Mortgage Myths, Florida Edition: What Actually Stops Buyers (and What Doesn't)

By Jorge R. Regalado, CEO — NEWLOANCO · Oct 29, 2026 · 5 min read

If you have been putting off buying a home in Florida because of something you heard at work, on social media, or at a family dinner, you are not alone. Myths travel faster than facts, and some of the most stubborn ones stopped being true long ago. Here are the five I hear most often across Miami-Dade, Broward, and Palm Beach — and the truth behind each one.

Myth #1: "You need 20% down to buy a home"

This myth comes from a real rule of thumb: 20% down avoids private mortgage insurance (PMI). Good advice for some buyers — terrible advice if it keeps you renting while prices and rents keep moving.

The plain truth: Qualified buyers regularly purchase with far less. Conventional loans can start at 3% down, FHA loans at 3.5%, and eligible veterans and rural buyers may qualify for VA or USDA loans with no down payment at all. PMI, when it applies, is usually temporary — it can fall away as you build equity. The right question is not "20% or nothing," but "which down payment fits my budget and still leaves a cushion after closing?"

Myth #2: "You need perfect credit to get a mortgage"

Many buyers reject themselves without ever talking to a lender, assuming one late payment or a modest score ends the conversation.

The plain truth: There is no single credit score that unlocks homeownership. Programs are designed for different credit profiles, and lenders look at the whole picture — income, debts, payment history, and savings, not just one number. A lower score may mean more documentation or a larger down payment, but it is rarely an automatic no. And a few months of focused improvement can change your options more than you would expect.

Myth #3: "Florida insurance makes buying impossible"

There is a kernel of truth here: homeowners insurance in Florida costs more than in most states, and lenders count that premium when they qualify you.

The plain truth: Expensive is not the same as impossible. Insurance is a line item to plan around, not a wall. Shopping your coverage, choosing a home with a newer roof, and asking about wind-mitigation credits can all lower the premium. Your lender should show you the payment with taxes and insurance from day one.

Myth #4: "Condos can't be financed"

South Florida runs on condos, so this myth scares many buyers out of homes they can afford.

The plain truth: Condos are financed every day in Florida. What changes is the homework: the lender also reviews the condo project — its budget and reserves, insurance, any litigation, and how many units are owner-occupied. Some buildings do not fit standard guidelines and are considered non-warrantable; those need a different loan program, not a funeral. Have the building reviewed early, before you fall in love with the unit.

Myth #5: "Renting is always cheaper than buying"

Sometimes it is — for a short stay or a season of life when flexibility matters most, renting can be the right call.

The plain truth: Over time, the math often flips. Rents across South Florida keep climbing, and every rent check builds your landlord's equity, not yours. Owning fixes your principal and interest payment and builds equity that is yours. Compare your actual rent to the full ownership payment, over the years you realistically plan to stay — that honest comparison, not a slogan, should drive the decision.

The bottom line

Most of what stops Florida buyers is not a rule — it is a rumor. Before you rule yourself out, get your real numbers from a lender who will walk through them with you.

Jorge R. Regalado, Mortgage Broker, NMLS 1243458 · NEWLOANCO, NMLS 1369124 · 305-962-1170. Equal Housing Opportunity. This article is for general education only and is not a loan offer, rate quote, or commitment to lend. All loans are subject to credit review, underwriting approval, and program eligibility; down-payment assistance programs are subject to eligibility and funding availability, which change over time.