![]() ![]() A cash reserve money is money in your bank account. Having cash reserves may not necessarily be required, but it is strongly recommended. Here’s a sample breakdown of what an earnest deposit might look like. ![]() Always speak with your real estate agent to gauge the amount of earnest money you might want to offer to make your bid as competitive as possible. You should include your earnest money deposit amount when you write your offer. In some cases, this might equal 10% of the home value. If you’re looking to buy a home in one of Florida’s luxury markets, such as the southern metropolis of Miami, for example, then you’ll likely need a larger deposit. However, that amount has quite a range, depending on factors such as market trends, the area, the cost of the home and more. News and World Report, 3% is common most of the time. There is no set amount of earnest money you need, but according to the U.S. However, if you decide to back out of the deal for reasons not stipulated in the purchase agreement, you’ll sacrifice your earnest money. ![]() There is no law that says you must provide earnest money, but the deposit could increase your chances of the seller accepting your offer. Earnest money: What’s normal to pay in FloridaĮarnest money is an upfront amount (usually a portion of your down payment) that you agree to pay the seller as an act of good faith to show you are “in earnest” about buying their house. However, eligibility and income restrictions can apply. The same holds true for VA loans for military families. A USDA home loan, which is available for rural and some suburban areas, might not require a minimum down payment at all. An FHA loan, for example, requires a minimum of 3.5% down. Some loan types allow for smaller, more affordable down payments. The larger the down payment you can afford, the better shape you’ll be in with both sellers and lenders when applying for a conventional home loan. We crunched the numbers to show what some of the potential down payments might look like based on your loan. The common wisdom is that you’ll need to save 20% of your home’s purchase price, but most buyers (especially first-time buyers) don’t reach that benchmark. So how much will you need to bring to the closing table to buy a house in Florida? Minimum down payments needed to buy a Florida home It offers many of the conveniences of the city along with reasonable proximity to Miami, and the median home price in West Park is $261,257, according to Neighborhood Scout. West Park, roughly a 30-minute drive from the Miami-Dade area, is one example. ![]() You can expect to find median sales prices for a single-family home for around $340,000 or a condominium or townhouse for around $225,000.įor many first-time homebuyers, suburbs and rural areas offer a reprieve from higher home prices. Prices aren’t much different in the Fort Lauderdale area, where the median sales price of single-family homes are trending around $495,000 and condominiums and townhomes are running around $220,000.įirst-time homebuyers will stretch their budgets a little further on houses for sale in Tampa, according to Tampa Realtors® Association. For a condo or townhome in the same area, you might expect to pay about $335,000. In fact, the median sales price for single-family homes in the Miami area in August 2021 was over $500,500, according to Florida Realtors®. In comparing metropolitan areas with suburban or rural, the difference in home prices can reach a crescendo. Source: (Chris Norberg / Unsplash) Buying your Sunshine State home: Let’s talk numbers “It just seems to be a general desire for more space, which we have in Jacksonville,” notes Riber. We did the research and spoke with Jeff Riber, a Jacksonville, Florida, agent who works with 72% more single-family homes than the average agent in his area. So, it’s time to stop dreaming about homeownership and start living it. Finding the right program is an important first step to becoming a homeowner. There are many down payment assistance programs in Florida that can help open the door to a home of your own. Buying a home in Florida might seem out of reach, but it doesn’t have to be. Add to that the sizable down payment and closing costs, and your head is probably already spinning. The nationwide demand for housing has also increased during the coronavirus pandemic, pushing up housing costs even more. Due to its popularity and coastlines, the cost of housing in Florida can be exceptionally high, but that also depends on where you’re searching. Whether you’re hoping to find a condo in Miami to be close to the nightlife, or are aiming for a single-family home close to your favorite golf course where you can retire in comfort, buying a house in Florida is a dream for many - it’s intimidating, but also exciting. ![]()
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