Buying on the Space Coast can feel out of reach if you think you need 20% down. The truth is, many Satellite Beach buyers purchase with far less, including 0% options if you qualify. You also face unique coastal costs like wind and flood insurance, so planning your cash-to-close matters as much as picking a loan.
In this guide, you’ll learn the most common down payment paths, how lenders qualify you, what local insurance and escrow mean for your budget, and how timelines work in Brevard County. You’ll finish with a clear plan to move forward with confidence. Let’s dive in.
Your main down payment paths
Conventional loans
Conventional financing is popular for well-qualified borrowers. You can buy with as little as 3% down through certain first-time or income-based programs, though many buyers choose 20% down to avoid private mortgage insurance (PMI). Lenders often prefer credit scores around 620 or higher for low-down options, and they typically accept debt-to-income ratios in the 43% to 50% range with the right strengths elsewhere.
Pros:
- Competitive rates for strong credit
- PMI can be canceled once you reach 80% loan-to-value
- No ongoing mortgage insurance once you have 20% equity
Cons:
- PMI adds to your monthly payment if you put less than 20% down
- Stricter credit and reserve requirements than some government loans
FHA loans
If you need more flexibility on credit or savings, FHA can help. Many qualified buyers put 3.5% down with scores of 580 or higher. FHA requires an upfront mortgage insurance premium and an annual premium paid monthly, which can last for the life of the loan depending on your down payment and terms.
Pros:
- Lower minimum down payment
- More flexible credit standards
- Allows full down payment from gift funds with proper documentation
Cons:
- Mortgage insurance costs can be higher over time
- Properties must meet FHA appraisal and property standards
VA loans
Active-duty service members and eligible veterans often buy with 0% down using VA loans. There is no monthly PMI, which helps your monthly budget. Many VA loans include a funding fee unless you qualify for an exemption, and you must meet occupancy and eligibility rules.
Pros:
- 0% down possible
- No monthly PMI
- Favorable underwriting for eligible borrowers
Cons:
- Funding fee may apply
- Occupancy and eligibility requirements
USDA loans
USDA can be a path to 0% down for eligible buyers and properties. Location and income limits apply, and many coastal or more urban neighborhoods do not qualify. If a property is eligible and your income meets the guidelines, USDA can be a strong option.
Gift funds and seller help
Many loan types allow gifts from family to help with your down payment. You’ll need a gift letter and proof of funds transfer from the donor. Sellers can also contribute to closing costs within program limits, which reduces your cash due at closing.
Key reminders:
- FHA commonly allows your full down payment to be a gift
- Conventional loans allow gifts, but some low-down programs may require a portion of your own funds
- Every lender will require proper documentation of the gift and its source
Down payment assistance (DPA)
DPA can come as a grant, a forgivable or deferred second mortgage, a zero-interest loan, or matched savings. Programs often have income limits, price caps, and education requirements. Florida offers statewide options, and Brevard County or local nonprofits may have additional offerings.
Pros:
- Reduces or eliminates out-of-pocket down payment
- Can help first-time buyers bridge the gap
Cons:
- Extra paperwork and approval steps
- Possible second liens, resale or occupancy rules
- Must start early so approvals do not delay closing
What lenders review
Credit, income, and DTI
Lenders look for stable income over about two years, review your credit profile, and calculate your debt-to-income ratio. Conventional loans often target a DTI of up to about 43% to 50% with strong compensating factors. FHA may allow higher DTIs in some cases. Lender-specific overlays can tighten these ranges.
Documenting your funds
Down payment money can come from your savings, the sale of assets, gift funds, DPA, or employer assistance if permitted. Expect to provide bank statements, records of asset sales, and gift letters. Lenders often require funds to be in your account for a period of time or a clear paper trail for large deposits.
Mortgage insurance and total cost
PMI for conventional loans varies by credit score and down payment size. You can often ask to cancel it at 80% loan-to-value, and it usually ends automatically at 78% by law. FHA requires an upfront premium and an annual premium that is part of your monthly payment, sometimes for the full loan term depending on the scenario. VA loans do not charge monthly PMI, but many include a funding fee.
Space Coast factors that impact cash
Coastal insurance and flood zones
Satellite Beach and nearby coastal neighborhoods often carry higher homeowners insurance and wind coverage costs than inland areas. If a property is in a FEMA-designated flood zone, you will also need flood insurance in place before closing. These policies increase both your monthly payment and your cash-to-close due to prepaid premiums and escrow requirements.
Tips:
- Get wind and flood quotes early in your inspection period
- Ask about wind mitigation credits and what documentation is needed
- Build these premiums into your affordability plan from day one
Taxes, HOA, and escrow
Property taxes, HOA or condo dues, and special assessments affect your monthly payment and your DTI. Your lender will likely collect reserves for taxes and insurance in escrow, which raises the amount you must bring to closing. This is not an extra fee; it is money set aside to pay your future bills.
What cash-to-close includes
Your cash-to-close equals your down payment plus closing costs, prepaid items, and escrow reserves. Closing costs typically run about 2% to 5% of the purchase price, depending on your loan type and service providers. Coastal buyers should plan for higher prepaids for insurance.
Cash-to-close summary:
- Down payment
- Closing costs for lender and title services
- Prepaid insurance and property taxes
- Escrow reserves required by your lender
Timelines in Brevard County
Typical milestones
- Preapproval: usually 1 to 3 business days after you provide documents
- Offer and earnest money: deposit often 1% to 2% of price, due per contract
- Processing and underwriting: commonly 2 to 4 weeks
- Appraisal and inspections: often scheduled within 1 to 2 weeks of contract
- Closing: many conventional deals close in about 30 to 45 days; FHA or VA can be similar but may need extra time
When your funds are due
Earnest money is due shortly after your offer is accepted, based on contract terms. Your exact down payment and closing costs are due at closing, and you will receive a Closing Disclosure at least three business days before that date. If you are using gift funds, transfer them early so they are documented and seasoned per your lender’s requirements.
Common delay points
Securing flood insurance on a property in a flood zone can take time, especially if you want multiple quotes. DPA approvals can also cause delays if started late. Appraisal findings or required repairs may add days to your timeline, so build in a cushion.
Plan your down payment like a pro
A simple step-by-step checklist
- Define your monthly comfort zone including insurance, taxes, and HOA dues.
- Get preapproved to clarify your best-fit loan type and price range.
- Gather documents: recent pay stubs, W-2s, bank and asset statements, and IDs.
- Ask lenders about PMI, MIP, funding fees, and how long PMI might last for your scenario.
- Explore DPA early and complete any required education.
- Line up gift funds with a signed gift letter and a clean paper trail.
- Request insurance quotes during inspections and plan prepaids and escrow.
- Review your Closing Disclosure and wire your funds safely based on title’s instructions.
Choosing the right path
If you value canceling mortgage insurance and have strong credit, a low-down conventional option may balance monthly cost and flexibility. If your credit needs a more forgiving path, FHA can open the door with 3.5% down. If you are eligible for VA, the 0% down and no monthly PMI often deliver the most purchasing power. If you meet location and income limits, USDA could also be a fit.
Ask yourself:
- Do I qualify for VA or USDA based on service, location, and income?
- How long will I keep this home, and does that make FHA insurance acceptable?
- Could a DPA reduce my out-of-pocket enough to move sooner?
- How do wind and flood premiums affect my monthly budget?
How we help you move forward
Buying near the beach involves more moving parts, from insurance quotes to program timelines. You want a calm, clear plan from offer to close. With boutique, client-first representation, we help you evaluate loan paths with your lender, time your deposits, and anticipate coastal costs so there are no last-minute surprises.
If you are considering a home in Satellite Beach or anywhere on the Space Coast, let’s start with a focused plan that aligns your down payment, insurance, and timing. Reach out to discuss your goals with LGN Group - Ann LeNoir & Jenny Shupard.
FAQs
What is the minimum down payment in Satellite Beach?
- Depending on eligibility, options range from 0% (VA or USDA) to 3% (some conventional programs) to 3.5% (FHA), with lender and program rules applying.
Can gift funds cover my entire down payment?
- FHA commonly allows 100% of the down payment as a gift, while conventional programs often allow gifts but may require some of your own funds in certain scenarios.
How do wind and flood insurance affect cash-to-close?
- Lenders require active homeowners insurance and, if applicable, flood insurance at closing, which increases prepaids and escrow reserves you must bring.
When do I pay my down payment and closing costs?
- You pay the exact amount at closing after reviewing your Closing Disclosure, which arrives at least three business days before you sign.
How long does a Space Coast mortgage take to close?
- Many conventional, FHA, or VA loans close in about 30 to 45 days, though DPA approvals, insurance, and repairs can extend timelines.
Are there down payment assistance programs in Brevard County?
- Statewide and local programs may exist with income limits, price caps, and education requirements; start early to meet approval timelines.
Will PMI make my payment much higher with 3% to 5% down?
- PMI cost varies by credit score and loan-to-value; ask your lender for illustrations and when you can cancel it based on your price point.
