On a $350,000 FHA purchase, our line-by-line estimate puts a Florida buyer's closing costs and prepaids at $13,295.59. About $1,900 of that is two state taxes on the new mortgage, and since state law sets them, you can figure them to the penny before you apply. The lender, appraisal, title and recording fees come from your Loan Estimate. Prepaids start your homeowners insurance and escrow account. A seller credit can pay a large share of the total.
Florida's taxes on the mortgage and the deed
Florida charges documentary stamp tax on the promissory note at $0.35 for every $100 of the loan (or portion of $100), and a nonrecurring intangible tax of 2 mills, which is 0.2% of the loan. Both are paid when the mortgage is recorded with the county clerk, and the buyer normally pays both because they're taxes on the buyer's loan.
| Loan amount | Doc stamps on the note | Intangible tax | Both taxes |
|---|---|---|---|
| $250,000 | $875.00 | $500.00 | $1,375.00 |
| $300,000 | $1,050.00 | $600.00 | $1,650.00 |
| $350,000 | $1,225.00 | $700.00 | $1,925.00 |
| $400,000 | $1,400.00 | $800.00 | $2,200.00 |
The deed carries its own doc stamp tax of $0.70 per $100 of the price, or $0.60 per $100 on a single-family home in Miami-Dade County. On a $350,000 sale that's $2,450, or $2,100 in Miami-Dade. Florida purchase contracts usually assign the deed stamps to the seller, so most buyers never see that line as their own cost.
The other costs on your Loan Estimate
Beyond the two taxes, a Florida buyer's Loan Estimate normally lists:
- Lender charges: origination, processing and underwriting, plus the credit report.
- Appraisal: the lender's independent opinion of the home's value.
- Title: the lender's title insurance policy, the settlement or closing fee, and the owner's title policy when the contract or local custom puts it on the buyer.
- Recording: county clerk charges to record the deed and the mortgage.
- Inspections: a home inspection, plus the four-point inspection insurers often want on an older home and a wind mitigation inspection that can lower your insurance premium.
Prepaids sit on top of those fees. You pay the first year of homeowners insurance, interest from closing day to the end of that month, and an opening deposit into your escrow account. Florida property taxes are paid once a year for the year just ended, so the seller credits you their share of the current year's taxes at closing, and that credit lowers what you bring.
Your lender has to send the Loan Estimate within three business days of your application, and it's the page to compare line by line between offers.
A worked example on a $325,000 FHA home
A buyer purchases a $325,000 single-family home with FHA and 3.5% down. The base loan is $313,625 (96.5% of the price). The 1.75% upfront mortgage insurance premium of $5,488.44 is financed, so the recorded loan is $319,113.44, and Florida taxes it at that amount.
| Item | Amount |
|---|---|
| Doc stamps on the note: 3,192 units of $100 × $0.35 | $1,117.20 |
| Intangible tax: $319,113.44 × 0.2% | $638.23 |
| Florida taxes on the loan | $1,755.43 |
| First year of homeowners insurance ($283 × 12) | $3,396.00 |
| Taxes plus insurance | $5,151.43 |
Say the seller agrees to a 3% credit, $9,750 on $325,000. It pays both Florida taxes and the full year of insurance with $4,598.57 to spare for the lender, appraisal, title and recording lines. FHA lets the seller credit go as high as 6% of the price, $19,500 here, when the fees run higher.
The cash to close guide builds the full $350,000 FHA purchase behind the $13,295.59 figure, including the opening escrow deposit and prepaid interest, and shows a 3% seller credit plus FHA 100% financing bringing the buyer's check down to about $2,800.
Who can pay your closing costs
All four loan programs let someone else carry part of the bill. The seller can pay up to 6% of the price on FHA and USDA. VA lets the seller pay your normal closing costs and add up to 4% of the home's value in concessions on top. On a Conventional loan the seller limit is 3% with less than 10% down, 6% with 10% to 25% down, and 9% with 25% or more down.
Family can gift money toward closing costs on all four programs with a signed gift letter. Florida Housing's assistance programs, including Hometown Heroes, can help with closing costs as well as the down payment. A seller credit can only pay real costs, on every program, so ask for the dollar figure your Loan Estimate supports.
Put your price and down payment into the cash to close calculator to see the Florida taxes, prepaids and seller credit added up for you. Once you have a home picked out, call AAA Capital Funding at 888-601-8344 with the address and price, and we'll price your closing costs and tell you what credit to ask the seller for.