiry under current FICO models, so comparing lenders doesn't compound the damage.
Often the same business day if you apply during business hours and have your documents ready — which is exactly what the checklist above is for. Pre-approval involves a credit review plus income and asset documentation. Anything faster is a pre-qualification, which sellers take far less seriously.
Yes, on most programs the entire down payment can be gifted by a relative. You'll need a gift letter and documentation showing the donor's funds and the transfer. This is completely routine — just don't let the money land in your account without telling your loan officer first.
Many "first-time buyer" programs define it as not having owned a primary residence in the previous three years, so previous ownership doesn't automatically disqualify you. Worth checking rather than assuming.
A licensed loan officer will walk through what you qualify for, what your payment looks like, and which assistance programs apply — with no obligation and no hard credit pull.
Apply NowOr call (786) 952-7143