Overview from Francisco Cabrera:
One of the most frequent surprises for first-time buyers is learning that the down payment is only one component of what they must wire on closing day. Let's unpack exactly how cash to close is calculated in Florida.
What Is the Down Payment?
Your down payment is the portion of the purchase price that you pay directly in cash, with the remainder funded by your mortgage loan. For example, on a $400,000 home with a 5% conventional down payment, your down payment is $20,000, leaving a $380,000 loan balance.
This money directly builds equity in the property from day one and determines your loan-to-value (LTV) ratio.
What Makes Up 'Cash to Close'?
Cash to close is the total sum required at settlement. The simple formula is:
Cash to Close = Down Payment + Closing Costs + Prepaids & Escrow - Earnest Money Deposit - Seller Credits
- Closing Costs (Lender & Title): Appraisal fee, credit report fee, origination fee, settlement attorney/title closing fee, title search, and Florida lender's title insurance policy.
- Florida State Taxes: Florida doc stamps on the mortgage ($0.35 per $100) and intangible tax ($0.002 per dollar of loan amount).
- Prepaids & Escrow: 1 full year of homeowners insurance upfront, plus a cushion of 2-3 months of property taxes and insurance held in escrow.
- Credits: Your earnest money deposit paid with your offer is credited back, as are any agreed-upon seller credits or lender credits.
Rule of Thumb for Florida Buyers
Plan for an additional 2.5% to 4% of the purchase price on top of your down payment to cover settlement costs and Florida prepaid taxes and insurance.
Monthly Payment Calculator
Estimate real monthly scenarios with verified math before making an offer.
Open calculatorFHA vs Conventional Loans
Compare specific program guidelines, limits, and documentation requirements.
Explore programHave questions about your specific scenario?
Every Florida borrower has unique timelines and financial goals. Book a free 15-minute strategy call with Francisco to review your options—honestly, in English or Spanish.
Cabrera Mortgage · Francisco Cabrera, NMLS #2348359 · Bright Horizon Lending Inc., NMLS #2565670