GONE are the days when you could slap down 5-10%, and scoop up a 90-95% loan… moving in thirty days later! Buying a single family home or condo in Florida? If so, you will likely need to scrounge up 20-30% for a down payment… unless you fall into one of three categories:
1) You have a high net worth and a Private Banking Arrangement ( Private banking arrangements are limited to individuals with substantial net worth.) Through a private banking arrangement you CAN probably get 100% financing (or close to it).
2)You are applying for an FHA loan. If so, you are looking at a down payment of 3.5%, with the lender financing the balance. FHA does limit the purchase price to $423,000.00 though.
3) You are a Foreign Investor. If so, you are looking at a down payment as high as 40-50% .
According to the loan amount you are applying for, buying a single family home or condo anywhere in Miami, will require you to come up with down payments of:
20% for loans up to a million dollars
25% for those from a million to $1.5
30% for anything beyond $1.5
Vacation (or second homes) have slightly more stringent guidelines, demanding:
25% down on values up to a million
30% down on those over a million
For a more detailed analysis on down-payment requirements in South Florida, take a look at Juicy Estates’ blog article by James Venney.
Foreign buyers, by and large, are required to come up with cash down payments of as much as 40-50% of their real estate investment, in order to obtain a bank loan on a Florida home purchase. Looking to buy property in South Florida? Contact the Restivo Team at EWM Realtors at 305 793-1365.