Buying a Home in Florida with No Money Down

It is possible to buy a home in Florida with no money down. Why would you want to do this? Perhaps renting is expensive and you'd prefer to buy, but you don't have the funds already saved. Furthermore, if the market is on the rise, waiting to buy may result in a much higher purchase price than if you buy now. An improving market also provides opportunity to quickly build equity, in place of a down payment. If you are interested in buying a home in Florida with no money down, here are a few ways that you can do so.

VA Financing

If you are a veteran, you may be eligible for a VA mortgage. They offer 100% financing. This would leave you with only closing costs to pay. VA mortgages do allow for seller concessions, so you could ask a seller to pay a certain amount towards your closing costs, points, and pre-paids. This would take place as part of your up-front price negotiations and would minimize the cash needed to close.

It's important to understand how this may impact your negotiating strength. In multiple offer scenarios, it could put you at a disadvantage. However, under the right circumstances and if positioned properly, it could work very well. Speak to your real estate agent about this further, as all markets vary.

USDA Loans

Did you know that the US Department of Agriculture insures loans? These loans are available in certain rural or suburban areas. They feature great benefits such as no down payment, allowed seller concessions, and even the ability to roll in closing costs or home repairs. There are income limits and other eligibility requirements. Visit the USDA website to check whether this loan is offered in your area.

Conventional Loans

During the market crash, 100% financing was no longer offered. However, they have returned now that the market has strengthened again. Speak to your lender about no down payment mortgage options. As with many conventional programs, your credit score and income-to-debt ratio must meet certain benchmarks. The qualification process may be a bit stricter as well. 

More on Buying a Home in Florida with No Money Down

Above are the most common ways of buying a home in Florida with no money down. A couple of other resources worth mentioning are your local credit union and first time home buyer programs. Credit unions sometimes offer specialized programs for loans that they intend to keep in-house rather than selling to the secondary mortgage market. First time home buyer programs may assist with down payments (as either a loan or grant). Contact your lender and speak to a local Florida real estate agent for more information about these and other options. If buying a home in Florida with no money down allows you to take advantage of market conditions before prices get too high, then it can certainly be worthwhile.

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