One of the most common questions I get from first-time buyers in Miami is: how much money do I actually need saved before I can buy? The down payment is often the biggest hurdle — but the number might be lower than you think.
It Depends on Your Loan Type
The down payment requirement varies based on the type of mortgage you use. Here's a quick breakdown of the most common options in Miami:
FHA loans — backed by the Federal Housing Administration — require as little as 3.5% down if your credit score is 580 or above. On a $400,000 home, that's $14,000. FHA loans are popular with first-time buyers because of the lower entry point, though they do require mortgage insurance.
Conventional loans typically require between 3% and 20% down depending on your lender and credit profile. A 20% down payment eliminates the need for private mortgage insurance (PMI), which saves you money monthly. On a $500,000 home in Kendall, that's $100,000 down — which is a real number to plan for.
VA loans, available to veterans and active-duty military, require zero down payment. If you qualify, this is one of the most powerful buying tools available.
Conventional 97 loans allow just 3% down for first-time buyers with strong credit through Fannie Mae and Freddie Mac programs.
What About Condos in Miami?
Condo purchases have additional considerations. Many condo buildings in Miami — including Brickell and downtown — have specific financing restrictions based on the percentage of units that are owner-occupied versus rented. Some buildings are only eligible for cash or conventional financing, which means FHA and VA buyers may be restricted. This is something your agent and lender should verify before you fall in love with a specific unit.
Don't Forget Closing Costs
Down payment is just one piece. In Florida, buyers typically pay between 2% and 5% of the purchase price in closing costs — covering lender fees, title insurance, prepaid insurance, and property tax escrows. On a $450,000 home, budget an additional $9,000 to $22,500 on top of your down payment.
The Bottom Line
To buy a $400,000 home in Miami with an FHA loan, you'd realistically need around $25,000 to $30,000 saved — covering the 3.5% down payment plus closing costs. For a conventional loan at 10% down on the same home, plan for $50,000 to $55,000.
Getting pre-approved is the first real step — it tells you exactly what you qualify for and what you'll need saved. I work with trusted local lenders who know the Miami market and can get you a clear picture fast. Reach out and I'll connect you with the right people.