Most Florida buyers finance their purchase with one of five loan types. Each has its own down payment, credit, and property-use rules — and the difference between choosing the right one and the wrong one can be tens of thousands of dollars over the life of the loan.
The five main financing paths
Conventional
The most common loan. Backed by Fannie Mae or Freddie Mac. Requires PMI under 20% down, but PMI drops off automatically at 78% loan-to-value.
FHA
Insured by the Federal Housing Administration. Credit scores as low as 580. Mortgage insurance is required for the life of the loan on most FHA mortgages.
VA
Available to eligible active-duty military, veterans, and surviving spouses. No PMI. Competitive rates. A big deal in Florida given the state's large veteran population.
USDA
Backed by the U.S. Department of Agriculture for rural and select suburban zones. Income caps apply. Parts of Manatee, Sarasota, and Hillsborough counties qualify.
Jumbo
Required when your loan exceeds the conforming limit ($766,550 in most FL counties for 2025). Stricter credit and reserve requirements — 700+ credit is typical.
Non-QM / DSCR
For self-employed buyers or investors. Bank-statement loans and Debt Service Coverage Ratio loans qualify you off property income rather than personal W-2s.
Rates & qualifying benchmarks
As of mid-2026, primary-residence 30-year fixed rates are running 6.5% – 6.75%. Second home rates typically add 0.50%. Investment property rates add 0.75% – 1.00%. See how this impacts your total cost in the primary vs. second home guide.
A pre-qualification is a soft, verbal estimate. A pre-approval is a documented commitment based on verified income, credit, and assets. In Florida's competitive markets, sellers won't take your offer seriously without a real pre-approval letter — and it usually needs to be dated within 30 days.
What lenders look at
- Credit score: 620+ for conventional, 580+ for FHA. Best rates start at 740+.
- Debt-to-income ratio (DTI): 43% – 45% max for most conventional loans. FHA allows up to 50% with compensating factors.
- Reserves: 2 – 6 months of mortgage payments in liquid savings. Jumbo and second-home loans require more.
- Employment history: 2 years, ideally in the same field. Self-employed borrowers need 2 years of tax returns.
Florida-specific down payment help
Florida Housing runs several programs worth exploring — especially for first-time buyers and essential workers:
- Florida Assist (FL Assist): Up to $10,000 in 0% deferred second-mortgage down payment assistance. Details at Florida Housing.
- Hometown Heroes Program: Up to 5% of the loan (capped at $35,000) for teachers, first responders, nurses, and other frontline workers.
- Local county programs: Manatee, Hillsborough, and Sarasota counties each run first-time buyer grants.
What comes next
Once you know how you'll finance the home, the next big decisions are what kind of home to buy and where. Two chapters worth reading next:
- The primary residence vs. second home chapter shows how your intended use changes rates, down payments, and taxes.
- The Florida insurance chapter covers how homeowners premiums affect your monthly mortgage payment through escrow.
