How To Buy a House With No Money in Florida in 2023
Homeownership is no longer a financially draining venture. With the emergence of various credit options, buying your dream home in Florida is now much more accessible than ever. Better still, these home loans have favorable terms with flexible eligibility requirements even if you have no credit history.
Table of Contents
- How to Buy a House with No Money Down
- Florida Down Payment Assistance Programs
- No Money Down USDA Loans
- No Money Down VA Loans
- Conventional Mortgage-97 for First Time Homebuyers
- HomeReady Mortgage Program
- HomePossible Mortgage Program
- FHA Loans for Low Credit Score
- Conventional Loans with 3 Percent Down
- Frequently Asked Questions
How to Buy a House in Florida with No Money Down?
Why rent when you can buy a house in Florida with no money down? Buying your dream home has never been easier. After all, you don’t need a substantial down payment to grab the keys to your new residence.
Compiled data from the National Association of Realtors (NAR) shows that first-time homebuyers have paid an average of 7% down since 1989.
Repeat buyers have averaged between 13% and 23% over the same period. These stats suggest that first-time buyers have a better chance of buying a house with little or no down payment.
The best part is that you can select a mortgage loan with no closing costs. Closing costs refer to the fee you or the seller pay when closing a real estate transaction.
It comprises 3-6% of the total loan amount. If you select a home loan with no closing costs, your interest rate will increase, but you will remain with more money available.
You can also buy a house in your favorite Florida neighborhood with no money by using down payment assistance programs.
Various non-profit organizations and federal and state agencies provide down payment and closing costs assistance in grants and 0% interest loans to first-time homebuyers.
One popular down payment assistance program is the Hometown Heroes Program for eligible community workers.
Here’s a recap of how you can buy a house in Florida with no money down:
- No down payment home loans.
- Mortgage loans with no closing costs.
- Down payment assistance programs.
Down Payment Assistance Programs in Florida
Many lenders demand close to 20% as a down payment to secure a conventional mortgage loan. However, raising this amount can be challenging, especially for first-time homebuyers.
And if you find a lower down payment, it will probably come with higher interest rates and insurance premiums. Here’s where down payment assistance programs come into play.
Down payment assistance (DPA) is a financial program that makes homeownership more affordable for first-time buyers.
It covers the down payment and, sometimes, the closing costs, making it easy for you to become a homeowner. The funds come as grants or 0% interest loans, so you don’t have to struggle to raise the initial amount.
You can apply for down payment assistance if you want to buy a house in Florida with no money. Florida has several DPA programs available to first-time homebuyers. Popular options include the Hometown Heroes Program.
The Florida Hometown Heroes Program is for eligible full-time workforce, employed by a Florida-based employer. It provides financial assistance of up to 5% or $35,000 maximum. You can use the funds to pay your down payment and closing costs. This program also offers a lower first mortgage interest rate and additional special benefits.
Like any credit option, down payment assistance programs have eligibility requirements. Before issuing the loan, the lender might check your credit history, employment status, and current income. If you are a first-time buyer, you may have to go through a mortgage course.
USDA Loans with No Money Down
The United States Department of Agriculture (USDA) runs a home loan program for aspiring homebuyers in rural and semi-rural areas. You can use a USDA loan to purchase a modern house in rural neighborhoods in Florida.
The best part is that this loan has no down payment or credit score requirements, making it one of the most affordable home financing options.
Even though USDA loans do not have credit score requirements, you must prove your creditworthiness. Besides, most lenders will ask for a FICO credit rating of at least 580.
Here’s a breakdown of USDA loan eligibility requirements:
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Be a U.S. citizen or legal permanent resident.
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A debt-to-income ratio not exceeding 50%.
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Prove creditworthiness.
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Have a household income not exceeding 115% of the area’s median income.
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Be the primary residence.
- The house must be in a rural area.
You can use your USDA loan to purchase your existing home or construct a new house. Other eligible properties include manufactured homes, condos, townhouses, and foreclosed homes. However, the property you intend to buy must be a single-family dwelling.
You are responsible for the lender fees, mortgage insurance, and closing costs. However, you can discuss with the seller or lender to cover some expenses through concessions or credits.
VA Home Loans with No Down Payment
A VA loan is a military benefit for eligible active-duty service members, veterans, and their surviving spouses.
This loan helps military personnel become homeowners with no down payment required. You can also use this credit option to build a house or improve your existing property.
Like USDA loans, VA loans are only for primary residences. You cannot use it for vacation homes, investment properties, or a second house.
Before applying for the loan, you must obtain a Certificate of Eligibility (COE). This document highlights your service history and duty status, helping the lender determine whether you qualify for the loan.
VA eligibility requires:
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You served for 90 consecutive days without a break.
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You served actively for 180 days during peacetime.
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You served for at least 24 continuous months during the Gulf War period to present.
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You served for at least 90 days before being discharged because of hardship or a force reduction.
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You served for less than 90 days and discharged because of a service-related disability.
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You were discharged honorably or placed on the retired list.
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You served for more than six creditable years with the National Guard or Reserves.
- You are the surviving spouse of a service member who died in the line of duty.
The U.S. Department of Veterans Affairs guarantees the loan with an entitlement. This guarantee allows lenders to offer loans to eligible borrowers without a down payment. The loan also has lower interest rates and is exempt from underwriting and attorney fees.
Conventional Loan 97 for First-Time Homebuyers in Florida
Conventional mortgages can be expensive with stringent eligibility requirements. However, this is not the case with the Conventional Loan 97 offered by Fannie Mae.
This credit option allows you to buy your dream home in Florida with a 3% down payment. Moreover, you can use grants, gifts, and DPA programs to pay your down payment.
The Conventional Loan 97 is for first-time homebuyers aspiring to buy a primary residence. You cannot use the funds for a second home, investment properties, or short-term rentals.
This FHA loan alternative is more flexible and has fewer upfront costs. The loan has a 30-year fixed rate, and you may or might not pay mortgage insurance.
However, you can only use the Conventional Loan 97 to purchase single-family homes, condominiums, townhomes, and planned developments. Manufactured homes are not eligible, although some may qualify.
HomeReady Mortgages from Fannie Mae
Low-income buyers can apply for HomeReady mortgages from Fannie Mae. This home loan has a 3% down payment requirement, similar to the Conventional Loan 97.
However, borrowers must have a FICO credit score of 620 or higher to qualify. If your credit rating is below 620, you can provide your income data for consideration. Once approved, first-time buyers must undergo a mortgage education course.
Since it has no personal contribution requirements, you can cover the down payment using gifts, grants, and DPA programs.
Mortgage insurance is not compulsory, but borrowers with less than 20% equity must pay insurance premiums. You can cancel the mortgage insurance once you reach 20% equity.
Freddie Mac Home Possible Mortgages
Another mortgage loan with low down payment requirements is the Home Possible loan by Freddie Mac. This mortgage has a minimum 3% down payment and no minimum personal contribution requirements, meaning you can cover the down payment with gifts, grants, and DPA programs.
The only slight issue with Freddie Mac’s Home Possible mortgages is its high credit score requirement. Your FICO score must be 660 or higher to qualify.
Besides, your household income cannot exceed 80% of the area’s median income. You must pay mortgage insurance if your equity is less than 20%. You can only cancel the insurance once you reach 20% equity.
FHA Loans for Florida Buyers with Low Credit Scores
Even with a low credit score, you can still purchase your dream home using an FHA loan. This federally-backed mortgage allows borrowers with less favorable credit ratings to become homeowners.
It has a minimum 3.5% down payment requirement, and you only need a score of 580 or higher to qualify for an FHA loan. Better still, borrowers with credit scores as low as 500 can qualify for an FHA loan. However, you must pay at least a 10% down payment for consideration.
The loan also requires information on your income and employment status. Your debt-to-income ratio should be 43% or lower, but compensating factors might come into play if you have a higher DTI.
Conventional Loans with 3 Percent Down
Conventional loans can be cheap or expensive, depending on the lender. Some lenders might accept a minimum 3% down payment, while others may demand a higher amount, depending on your creditworthiness.
Since these mortgages do not have federal backing, eligibility requirements can be somewhat stringent. Your credit score should not be less than 620 points, and you must pay mortgage insurance if your down payment is below 20% of the purchase price. Interest rates also vary, but loan limits follow FHFA guidelines.
Frequently Asked Questions
Buying a home protects you from unexpected rent increases and financial insecurities. It can help you build more equity and safeguard your financial future.
The best part is that you can buy a house in Florida with no money down. You only need to shop for the best loan options and get pre-approved.
What credit score do I need to buy a house in Florida?
The minimum credit score required to buy a house in Florida varies by lender and loan type. Some lenders may require a score as low as 500, while others demand a stellar rating of 620 or higher.
Some loans, such as VA and USDA, do not have minimum credit score requirements, making them suitable for homebuyers with a less favorable credit history.
Are there no down payment loans available to buy a home in Florida?
First-time homebuyers can benefit from various no down payment mortgages, such as VA and USDA loans. These home loans allow you to purchase a house without paying upfront costs.
Even if you don’t qualify for one, you can get various credit options with low down payment and apply for down payment assistance programs. Some loans allow you to cover the down payment using grants and gifts.
How can I save money for a down payment?
You can start saving money for a down payment by creating a budget and a savings plan. First, shop for various loans you qualify for and learn about down payment requirements.
Calculate your income and expenditure to determine where your money goes, then decide how much you want to save towards your goal.
Since saving for a down payment can be challenging, consider applying for down payment assistance programs in your area.
Is private mortgage insurance (PMI) bad?
Lenders require Private Mortgage Insurance to protect themselves from the financial implications if a borrower defaults. It allows lenders to offer low down payment loans.
For this reason, PMI is neither bad nor good. Besides, some loans do not require mortgage insurance. You can cancel at any time once your reach 20% equity.
Final Thoughts
Buying a home has never been easier. If you are an aspiring first-time homebuyer, you can benefit greatly from no down payment home loans.
This financing option has favorable terms, eliminating major hurdles of becoming a homeowner. You don’t have to pay the 20% down demanded by traditional mortgages to buy your dream home in Florida.
Besides, you only require a credit score of 580 or even lower. You only need to consult a credible lender to determine which loans you qualify for and get pre-approved as you embark on your homeownership journey.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.

About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.