How Much Do You Really Need for a Down Payment in Florida?

by Scott Swonger P.A.

A down payment is when you pay a fraction of the cost of a home upfront and then take out a loan to cover the rest. If you’re thinking about buying a home in Venice, FL, or the Sarasota area, you might be wondering: Do I really need 20% down?

The truth is — that’s a myth.

You Don’t Have to Put 20% Down on a House in Florida

A common misconception is that 20% is the standard down payment for buying a home in Florida. That’s simply not the case.

Depending on your mortgage program and your situation as a buyer, you could qualify for a down payment as low as 3%–3.5%. And if you’re using a VA loan or USDA loan, you may be able to purchase a home with zero down payment.

Florida first-time homebuyers often have more options for low down payment programs, but there are also grants and assistance programs available for repeat buyers.

A Smaller Down Payment Means Higher Monthly Costs

Putting less money down upfront makes homeownership more accessible, but it does increase your monthly expenses. Here’s why:

You’re borrowing more.
For example, if you put 5% down on a $400,000 Venice home, you’re financing 95% of the purchase price. With 20% down, you’d only be financing 80%.
You’ll likely pay mortgage insurance.
With less than 20% down, most lenders require private mortgage insurance (PMI). On average, PMI costs about 0.4% of the loan amount annually. For a $400,000 loan, that’s about $1,600 per year, or roughly $133 per month.

👉 Tip: When shopping for homes in Sarasota County, factor PMI into your monthly housing budget.

Can You Use Gifted Money for a Down Payment?

Yes — many Florida homebuyers receive help from family or friends. But lenders have rules:

The money must come from an approved source (such as close family, a spouse, or in some cases, an employer).
It must be a true gift, not a loan you have to repay.
You’ll need a gift letter for documentation.

If the funds have been in your account for a while (like wedding gifts received years ago), they’re usually easier to document.

Florida Down Payment Assistance Programs

If saving for a down payment feels overwhelming, you may qualify for Florida down payment assistance programs.

These programs are often local or state-based and can include:

Grants for first-time homebuyers
Forgivable second mortgages
Closing cost assistance

For example, programs like the Florida Hometown Heroes Program help qualifying buyers with down payment and closing costs.

⚠️ Be cautious, though — some assistance programs come with higher interest rates or added fees. Always review the terms carefully with your lender.

Choosing the Right Down Payment for Your Budget

While putting 20% down saves you money in the long run, it isn’t always the best option for your financial situation.

Don’t empty your emergency savings just to make a bigger down payment.
Budget for repairs, furniture, and moving costs — all part of homeownership.
Aim to keep your mortgage payment around 25% or less of your take-home pay.

The best down payment is one that balances affordability today with financial stability tomorrow.

Final Thoughts: Buying a Home in Venice or Sarasota, FL

Your ideal down payment depends on your goals, budget, and the programs you qualify for. Whether you’re putting down 3%, 10%, or 20%, the most important thing is making an informed decision.

As a local realtor in Venice, Florida, I guide buyers through every step of the process — from exploring down payment options to finding the right lender and the perfect home.

📞 941-600-3534
📧 sellingvenice@gmail.com

If you’re ready to explore Venice Florida homes for sale or want to learn more about first-time homebuyer programs in Sarasota County, let’s connect today!