What loan options are available for first-time buyers?
First-time buyers typically choose among four paths: FHA (flexible credit, 3.5% down), conventional (as little as 3% down for qualifying buyers), and — for those eligible — VA and USDA at 0% down. Florida down payment assistance can stack on top of several of them.
You have more real options than the internet's doom headlines suggest — four main loan paths, plus Florida assistance that can stack on several of them. Here's the map I draw for first-time buyers, before a lender fills in your specific numbers.
The four main paths
- FHA loans: government-insured and forgiving on credit — 3.5% down with a score of 580 or higher. Often the door-opener for buyers still building their credit.
- Conventional loans: the standard mortgage; qualifying first-time buyers can put as little as 3% down, and the mortgage insurance can be removed later as equity grows.
- VA loans: for eligible veterans, service members, and certain surviving spouses — often 0% down with no monthly mortgage insurance. If you've served, start here.
- USDA loans: 0% down in eligible areas with household income limits — and "eligible" reaches further into Central Florida's edges than the word rural suggests.
(Program availability verified August 2026.)
The add-on: Florida assistance
On top of whichever first mortgage fits, Florida Housing programs can add down payment and closing cost assistance for eligible buyers — income limits, purchase-price limits, and a short homebuyer course apply, and funding comes and goes by budget year, so availability is a check-at-the-moment question through a participating lender.
How to choose without a spreadsheet headache
Eligibility narrows the field fast. Served in the military? VA is almost always the first conversation. Looking at the metro's outer edges with moderate income? Run the USDA check. Everyone else lands in the FHA-versus-conventional decision, which comes down to credit, savings, and timeline — here's that head-to-head. A good lender prices your realistic options side by side; my job is translating the comparison into what it means for your search.
Tell me where you are in the journey — even if the answer is "just curious" — and we'll shortlist the programs worth your paperwork before you fill out a single form.
This answer is general education, not legal, tax, or financial advice. Your situation is unique — let's talk through the specifics together.