Florida Closing Costs in 2025 | Every Loan Type Guide

This article will cover a detailed breakdown of these costs and provide information on specific Florida programs to help reduce them.

Breakdown of Florida Closing Costs

Closing costs in Florida cover nearly every upfront fee to purchase or refinance a home, excluding the down payment.

Major Fees

• Real Estate Commissions (5 - 6%): The seller pays the agents.

• Prepaid Taxes and Insurance ($1,000 - $4,500 +): Covers advance property taxes and homeowners insurance payments.

• Title Search and Title Insurance ($300 - $2,500 +): Ensures the property can be legally transferred.

• Escrow Fee ($350 - $1,000 +): Paid to a third-party escrow company.

• Home Appraisal Fee ($500 - $1,000 +): Evaluates the home's market value.

Lender Fees

• Loan Origination Fee (0 - 1%): Charged by the lender for processing the loan.

• Discount Points (0 - 1%): Optional fees to lower your mortgage rate.

• Processing/Underwriting Fees ($300 - $900 each): Administrative costs for processing the loan.

Third-Party Fees

• Credit Report Fee ($35): Cost to pull your credit reports.

• Home Inspection Fee ($300 - $500): Assesses the home's condition.

• Attorney Fee ($400 +): Charged in states where a real estate attorney is required.

• HOA Transfer Fee: Applicable for homes within a homeowners association.

Government-Backed Loan Fees

• FHA Loan: Upfront mortgage insurance premium (1.75% of the loan amount).

• VA Loan: VA funding fee (1.4 - 3.6% of the loan amount).

• USDA Loan: Upfront mortgage insurance fee (1% of the loan amount).

Florida-Specific Ways to Reduce Closing Costs

25 grants and programs in Florida can help you save thousands to buy a home in Florida. Below, we've previewed 5 of these ways that you can buy a home in Florida without closing costs:

Florida Hometown Heroes Program

• Assistance: Up to $35,000 for down payments and closing costs.

• Benefits: Lower first mortgage interest rate for eligible borrowers.

• Requirements: Must be a first-time homebuyer, employed in or serving the community where you intend to purchase, meet certain income limits, have a credit score of at least 620, and complete a homebuyer education course.

Miami-Dade Advocacy Trust Grant

• Assistance: Up to $28,500 as a no-interest, no-payment loan for down payment and closing costs. The loan is forgiven after 20 years.

• Requirements: Must be a first-time homebuyer in Miami-Dade County, contribute personal funds toward the purchase, complete a homebuyer education course, and meet income and purchase price limits.

Hallandale Beach Community Grant

• Assistance: Up to $100,000 for down payment and closing costs. This is a no-interest loan that is forgivable after 10 years.

• Requirements: Must invest $2,000 of personal funds toward the down payment and purchase a property within the designated reinvestment area that passes a home inspection.

Own a Home Opportunity Grant Program

• Assistance: Up to 5% of the total loan amount for down payment or closing costs.

• Requirements: Must meet specific financial criteria, including income and purchase price limits, have a credit score of at least 640, and purchase eligible properties like single-family homes, condos, or townhouses.

Own a Home Opportunity Program

• Assistance: Up to $7,500 in Charlotte, Collier, DeSoto, Lee, or Sarasota counties; up to $10,000 in Palm Beach County as a zero-interest, deferred loan.

• Requirements: Must be a first-time homebuyer, meet income and purchase price limits, complete a homebuyer education course.

General Methods for Reducing Closing Costs

Here are some more tools to lower your closing costs:

• Lender Credits: The lender covers some closing costs in exchange for a higher interest rate.

• Seller Concessions: The seller covers part of the closing costs, usually in exchange for a higher purchase price.

• Rolling Costs into the Loan: Adding the costs to your loan balance, applicable only for refinancing.

Get Help Reducing Your Closing Costs

If you're looking to save thousands on closing costs or buy a home with 0% down, reach out to us today.

Our experts can help you determine which grants and programs you qualify for, making your home-buying process more affordable and accessible.

Contact us to learn more and take the first step toward owning your dream home in Florida.

FAQ About Closing Costs in Florida

What are closing costs?

Closing costs are fees required to finalize your mortgage, typically ranging from 2-5% of the loan amount. They include appraisal fees, title insurance, and attorney fees.

Can closing costs be negotiated?

Yes, many closing costs are negotiable. Borrowers can shop around for the lowest fees and negotiate with lenders to reduce certain costs.

Are there grants available to help with closing costs in Florida?

Yes, various grants and programs in Florida, such as the Florida Hometown Heroes Program and the Miami-Dade Advocacy Trust Grant, can help reduce closing costs.

What is the average amount of closing costs in Florida?

Closing costs typically range from 2-5% of the loan amount. For example, on a $350,000 home, closing costs could be $7,000 to $17,500.

What does the Florida Hometown Heroes Program offer?

The Florida Hometown Heroes Program offers up to $35,000 in assistance for down payments and closing costs for eligible first-time homebuyers.

Can closing costs be rolled into the loan?

Yes, for refinancing, closing costs can often be rolled into the loan balance. However, this option is not typically available for purchase transactions.

What are prepaid taxes and insurance?

Prepaid taxes and insurance are advance payments for property taxes and homeowners insurance, usually covering 6-12 months and paid at closing.

Are real estate commissions part of closing costs?

Yes, real estate commissions are part of closing costs, typically paid by the seller and ranging from 5-6% of the home sale price.

How can I reduce my closing costs?

You can reduce closing costs by negotiating with your lender, shopping for the best rates, using lender credits, and applying for grants and assistance programs.

What is a Loan Estimate?

A Loan Estimate is a document provided by lenders that outlines the terms, interest rate, and all associated closing fees of a mortgage offer, allowing borrowers to compare costs between different lenders.