Florida Mortgage Guide

Florida Different

Insurance is your biggest wildcard. Florida's homeowners insurance market has been in crisis mode for years, with multiple carriers leaving the state and prices doubling or tripling for some homeowners. The good news: 2026 is seeing the first rate stabilization in years, with Citizens (the state-backed insurer) proposing its first rate cut in a decade. But insurance is still expensive — budget $3,000-8,000/year for a typical home, more in coastal or flood-prone areas.

No state income tax — property taxes fund local services. Like Texas, Florida has no state income tax, making it attractive for retirees and remote workers. Property taxes average 0.89% of assessed value, lower than Texas but higher than many assume. The Save Our Homes amendment caps annual assessment increases at 3% for homesteaded properties.

Homestead exemption is powerful. Florida offers a $50,000 homestead exemption for your primary residence (the first $25,000 applies to all taxes, the second $25,000 applies to non-school taxes for homes valued over $50,000). This directly reduces your taxable value. File with your county property appraiser after closing.

Flood insurance is increasingly mandatory. If you're in a flood zone, your lender requires flood insurance. But even if you're not, Citizens (the state insurer) now requires all policyholders to carry flood insurance as of 2027 — and many policies require it for 2026 renewals. Budget $500-3,000/year extra for flood coverage.

Condo buyers: Read the reserve study. After the Surfside collapse tragedy, Florida strengthened condo inspection and reserve requirements. Buildings over 3 stories and 25+ years old must complete structural inspections. Some older condos are facing massive special assessments for deferred maintenance. Check the reserve study and recent board meeting minutes before buying any condo.

• Benefit: Up to 5% of the first mortgage amount for down payment and closing costs (max varies)
• Who qualifies: Full-time Florida employees in over 50 "essential" occupations — teachers, nurses, law enforcement, firefighters, childcare workers, healthcare workers, and many more
• Key feature: Zero-interest second mortgage, deferred until sale/refinance
• Hugely popular: The program has run out of funding multiple times due to demand; check availability
• Website: floridahousing.org/live-local-act/hometown-heroes-program

• Benefit: 30-year fixed-rate mortgage + 3%, 4%, or 5% of loan amount for down payment assistance
• How it works: Second mortgage at 0% interest with no monthly payments — deferred until you sell, refinance, or pay off
• Who qualifies: First-time buyers, income limits apply (vary by county), must use participating lender
• Website: floridahousing.org/programs/homebuyer-overview-page

• Benefit: Up to $10,000 as a second mortgage at 0% interest, deferred
• Who qualifies: First-time homebuyers meeting income requirements
• Use: Can be combined with Florida Housing first mortgage

• Benefit: Federal tax credit of 10-50% of annual mortgage interest paid
• Max credit: $2,000 per year
• How it works: Reduces your federal tax liability dollar-for-dollar; can help you qualify for more home
• Duration: Lasts the life of the loan

• Boca Raton: Up to $175,000 in assistance (yes, really — but strict income limits)
• Orange County: HOME Down Payment Assistance Program
• Palm Bay: Down payment and closing cost assistance
• Miami-Dade, Broward, Palm Beach: Multiple county-specific programs
• Florida has one of the most robust networks of local DPA programs in the country

(January 2026)

Median home prices by metro:

• Miami-Fort Lauderdale: $520,000
• Tampa Bay: $375,000
• Orlando: $395,000
• Jacksonville: $340,000
• Southwest Florida (Naples/Fort Myers): $450,000+

  Market trends:

• The post-pandemic migration surge has cooled but Florida remains a top destination
• Miami condos have significant inventory; single-family homes remain competitive
• Tampa Bay offers the best value among major metros
• Southwest Florida is still recovering from Hurricane Ian (2022) — some areas have rebuilt, others haven't

  Best value areas for 2026:

• Jacksonville metro (affordable, growing logistics/tech hub)
• Tampa Bay suburbs (Brandon, Wesley Chapel, Riverview)
• Gainesville (university town, lower prices)
• Ocala/The Villages (if you're 55+ or don't mind the demographic)
• Panhandle (Pensacola, Panama City — significantly more affordable than peninsula)