First-Time Buyer Guide | South Florida Home Guide

3.5%

Minimum FHA down payment

$10,000

Max FL Assist down payment help

620+

Minimum credit score target

30–45

Days from offer to closing

Here's what to expect, step by step

Buying your first home doesn't have to be scary. Here's exactly what happens at each stage — with real numbers and Florida-specific details so you're not caught off guard.

Check Your Credit & Budget

Pull your free credit report from AnnualCreditReport.com and check for errors
Aim for a credit score of 620+ for conventional loans, 580+ for FHA
Use the 28/36 rule: your mortgage payment should be under 28% of gross monthly income, total debt under 36%
Don't open new credit accounts or make large purchases before buying

Get Pre-Approved

A pre-approval letter shows sellers you're a serious buyer
Shop 2-3 lenders to compare rates — even 0.25% makes a big difference over 30 years
In Florida, expect to need 3-5% for a down payment on conventional, or 3.5% for FHA
Budget an additional 2-5% for closing costs on top of your down payment

Explore Down Payment Assistance

Florida Housing Finance Corporation (FHFC / HFA) offers down payment and closing cost assistance
SALUTE Program: for teachers, law enforcement, firefighters, healthcare workers, and military
Florida Assist (FL Assist): up to $10,000 in down payment/closing cost help (deferred second mortgage)
HFA Preferred and HFA Advantage loans offer reduced mortgage insurance costs
Income limits apply — in Palm Beach County, many programs are available up to ~$100K+ household income

Find Your Neighborhood

Start with what matters most: commute, schools, lifestyle, and budget
In South Florida, $250K-$400K opens up townhomes and condos in most areas, single-family in Boynton Beach and parts of Delray
$400K-$600K gets you into single-family homes in most communities
Visit neighborhoods at different times of day — traffic, noise, and parking change a lot

Make an Offer & Negotiate

Your agent will help you craft an offer based on comparable sales, not asking price
In Florida, offers include an "as-is" or inspection contingency — almost always use one
Earnest money deposit is typically 1-2% of the purchase price
Don't be afraid to negotiate — inspection findings are leverage

Inspection, Appraisal & Closing

Home inspection costs $300-$500 in South Florida — don't skip it
Wind mitigation and 4-point inspections can save you hundreds on insurance
The appraisal protects you from overpaying; the lender orders it
Closing takes 30-45 days; you'll sign paperwork and get your keys at the end

Florida programs that can actually help you

Good news: Florida has some of the best first-time buyer programs in the country. Here are the ones worth knowing about:

Florida Housing HFA Preferred

Through the Florida Housing Finance Corporation (FHFC), HFA Preferred loans offer reduced mortgage insurance costs and can be combined with down payment assistance. These are 30-year fixed-rate conventional loans with competitive rates. Income limits apply — in Palm Beach County, households earning up to ~$109,000 may qualify (check current limits as they change yearly).

FL Assist Down Payment Program

Provides up to $10,000 as a deferred second mortgage for down payment and closing costs. You don't make monthly payments — the loan is due when you sell, refinance, transfer the deed, or finish paying off your first mortgage. This can be combined with HFA Preferred or other qualifying first mortgage programs.

SALUTE Program

Specifically for teachers, law enforcement officers, firefighters, healthcare workers, and military/veterans. The SALUTE program offers special rate discounts on Florida Housing first mortgage loans. If you or your spouse work in one of these fields, this can save you real money over the life of your loan.

Mortgage Credit Certificate (MCC)

An MCC lets you claim a tax credit of up to 50% of your annual mortgage interest (up to $2,000 per year). This is a dollar-for-dollar reduction in your federal tax bill — not just a deduction. It can be combined with other Florida Housing programs. The credit can be carried forward if it exceeds your tax liability.

Okay, but what can you actually afford?

Let's look at the real monthly costs at different price points in Palm Beach County. These assume a 5% down payment and current rates around 6.5%–7%:

Home Price	Down Payment (5%)	Est. Monthly Payment*	Typical Areas
$250,000	$12,500	~$1,850/mo	Townhomes in Boynton Beach, condos in Delray
$350,000	$17,500	~$2,500/mo	Townhomes/condos in Boca, single-family in Boynton
$450,000	$22,500	~$3,150/mo	Single-family in most areas, condos near beach
$575,000	$28,750	~$3,950/mo	Move-up homes in Delray, Boca communities

*Estimated payment includes principal, interest, property taxes (~1.1% in Palm Beach County), and homeowner's insurance. Does not include HOA fees, which range from $200–$800/month in South Florida depending on the community.

Your first home: everything you need to know