Should a Florida Buyer Put 5%, 10% or 20% Down?
Reviewed by Joseph “Joe” Pistone, NMLS 2087918 · August 27, 2026
Direct answer
There is no universally best percentage. Five percent can preserve liquidity, 10% lowers the loan-to-value ratio, and 20% generally avoids borrower-paid PMI at closing. Compare complete cash to close, monthly cost and post-closing funds for Florida insurance, taxes, association obligations and repairs.
Liquidity-first decision tool
| Path | Potential benefit | Decision question |
|---|---|---|
| 5% | Preserves more cash | What are written PMI and payment figures? |
| 10% | Lower balance and LTV | Does the difference justify extra cash? |
| 20% | Generally avoids borrower-paid PMI | What liquidity remains? |
Three bounded Florida cases
First-time buyer
Compare 5% and 10% while retaining funds for insurance deductibles, moving and initial repairs.
Move-up buyer
Model sale proceeds conservatively and preserve cash if the current-home closing moves.
Condo purchase
Keep room for dues, assessments and project-review conditions instead of focusing on PMI alone.
Compare written options
Request aligned Loan Estimates for each path. Review rate, PMI, points or credits, cash to close and five-year cost; do not assume one structure wins.
Primary sources
- Fannie Mae: Purchase transactions
- Freddie Mac Guide
- CFPB: Loan Estimate
- CFPB: Private mortgage insurance
Sources reviewed August 27, 2026. Rules and disclosures can change; current transaction documents control.
Frequently asked questions
Is 20% down required for a Florida conventional loan?
No. Eligible conventional purchases can use less than 20% down, although mortgage insurance commonly applies above 80% loan-to-value.
Does 10% down always produce a better rate than 5%?
No. Pricing depends on the complete scenario and timing. Compare aligned written options.
Does 20% down eliminate every housing cost?
No. Taxes, insurance, association dues, closing costs and maintenance remain.
Can credits replace the required down payment?
Credits may cover eligible costs within applicable limits but do not automatically replace a required borrower contribution.
How should I choose a percentage?
Compare cash to close, payment, PMI, post-closing liquidity, property risks and holding period.