It’s perhaps the biggest question for many first-time home buyers —and one with no one-size-fits-all answer. That’s actually okay because many of us who buy our first new custom Florida home do so via a mortgage, also known as a home loan.
A down payment lowers the price of your home, thus the amount of your mortgage. This is especially important for first-time buyers, who often don’t have the proceeds from the sale of a previous home to roll into the purchase of the next one.
But, there are many routes to building a down payment. As with any goal, it requires planning, self-awareness and enthusiasm, and we at ICI Homes can offer some suggestions. We’ve built new custom Florida homes all over the Sunshine State for 45 years and we’re happy to walk alongside first-time buyers.
Read for tips on how you can save for a down payment on a house.
Key takeaways
Start by doing a financial checkup: reduce debt, check your credit, and get pre-approved to understand your budget.
The standard down payment is 20%, but many loan programs allow smaller amounts—especially for first-time buyers.
Create a savings plan by setting a budget, opening a dedicated savings account, and contributing consistently each month.
Boost your savings with side gigs, freelance work, or by monetizing hobbies—and consider asking for cash gifts for birthdays or holidays.
Explore local and state down payment assistance programs that offer grants, low-interest loans, and educational resources to help first-time buyers.
Do your homework
Begin here, because your discoveries will give you a starting point.
First, do a financial checkup. Pay off debt, check your credit scores and go through the mortgage pre-approval process with several lenders to establish your price range. All of this may take longer than you’d like. Maybe you’ll need to erase more debt than expected or raise your income. Again, that’s okay. It gives you a roadmap.
Second, decide the type of new custom Florida home and sizes that work for you and your household.
Third, decide how much of a down payment you’d like to pay for a new custom Florida home.
The industry standard is 20 percent, which avoids private mortgage insurance, an added cost you’ll pay to protect the lender until you’ve paid 20 percent of your home loan. But industry standard isn’t the only option. Many lenders and builders accept smaller down payments, depending on the type of mortgage.
Next step? Decide how long you’ll save for a down payment.
Strategies for saving
Establish a saving account if you don’t have one and begin filling it!
Start with simple methods to ensure those savings-account deposits happen on a consistent basis.
Sketch out a monthly budget using your current income and expenses, then determine how much money you can divert, comfortably, to your savings account each month.
If you can, increase that amount by increasing your income. Add freelance gigs or part-time jobs. Become a dog walker or pet sitter. Have a favorite hobby you can monetize? Go thrifting and sell vintage clothing online. Paint holiday ornaments to sell at local art festivals.
Ask for cash as holiday, birthday, or wedding-shower gifts.
As your down-payment savings grow, so will your encouragement.
Down payment assistant programs
These can be helpful, especially for first-time buyers.
They offer educational resources, plus possible grants and low-cost loans. Check municipal and county websites for local programs, and the state’s Florida Housing Finance Corporation.
Ready for your new custom Florida home? Talk to ICI Homes here.
A down payment lowers the price of your home, thus the amount of your mortgage. This is especially important for first-time buyers, who often don’t have the proceeds from the sale of a previous home to roll into the purchase of the next one.
