How to Buy a House in Florida: A Step-by-Step Guide (2026)

Buying a home in Florida has its own playbook: state closing taxes, hurricane-driven insurance, a valuable homestead exemption, and even a state law that limits certain purchases by some foreign buyers. This guide walks through every step with official, current data for Manatee and Sarasota counties: Lakewood Ranch, Bradenton, Sarasota, Parrish and Palmetto.

Step 1: Know the Market and Your Real Budget

In August 2026, the median single-family sale price was $495,000 in Manatee County (+5.9% year over year) and $470,000 in Sarasota County (−1.1%). Condo and townhome medians were $307,000 and $310,000 (REALTOR® Association of Sarasota and Manatee, released Sep 16, 2026).

Your budget is more than the mortgage payment. In Florida, also plan for: - Property taxes, which depend on the county and on whether you qualify for the homestead exemption (Step 7). - Homeowners insurance. The average premium including wind was $3,181 a year in Manatee and $3,457 in Sarasota, based on policies in force on March 31, 2026 (Florida Office of Insurance Regulation, Jul 1, 2026). - HOA dues and, in many newer communities, CDD assessments (Community Development District), which appear on the property tax bill.

Step 2: Get Pre-Approved and Know Your Loan Options

The 30-year fixed-rate average was 7.28% for the week of October 1, 2026 (Freddie Mac PMMS). Your actual rate depends on credit, down payment and loan type. The most common options:

Conventional loans

Fannie Mae allows 3% down through HomeReady (for incomes up to 80% of area median income; you don't need to be a first-time buyer) and on standard loans when at least one borrower is a first-time buyer (Fannie Mae 97% LTV options; HomeReady).

FHA loans

The minimum investment is 3.5% in most cases (HUD, Jun 2025). Important: since May 25, 2025, FHA financing is limited to U.S. citizens and lawful permanent residents. Non-permanent residents no longer qualify (HUD Mortgagee Letter 2025-09).

ITIN loans

Some private lenders offer mortgages to borrowers who file taxes with an ITIN instead of a Social Security number. These are not FHA loans, and requirements (down payment, rate, documentation) vary widely by lender. Compare several written offers.

Down payment assistance

Florida's Hometown Heroes 2026 program offers up to 5% of the first mortgage (minimum $10,000, maximum $35,000). It comes as a 0%, 30-year deferred, non-forgivable second mortgage for income-qualified first-time buyers who work full time in eligible occupations, including health care, school staff, first responders, child care, servicemembers and veterans (Florida Housing). See other statewide options at Florida Housing. Never pay a fee to "apply" for assistance. Florida Housing warns that this is a common scam tactic.

Step 3: Choose Your Agent and Sign a Buyer Agreement

Since August 17, 2024, agents who use the MLS must have a written agreement with a buyer before touring homes, including virtual tours. The agreement must state the agent's compensation and that it is negotiable (Florida Realtors; NAR consumer guide). Ask your agent to walk you through every clause before you sign.

Step 4: Search, Compare and Make an Offer

In Manatee County, single-family homes took a median of 45 days to go under contract, and sellers received a median 95.6% of original list price in August 2026 (RASM). In practice, there is often room to negotiate on price or closing costs, but well-located, well-priced homes still move faster.

A typical offer includes: - An escrow deposit, held by a title company or attorney. - An inspection period, during which you inspect, get insurance quotes and, depending on the contract, can cancel. - A financing contingency and a closing date.

Step 5: Inspections, Insurance and Flood Risk

• General home inspection, plus a 4-point inspection (roof, electrical, plumbing, HVAC) and a wind-mitigation report. Insurers often ask for both, and they can lower your premium.

• Flood zone: check FEMA's official map at msc.fema.gov. Flood insurance is a separate policy.

• Flood disclosure: since October 1, 2025, Florida sellers must disclose in writing, at or before contract signing, any known flooding, flood insurance claims, and federal flood assistance (such as FEMA) related to the property (§689.302, Fla. Stat.).

Tip: get insurance quotes during the inspection period. Your lender will require a bound policy before closing.

Step 6: Title and Closing

A title company or attorney confirms the property has clear title, prepares documents and coordinates closing. Florida charges specific taxes (Florida Department of Revenue): - Documentary stamp tax on the deed: $0.70 per $100 of the price. - If you finance: documentary stamp tax on the note and mortgage of $0.35 per $100 of the loan, plus the nonrecurring intangible tax of 0.2% (2 mills) on the recorded mortgage.

Who pays each cost is set by your contract. By law, you must receive your Closing Disclosure at least three business days before closing (CFPB). Use that time to compare it with your Loan Estimate.

Step 7: File for Homestead (by March 1)

If the home is your permanent, primary residence, the homestead exemption can reduce its assessed value by up to $50,000. The first $25,000 applies to all taxes, and the second $25,000 does not apply to school taxes. You must own and live in the home on January 1 and apply by March 1 (Manatee County Property Appraiser).

November 3, 2026 ballot: Amendment 3 would raise the exemption for non-school taxes to $150,000 in 2027 and $250,000 in 2028, and it needs 60% voter approval. If it passes, people who are not Florida residents on December 31, 2026 would first receive the existing exemption, with the larger exemption starting in their fifth year (official amendment booklet, updated Sep 3, 2026). Ask a tax professional how timing applies to you.

Buying From Abroad? What Florida's SB 264 Says

Florida's SB 264 (2023) restricts property purchases by "foreign principals" connected to China, Russia, Iran, North Korea, Cuba, the Venezuelan regime of Nicolás Maduro, and Syria (Florida Senate). The definition includes people domiciled in those countries who are not U.S. citizens or lawful permanent residents. These buyers may not acquire property within 10 miles of a military installation or critical infrastructure. A limited exception allows one residential property of up to 2 acres that is more than 5 miles from a military installation, if the buyer holds a current non-tourist visa or asylum documentation (enrolled bill text). Some purchases require a sworn affidavit at closing. If this could apply to you, talk with a Florida real estate attorney before you make an offer.

Why Work With Luis

Luis Odon is a REALTOR® with Keller Williams Coastal Living II, serving buyers, sellers and investors across Lakewood Ranch, Bradenton, Sarasota, Parrish and Palmetto. Se habla español: I'm happy to help in Spanish.

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Luis Odon, REALTOR® · Keller Williams Coastal Living II · (941) 993-8311 · LuisfjosRealtor@gmail.com

Data is from the linked sources as of the dates shown and may change. This article is general information, not legal, tax, insurance or lending advice. Equal Housing Opportunity.