By the Mountain Cove Homes team · Miami, Florida
How much down payment new construction needs in Florida is not just a percentage question, it is a question of which loan you use, which program sits on top of it, and which amount of cash a lender will actually count. The answer is a range, and the range is set by documents that each have their own date.
For a pre-construction home in Miami-Dade, the question has an extra layer. The cash you pay at reservation, the cash you bring at closing and the cash a program lends you are three different amounts, and treating them as one is the most common budgeting error.
This guide sets the minimums side by side, from the sources read in October 2026, and marks the ones that need confirmation. The wider map of programs is in the guide to first time home buyer programs in Miami-Dade.
Why the Down Payment Answer Changes With the Loan
A down payment is the portion of the price you pay in cash instead of borrowing it. Each loan type sets its own minimum, and a public program can lend you part of the cash without changing the loan’s rules.
That separation is the key. The first mortgage sets the minimum, and a program such as a deferred second mortgage helps you reach it, which means the same house can need different cash depending on the path.
The Minimums by Loan Type and Program
The table compares the paths that the sources described. It shows what each source states, not what any lender will approve.
| Path | Minimum named by the source | Source and date |
|---|---|---|
| Conventional, Fannie Mae HomeReady | 3% | Fannie Mae HomeReady page, read October 2026 |
| FHA | 3.5% | Shown in Fannie Mae’s comparison table, read October 2026; HUD’s own handbook was not read for this guide |
| VA | Page states that nearly 90% of VA-backed loans are made with no down payment | VA home loans page, last updated December 17, 2024 |
| Miami-Dade First-Time Homebuyer Program | 3%, with 1% from the buyer’s own funds | Miami-Dade HCD service page, read October 2026 |
Sources: Fannie Mae’s HomeReady page, the VA’s home loans page and Miami-Dade’s First-Time Homebuyer Program page.
The FHA figure deserves a flag. The 3.5% shown above is the figure in Fannie Mae’s comparison table, and HUD’s Single Family Housing Policy Handbook 4000.1 is the primary source for FHA minimums. Confirm it with your lender and in the handbook before you plan around it.
Conventional with a low down payment
The HomeReady page states that down payments can be “as low as 3%.” It also states that if all occupying borrowers are first-time homebuyers, at least one of them must complete homeownership education, and that Fannie Mae’s HomeView course satisfies the requirement.
The page does not state an income limit as a percentage of area median income in the portion read, and it points to an area median income lookup tool. The guide to a 3% down conventional loan in Florida covers the product in full.
FHA
FHA is the government-insured path, and HUD describes it on its FHA page, which links the handbook and the mortgage limits tools but does not itself print the minimum. The guide to an FHA loan on new construction in Florida covers what the lender and the builder must document.
VA
The VA page states that nearly 90% of VA-backed loans are made with no down payment. It also links to pages on the funding fee and closing costs, and states that eligibility depends on a Certificate of Eligibility based on service history and duty status.
That is a statement about the share of loans, not a promise about any one purchase. The lender decides your terms, and the VA’s rules and the lender’s overlays can differ.
The county’s First-Time Homebuyer Program
The county’s program requires a minimum of 3% with 1% coming from the borrower’s own funds. The home must be in an approved County-funded development, and the page lists other rules, including a total debt limit of 45% of gross monthly income and a training course.
This is a program rule on top of a first mortgage, not a separate loan type. The county also runs a down payment assistance program with its own terms, which this guide does not repeat.
What a Program Changes, and What It Does Not
A program that lends part of your cash lowers the amount you bring, and it adds a loan. The Florida Housing overview describes Florida Assist at up to $10,000, the FL HLP second mortgage at $12,500, and the HFA Preferred second mortgage at 3%, 4% or 5% of the loan, and Hometown Heroes at up to 5% of the first mortgage with a $10,000 minimum and a $35,000 maximum.
What the programs do not change is the first mortgage’s own minimum. A program that fills the gap between your savings and the required amount is still repaid, and each one lists the events that make the loan due.
Arithmetic for orientation
For arithmetic only, 3% of a $500,000 purchase price is $15,000, and 3.5% is $17,500. The difference is $2,500. These are not offers, and they do not describe any home, price or lender.
Percentages also hide the effect of rounding and of the closing costs that sit beside them, so a figure such as $17,500 is a floor for the down payment and not a statement of the cash you will need on the day. A lender’s estimate is the only document that combines every line.
The number that matters in your own file is the amount the lender applies the percentage to. Ask whether it reads the base price, the base price plus the lot premium, or the appraised value, and whether options are included. The guide to the lot premium on new construction in Florida explains why the answer changes the figure.
The Deposit Is Not the Down Payment
On a pre-construction home you typically pay a deposit when you reserve or sign. That money is a separate item with its own purpose, and what protects it is explained in the guide to the reservation and the deposit.
Whether a deposit is credited toward the amount due at closing depends on the contract. Ask the builder in writing how each deposit is applied, and ask the lender whether it counts the deposit toward your cash to close.
Cash to close is bigger than the down payment
The down payment is one part of the cash due at closing. Closing costs and prepaid items are others, and none of them appear in the minimum percentage.
The first mortgage’s disclosures, the rate lock and the lender’s estimate are covered in the guide to pre-construction home financing in Florida. Build your budget from the lender’s estimate of cash to close, not from the percentage.
How the Three Amounts Line Up on the Calendar
A pre-construction purchase spreads money across time. The reservation deposit comes first, at or near signing, and the first mortgage and any assistance close months later.
Seen on a calendar, the cash falls into three buckets. The first is the deposit you pay under the contract, which the builder holds under the terms of the contract. The second is the cash you bring at closing, made up of the down payment, closing costs and prepaid items. The third is the assistance, which a program lends at closing and which arrives only if the loan, the buyer and the program still match on that day.
Why the gap between contract and closing matters
Income limits, program funds and lender rules can change between the first and the last bucket. The county’s First-Time Homebuyer Program page asks for a contract with at least 60 days of validity remaining, and the Florida Housing overview shows no effective date, so a buyer has to ask which version of each rule applies on the closing date.
Mountain Cove Homes’ own legal information states that the builder will use its best efforts to meet the estimated delivery date, with a maximum of two years from the effective date of the purchase agreement, excluding events such as acts of God, labor disputes and material shortages. Cash set aside for a closing that moves is cash that has to stay available, so plan your savings against the window and not the best case.
What a Lender Reads Besides the Percentage
The percentage is one input. A lender also reads your credit, your debts and the documents behind your cash, and a program adds its own tests.
The county’s First-Time Homebuyer Program page asks for six months of bank statements for all accounts, two years of tax returns and a fully executed sales contract, and the HomeReady page notes that on-time rent payments can be considered in loan eligibility. These are program and product rules that show how much paper stands behind a down payment.
Start the paper trail early. A balance that shows up suddenly in an account invites questions, and a lender can answer them only with documents.
Where the Money Can Come From
Lenders ask where your cash comes from, and the source decides whether it counts. Savings, program assistance and gifts are treated differently, and a gift has rules about the donor and the documentation.
The rules are in the guide to gift funds for a down payment in Florida. A donor connected to the transaction can be a problem, and that is a question to settle with the lender before any money moves.
Mistakes to Avoid
The expensive mistakes are errors of assumption.
- Planning around one percentage. The minimum depends on the loan and the program.
- Counting the deposit as the down payment. They are separate amounts.
- Forgetting closing costs. They sit outside the minimum.
- Using an FHA figure without checking the handbook. The 3.5% here is flagged for confirmation.
- Moving money without telling the lender. Large deposits need documentation.
Questions to Ask Before You Sign
A good meeting with a lender or a builder is a meeting with a list.
Questions for the lender
- Which loan type and which program give me the lowest cash to close?
- What price does the percentage read: base price, base price plus lot premium, or appraised value?
- How will you count my reservation deposit?
- Which assistance programs can I combine with this loan, and what does each add to my debt-to-income ratio?
Questions for the builder
- How is each deposit applied at closing?
- What is included in the base price, and what is a lot premium or an option?
- What is the estimated delivery window, and what happens to the financing if it moves?
If the answers are vague, that is a warning sign. If the numbers are vague at the beginning, they usually become inconvenient later.
Frequently Asked Questions
What is the minimum down payment for new construction in Florida?
There is no single minimum. The sources read for this guide state 3% for a conventional HomeReady loan, 3.5% for FHA in Fannie Mae’s comparison table, and a share of VA loans made with no down payment. The loan and program you use set the figure.
Is the deposit the same as the down payment?
No. The deposit is paid at reservation or signing under the contract, and the down payment is the cash portion at closing. Ask the builder and the lender how the deposit is applied.
Can down payment assistance cover the whole amount?
It depends on the program and the loan. The county’s First-Time Homebuyer Program requires 1% from the borrower’s own funds, and other programs set their own rules, so confirm each one with the lender.
Does the lot premium count toward the percentage?
It depends on how the lender and the contract define the price. Ask which price the percentage reads, because the lot premium and options can change the figure.
Can a gift pay for the down payment?
Lenders and programs accept gifts under rules about the donor and the paper trail. The details are in the guide to gift funds, and the lender makes the final call.
Do closing costs count as part of the down payment?
No. Closing costs and prepaid items are separate from the down payment, and they add to the cash due at closing.
The right down payment is not the smallest percentage you can find, it is the figure that fits your loan, your program and your calendar. Once you separate the deposit, the down payment and the closing costs, the whole budget becomes much easier to read.
About Mountain Cove Homes. Mountain Cove Homes is a boutique home builder based in Miami, Florida, building single-family homes and townhomes in small communities across Miami-Dade County. Its personnel have been constructing homes in South Florida since the early 1980s. Read more about Mountain Cove Homes.
This article is general information about down payments and mortgage options in Florida. It is not tax, legal or mortgage advice, and it does not describe the eligibility of any particular buyer or home. Loan rules, program terms and figures change, and what applies to you depends on your loan, your income and the date you close. Verify your own numbers with your lender, the agencies that administer each program and a licensed attorney before making a purchase decision.
For more information, see the additional legal disclaimers published by Mountain Cove Homes.
Talk to Mountain Cove Homes
Mountain Cove Homes is a boutique home builder in Miami, Florida, building single-family homes and townhomes in small communities across Miami-Dade County, most of them with no HOA and no CDD tax. You can see where the current homes are on the Find your home page and review the Golden Park community. If you want to walk through lot availability, pricing, and what is included at this stage of construction, we will give you the numbers directly.
Office 4878 Southwest 74th Court, Miami, FL 33155 786.458.1805 [email protected]
Florida developer registration DE46760. All prices are subject to change without notice. Home prices refer to the base price of the house plan and do not include options or lot premiums.