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Buying a Home in Florida: The 2026 Readiness Guide

Florida draws more out-of-state buyers than almost anywhere else in the country. Being ready here is less about the loan and more about the two line items that surprise people: homeowners insurance and homeowners association (HOA) dues.

Brian Mix— Licensed Loan Officer, NMLS #111175
Published July 28, 20269 min read

2026 loan limits in Florida

Conforming (Fannie / Freddie)

$806,500 baseline · up to $967,150 in Monroe County (Key West)

FHA loan limit

$524,225 (baseline counties)

up to $967,150 (Monroe County) in high-cost counties

What homes actually cost

Median home price: ≈ $415,000 statewide

Roughly 28% of Florida households can afford the state median home. Insurance is the swing factor: the same house can pencil or fail based on roof age and wind mitigation, so quote coverage before you get attached to a property.

Property taxes & insurance

Average effective property tax rate: ≈ 0.79% of assessed value, before the homestead exemption

Florida's homestead exemption removes up to $50,000 of taxable value from your primary residence, and the Save Our Homes cap limits assessment growth to 3% (or inflation, whichever is lower) once homestead is in place. Your first-year bill is based on the new purchase price, not the seller's capped amount — do not budget off the current owner's tax bill.

Average homeowners insurance: ≈ $4,200/year for a $400K home — the highest in the U.S.

Wind and flood are separate conversations. A roof older than about 15 years can make a home uninsurable at standard rates, and a wind-mitigation inspection can cut the premium substantially. Flood insurance is required in FEMA special flood hazard areas and is worth carrying even outside them.

Down-payment assistance in Florida

Florida Hometown Heroes

Who: Full-time Florida workers (most occupations qualify) under county income limits

What: Up to 5% of the first mortgage amount (capped at $35,000) for down payment and closing costs, as a 0% deferred second that is repaid when you sell or refinance.

Florida Assist (FL Assist)

Who: First-time buyers statewide using a Florida Housing first mortgage

What: Up to $10,000 as a 0% deferred second mortgage — nothing due monthly, repaid on sale or refinance.

Florida HFA Preferred / Salute Our Soldiers

Who: Conventional-eligible buyers, and veterans and active-duty military statewide

What: Reduced mortgage insurance pricing plus 3%–5% down-payment assistance stacked on the first mortgage.

Is buying in Florida right for you?

Closing customs in Florida

Title companies close most Florida transactions. Who pays for the owner's title policy is negotiated county by county — the seller usually pays in most of the state, the buyer usually pays in Miami-Dade, Broward, Sarasota, and Collier. Documentary stamp tax on the deed is customarily a seller cost.

Frequently asked questions

Why is homeowners insurance so expensive in Florida?

Hurricane exposure plus years of litigation costs pushed Florida premiums to roughly triple the national average. Lenders require the coverage, so it is part of your qualifying payment — get a bindable quote during your inspection period, not after.

What down-payment help can I get in Florida?

Florida Hometown Heroes is the largest: up to 5% of the loan amount, capped at $35,000, for full-time Florida workers under county income limits. FL Assist adds up to $10,000 for first-time buyers statewide.

Does a homeowners association affect whether I qualify?

Yes. HOA dues count in your monthly housing payment for qualifying purposes, exactly like taxes and insurance, and Florida condo associations have added special assessments for structural reserves since 2022. Ask for the association budget early.

Loan programs in Florida

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