March 27, 2026
First-Time Home Buyer Down Payment Guide: Orlando, FL
Saving for a down payment is the biggest hurdle most first-time buyers face. The good news is that you probably do not need as much as you think. The old rule of putting 20% down is no longer the standard, and most first-time buyers in Orlando pay far less than that to get into a home.
Here is a clear breakdown of what you actually need, your loan options, and the programs available to help.
How Much Down Payment Do First-Time Buyers Really Need?
Most first-time home buyers put down between 3% and 5%. On a $350,000 home in Orlando, that translates to $10,500 to $17,500, a significant difference from the $70,000 you would need at 20%.
Some loan programs go even lower, with options starting at 3.5% or even 0% down depending on your eligibility. The right program depends on your credit score, income, military service history, and the location of the property.
Loan Options by Down Payment Requirement
Conventional Loans: As Low as 3% Down
Conventional loans backed by Fannie Mae and Freddie Mac allow qualified first-time buyers to put down as little as 3%. These programs typically require a minimum credit score of 620 and may have income limits depending on the specific program.
On a $300,000 home, a 3% conventional down payment comes to $9,000.
FHA Loans: 3.5% Down
FHA loans are a popular choice for buyers with lower credit scores. With a score of 580 or higher, you can qualify with just 3.5% down. Borrowers with scores between 500 and 579 may still qualify but will need to put 10% down.
On a $300,000 home, the FHA minimum comes to $10,500.
VA Loans: 0% Down
If you are a veteran, active-duty service member, or eligible surviving spouse, the VA loan program requires no down payment at all. This is one of the most powerful homebuying benefits available, and it also eliminates the need for private mortgage insurance.
USDA Loans: 0% Down
USDA loans offer zero-down financing for buyers purchasing in eligible rural and suburban areas. Parts of the greater Orlando metro, particularly in surrounding counties, may qualify. Income limits apply, but this program is worth exploring if you are buying outside the city core.
Understanding Private Mortgage Insurance (PMI)
When you put down less than 20% on a conventional loan, your lender will require private mortgage insurance. PMI protects the lender if you default, and it adds to your monthly payment.
The cost of PMI varies based on your credit score, down payment amount, and loan size, but it typically runs between 0.5% and 1% of the loan amount per year. On a $290,000 loan, that could mean an extra $120 to $240 per month.
FHA loans have their own version called mortgage insurance premiums (MIP), which include both an upfront fee and a monthly charge. Unlike conventional PMI, FHA mortgage insurance often stays on the loan for its entire term unless you refinance into a different loan type.
VA and USDA loans do not require PMI, which is a major cost advantage.
Down Payment Assistance Programs in Orlando
Thousands of down payment assistance programs exist across the country, and Florida has several strong options for first-time buyers.
Florida Hometown Heroes Housing Program
This program is available to Floridians working in over 50 eligible professions, including active military members and veterans. It provides down payment and closing cost assistance and is administered by the Florida Housing Finance Corporation.
Florida Housing First-Time Buyer Programs
Florida Housing offers several programs that can be layered with your first mortgage, including the Florida Assist program, which provides up to $7,500 at 0% interest with no monthly payments. The balance becomes due when the home is sold, refinanced, or transferred.
The Homebuyer Loan Program offers up to $10,000 at 3% interest over a 15-year term for down payment and closing cost assistance.
Gift Funds from Family
Most loan programs allow buyers to use gift funds from family members toward their down payment. FHA, VA, and conventional loans all permit gifted funds, though each has specific documentation requirements. Your lender can walk you through what is needed.
Do Not Forget About Closing Costs
Your down payment is not the only upfront expense. Closing costs typically run 3% to 4% of the purchase price and cover items like appraisal fees, title insurance, lender fees, and prepaid taxes and insurance.
On a $300,000 purchase, expect closing costs between $9,000 and $12,000. Some of the assistance programs mentioned above can help cover these costs in addition to your down payment, so ask your lender which programs you may be eligible for.
Who Qualifies as a "First-Time Home Buyer"?
The definition may be broader than you expect. In most programs, a first-time buyer is anyone who has not owned a primary residence in the past three years. That means if you previously owned a home but have been renting for at least three years, you may qualify again for first-time buyer programs and assistance.
Start the Conversation with a Local Orlando Lender
Every buyer's situation is different. Your credit score, income, employment history, and the type of property you are purchasing all factor into which loan program and down payment option makes the most sense.
The best first step is talking to a lender who knows the Orlando market and can match you with the right program. Contact Edge Mortgage USA to get a clear picture of your options, find out what you qualify for, and take the first step toward owning a home in Central Florida.
