Florida homebuyers have five main types of mortgages to choose from, several state-backed assistance programs that offer up to $35,000 in assistance, and interest rate terms that fluctuate in line with the national market. Here, we’ll take a look at some that could really work for you.
What types of mortgages are available in Florida?
Choosing the right loan depends on your credit score, down payment, and the type of property you’re buying. Borrowers in Florida typically choose from five main categories.
Conventional Loans
These loans are the most common option. They aren’t backed by the government, so lenders typically require a credit score of 620 or higher. If you’re a first-time homebuyer, you can apply for a down payment of as little as 3%, but if your down payment is less than 20%, you’ll need to pay private mortgage insurance (PMI) until you build up enough equity in the home.
Government-Backed Loans
FHA loan provide an opportunity for buyers who don’t qualify for conventional loans. An FHA loan requires only a 3.5% down payment and is a good option for those with lower credit scores. A VA loan for eligible veterans and active duty military personnel requires no down payment and does not include mortgage insurance. A USDA loan covers the purchase of properties located in rural Florida without a down payment, as long as you meet income requirements.
Fixed-Rate Mortgages
Fixed-rate mortgages keep your interest rate the same for the entire term of the loan, which is usually 15, 20, or 30 years. Even if market rates rise significantly, your payment will not change. This feature makes financial planning easier if you plan to stay in your home for several years.
Adjustable-Rate Mortgages (ARMs)
Start with a lower interest rate for an initial term, usually 5, 7, or 10 years, and then the interest rate usually adjusts every year. These loans can save you money in the short term, but you accept the risk that interest rates will increase before you sell the property or refinance.
Jumbo Loans
These loans cover amounts higher than the Conforming Loan Limit. As of 2026, the limit is $832,750 for most areas of the U.S., including most of Florida. Jumbo loans are common in cities like Miami, Naples, and Palm Beach, given the high prices of homes in local markets. You’ll typically need a credit score near 700, a 10 to 20 percent down payment, and be prepared for a slightly higher interest rate than a conventional loan.
If you’re buying an investment property instead of a primary residence, a DSCR loan will assess your eligibility based on rental income from the property, rather than your personal income. This type of loan is especially popular in short-term rental markets like Naples, Orlando, and Tampa.
Down Payment Assistance Programs for First-Time Homebuyers in Florida
Florida has several programs for first-time homebuyers, most of which are administered through the Florida Housing Finance Corporation.
The Florida Housing First-Time Homebuyer Program offers 30-year fixed-rate home loans at competitive rates. To qualify, you must have a minimum credit score of 640 and have not owned a home in the past three years. The program can be used in conjunction with FHA, VA, USDA, or conventional financing.
Florida Assist offers up to $10,000 in an interest-free second mortgage with deferred repayment to help with down payments or closing costs. You do not have to repay this amount until you sell the home, refinance your principal loan, or pay off your first mortgage in full.
The Florida Homeownership Loan Program offers up to $12,500 in second home loans at a 3% interest rate, repaid over 15 years. Unlike Florida Assist, this loan requires a small monthly payment of about $53 per month, but you can borrow more.
HFA Preferred and HFA Advantage offer 3%, 4%, or 5% of the purchase price of a home as a forgivable second home loan. If you stay in the home for five years, the balance of the loan is forgiven in full.
The Hometown Heroes Housing Program is designed for first responders, healthcare workers, teachers, and military personnel. It offers 5% of the loan amount, between $10,000 and $35,000, in an interest-free, deferred second home loan, and also waives the origination fee. The 2026 funding round of the program reopened in July with $50 million in funding and is offered on a first-come, first-served basis. So, before you count on this assistance, ask a participating lender about the program’s current capacity.
One elementary school teacher in Jacksonville we saw use this combination, bought a $260,000 home with an FHA loan, and Hometown Heroes covered $13,000 in down payment and closing costs. Her monthly payment wasn’t much different from what she was paying in rent before, and she didn’t have to tap into her savings.
Florida Mortgage Rates Now
As of the first week of September 2026, the average 30-year fixed-rate mortgage rate nationwide was 6.71%, and the 15-year fixed-rate mortgage rate was 6.04%, according to Freddie Mac’s weekly survey. Mortgage rates in Florida tend to move closer to the national rate because conventional loans are priced based on the same mortgage-backed securities market, regardless of the state.
The rate you actually pay depends on your credit score, the type of loan, the amount of the down payment, and whether the property is a primary residence, a second home, or an investment property. For example, a borrower with a credit score of 760 and a 25% down payment will receive a significantly better interest rate than someone with a credit score of 640 and a 5% down payment.
To see a real-time rate that reflects current market changes, it’s best to check mortgage interest rates and not rely on charts that can be out of date within a few days. Interest rates change daily, sometimes more than once a day.
How to Calculate Your Monthly Mortgage Payment in Florida
Your monthly payment depends on your loan amount, interest rate, loan term, property taxes, homeowners insurance, and, if applicable, private mortgage insurance (PMI).
The quickest way to estimate this amount is to use a Florida mortgage calculator, where you enter your numbers and get an instant estimate.
If you want to do the calculation manually:
- First, determine your total loan amount.
- Divide the annual interest rate by 12 to get your monthly interest rate.
- Multiply your loan amount by a compounding factor: (1 + monthly rate) raised to the power of the total number of payments.
- Divide the result by (1 + monthly rate) raised to the power of the same number of payments, minus 1.
This calculation gives you the monthly principal and interest amount. Taxes, insurance, and PMI are added to this amount. Florida also has higher than average homeowners insurance costs due to the state’s exposure to severe storms, so you’ll need to budget for this separately.
How does the mortgage application process work in Florida?
The process for getting a mortgage, from pre-approval to closing, usually follows a fairly straightforward path.
- First, take a look at your finances. Lenders will look at your credit score, income, debt-to-income ratio, and savings, among other things. A higher credit score and lower debt-to-income ratio (DTI) will usually help you get better terms and rates.
- Choose the right type of loan. This will depend on your credit score, down payment, and whether you’re buying a primary residence, a second home, or an investment property.
- If you want to have access to multiple lenders, work with a Florida mortgage broker, as this allows you to review options from multiple lenders rather than just one bank. Brokers can help you effectively compare loan options and are especially helpful if your income doesn’t fit the standard W-2 income structure.
- Get pre-approved. Pre-approval determines how much you can actually borrow and makes you a stronger buyer in the eyes of sellers. A mortgage specialist will review your credit, income, and documents to make a conditional offer.
- Submit your complete application. You’ll typically need pay stubs, tax returns, bank statements, employment verification, and a credit report authorization.
- Go through the property appraisal and final loan review. The lender will conduct a property appraisal to verify the value of the home, and at the same time, the underwriting process will verify that everything meets the guidelines and requirements.
- Complete the purchase. You will sign the final documents, pay the remaining closing costs, and receive the keys to the home.
Read more: DSCR loan rates Florida
