How Much Money Do You Really Need Upfront to Buy a Home Today?

One of the biggest myths in real estate is that buyers need 20% down to purchase a home. That belief alone stops countless people from moving forward — even when they’re financially ready.

Here’s the truth about what you actually need upfront when buying a home in today’s Central Florida market.

Down Payment Options Have More Flexibility Than Ever

Depending on the loan program, your down payment could be:

• 0% with VA or USDA

• 3%–5% for conventional loans

• 3.5% for FHA loans

• 10–20% only if you choose it

The idea that 20% is required is outdated for most buyers.

Closing Costs: The Costs Buyers Forget to Budget For

In addition to the down payment, you’ll need funds for:

• Appraisal

• Inspection

• Origination fees

• Title and escrow

• Prepaid taxes and insurance

In Central Florida, these typically run 3–4% of the purchase price.
The good news? Some of these can be negotiated through seller concessions or lender credits.

Total Upfront Costs — A Realistic Example

For a $400,000 home, a buyer might need:

• $12,000 down (3% conventional)

• $12,000 closing costs (approx. 3%)

Total: $24,000 — far less than the $80,000 a 20% down myth suggests.

There Are Assistance Programs, Too

Florida offers multiple programs that provide down payment or closing cost support to qualified buyers. These can reduce upfront costs dramatically.

You Don’t Need Perfect Finances — Just Prepared Ones

A consultation with a lender can map out your true numbers, often with pleasant surprises.