Mortgage knowledge, no jargon attached.

Start with your credit score

Most loan programs in Florida require a minimum credit score between 580 and 620. FHA loans accept scores as low as 580 with 3.5% down, while conventional loans typically need 620 or higher for the best rates. Check your score at least 6 months before you plan to buy so you have time to dispute errors or pay down balances.

Save for more than just the down payment

Beyond the down payment (which can be as low as 0% for VA or 3% for conventional), budget for closing costs (typically 2–5% of the purchase price in Miami-Dade), home inspection ($400–$600), appraisal ($500–$700), and at least two months of reserves in your bank account. Lenders want to see that you can still pay your bills after closing.

Documents you will need

Gather these before you apply: last two years of W-2s or tax returns, last 30 days of pay stubs, last 60 days of bank statements (all pages, even blank ones), a valid government-issued ID, and your Social Security number. Self-employed borrowers should also have profit-and-loss statements and 12–24 months of business bank statements ready.

Get pre-approved early

In Miami's competitive market, sellers and listing agents take pre-approved buyers more seriously. A pre-approval letter shows you have verified income, assets, and credit — it is not the same as a pre-qualification (which is just an estimate). Most pre-approvals take 24–48 hours once your documents are submitted.

Down-payment assistance in Florida

Florida offers several programs for first-time buyers, including the Florida Hometown Heroes program (up to 5% of the loan amount for down payment and closing costs) and county-specific grants in Miami-Dade. These programs have income limits and eligibility requirements, but they can save you thousands at closing.

The basics

FHA loans are insured by the Federal Housing Administration and designed for borrowers with lower credit scores or smaller down payments. Conventional loans are not government-backed and typically offer better long-term value for borrowers with stronger credit profiles. Both are available in Miami-Dade, Broward, and Palm Beach counties.

Credit score requirements

FHA accepts credit scores as low as 580 with 3.5% down (or 500 with 10% down). Conventional loans generally require 620 or higher, with the best rates reserved for 740+ scores. If your credit is between 580 and 640, FHA is usually the more accessible path.

Down payment comparison

FHA minimum: 3.5%. Conventional minimum: 3% (with programs like HomeReady or Home Possible). The difference is small, but FHA is more forgiving on where the money comes from — gift funds from family are easier to document on FHA.

Mortgage insurance: the real cost difference

This is where the two programs diverge most. FHA charges an upfront mortgage insurance premium (1.75% of the loan, rolled into the balance) plus annual MIP for the life of the loan if you put less than 10% down. Conventional PMI can be canceled once you reach 20% equity — which means your payment drops over time. For buyers who plan to stay 5+ years, conventional often costs less overall.

Which should you choose?

Choose FHA if your credit is below 680, you have limited savings, or you need flexible income documentation. Choose conventional if your credit is 700+, you can put 5–20% down, and you want to eliminate mortgage insurance eventually. In many cases, I run both scenarios side-by-side and show you the 5-year and 10-year total cost — the right answer depends on your specific numbers.

What are closing costs?

Closing costs are the fees and charges paid at the end of a real estate transaction — separate from your down payment. In Miami-Dade County, buyers typically pay between 2% and 5% of the purchase price in closing costs. On a $450,000 home, that means $9,000 to $22,500 in addition to your down payment.

Common buyer closing costs in Miami

Lender origination fee (0.5–1% of loan amount), appraisal ($500–$700), credit report ($30–$50), title search and title insurance ($1,500–$3,000), survey ($350–$500), recording fees ($200–$400), prepaid property taxes (2–6 months), prepaid homeowners insurance (12 months upfront), and flood insurance if required. In Miami-Dade, documentary stamps on the deed are typically paid by the seller, but this is negotiable.

Florida-specific costs to know

Florida does not have a state income tax, but it does charge documentary stamp tax ($0.70 per $100 on the deed, paid by seller in Miami-Dade) and intangible tax on the mortgage ($0.002 per dollar of the mortgage amount, paid by the buyer). Title insurance customs also vary by county — in Miami-Dade, the seller typically pays for the owner's title policy, while the buyer pays for the lender's policy.

How to reduce your closing costs

Negotiate seller concessions (the seller can contribute up to 3–6% of the purchase price toward your costs depending on the loan type). Ask your lender about lender credits in exchange for a slightly higher rate. Shop title companies — quotes can vary by $500 or more. Use down-payment assistance programs that also cover closing costs. And always review your Loan Estimate carefully within three days of application — if any fees seem inflated, ask questions.

When are closing costs due?

Closing costs are paid at the closing table (or wired the day before). You will receive a Closing Disclosure at least three business days before closing that shows the exact dollar amount. No surprises — if the number changes significantly from your Loan Estimate, your lender must explain why and you have the right to delay closing to review.