The right down payment amount depends on your financial situation, the loan program, and your priorities for monthly payment vs. upfront costs.
0% Down (VA and USDA)
Available for eligible veterans (VA) and properties in eligible areas (USDA). Eliminates the need for upfront cash but does not build immediate equity.
3-3.5% Down (FHA and Conventional)
The minimum for FHA (3.5%) and Conventional 97 (3%). Accessible but results in higher monthly payments and PMI costs.
10% Down
A middle ground that reduces your loan amount and PMI costs while preserving some cash reserves.
20% Down
Eliminates PMI entirely and provides the lowest monthly payment. For a $500,000 Keys property, this means $100,000 upfront.
Keys Considerations
Higher property values in the Keys mean larger down payments in absolute terms. Consider balancing your down payment with reserve requirements for flood insurance and maintenance.