Down Payments & PMI: What Florida Buyers Should Know
You do not always need a 20% down payment to buy a home. Your required down payment and mortgage insurance depend on the loan program, property and your eligibility. Compare both upfront costs and the ongoing payment before choosing a loan.
How Much Should You Put Down?
A larger down payment reduces the amount you borrow, but it also leaves less cash available for closing costs, moving, repairs and emergencies. Some conventional programs offer low down payments, while eligible VA and USDA borrowers may have no-down-payment options. FHA has its own down payment and mortgage insurance requirements.
What Is Private Mortgage Insurance?
PMI protects the lender, not the borrower. It is generally required on conventional loans with less than 20% down. Its cost depends on factors including the loan, credit profile and insurance arrangement. PMI may be paid monthly, upfront or through another structure.
FHA mortgage insurance and USDA guarantee fees follow different rules. VA loans do not require PMI, although a funding fee may apply. Ask for a comparison of the full costs of each eligible program.
When Can PMI Be Removed?
For many conventional loans covered by federal PMI cancellation rules, you can request cancellation when the balance reaches 80% of the home's original value, subject to conditions. Automatic termination generally occurs at the scheduled 78% point if payments are current. A rise in market value does not automatically remove PMI; ask your servicer about its requirements.
Read the CFPB's PMI Cancellation Guidance ↗
Where Can Your Down Payment Come From?
Depending on program rules, eligible sources may include savings, proceeds from selling a property, documented gifts and approved assistance. Gifts and loans are different: disclose borrowed funds and confirm eligibility before accepting or transferring money.
Assistance programs may have income, location, occupancy and education requirements. Some assistance must be repaid, and funding can change. Your down payment is only part of your cash-to-close; account for closing costs, prepaid expenses and initial escrow deposits.
Tools & Resources
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Compare Your Down Payment Options
Ask Gemma Peterson about the balance between upfront cash, monthly payments and reserves.
Ask Gemma About Your OptionsEducational information only; not an approval or commitment to lend. Program availability, costs and eligibility vary. FHL Mortgages is a DBA and mortgage department of Florida Homes & Loans Inc. | NMLS #2295908. Gemma Peterson | NMLS #2121526. Request secure upload instructions before sharing financial documents.