First-Time Homebuyer Guide — Palm Beach, FL 2026
Palm Beach is a premium Florida market where FHA financing provides maximum purchasing power at just 3.5% down
Buying Your First Home in Palm Beach, FL
Buying your first home in Palm Beach, FL takes preparation — but the right loan program can put you in a home for far less than most buyers expect. The median home price in Palm Beach is approximately $4,500,000, which means a minimum FHA down payment of $157,500 or a conventional 3% down of $135,000. Palm Beach is a premium Florida market where FHA financing provides maximum purchasing power at just 3.5% down. The Palm Beach County FHA limit is $667,000, giving FHA buyers access to higher loan amounts at just 3.5% down compared to buyers in floor-limit counties. Florida's Hometown Heroes program can provide up to $35,000 in down payment and closing cost assistance for eligible Palm Beach buyers.
Down Payment Options for Palm Beach Home Buyers
Based on Palm Beach's median home price of $4,500,000.
| Loan Type | Down Payment | Amount | Est. Monthly P&I |
|---|---|---|---|
| VA Loan | 0% | $0 | Varies by entitlement |
| USDA | 0% | $0 | Varies by address |
| FHA | 3.5% | $157,500 | $28,170/mo* |
| Conventional | 3% | $135,000 | $28,440/mo* |
| Conventional | 5% | $225,000 | $28,440/mo* |
| Conventional | 20% | $900,000 | $23,350/mo* |
*Payment estimates are principal and interest only at approximate 2026 market rates. Does not include property taxes, insurance, or mortgage insurance. Contact us for a precise payment quote.
USDA not available in Palm Beach proper — check rural outskirts.
VA available to eligible veterans regardless of location.
Based on Palm Beach's median home price of $4,500,000, here's what different down payment amounts look like in practice:
FHA (3.5% down): $157,500 down on a $4,500,000 home. FHA requires a minimum 580 FICO. You'll pay 1.75% upfront MIP ($76,000) and approximately 0.55% annual MIP, which adds about $1,990/month to your payment.
Conventional (3% down): $135,000 down. Requires 620+ FICO. PMI typically 0.5–1.0% annually and drops off once you reach 20% equity — unlike FHA MIP on most loans.
Conventional (5% down): $225,000 down. Better PMI rate than 3% down. Strong choice for buyers with 680+ FICO who want to minimize ongoing mortgage insurance.
Conventional (20% down): $900,000 down — no PMI, best rate pricing, estimated P&I approximately $23,350/month at current rates.
VA (0% down): $0 down for qualified veterans and active-duty buyers. 2.15% funding fee (first use, 0% down) can be financed into the loan. No monthly PMI.
USDA (0% down): $0 down for eligible rural addresses. 1.0% upfront guarantee fee and 0.35% annual fee.
Florida Hometown Heroes & DPA Programs in Palm Beach County
Florida first-time buyers in Palm Beach County have access to the Hometown Heroes program and other Florida Housing programs:
Florida Hometown Heroes: Up to 5% of purchase price (maximum $35,000) in down payment and closing cost assistance, structured as a 0% second mortgage deferred for 30 years or until sale/refinance. Available to Florida residents employed full-time in Florida in eligible occupations (healthcare, education, law enforcement, first responders, government, and others). Income limit approximately $152,760/year (120% of Palm Beach County AMI) for a 1–2 person household. Works with FHA, VA, USDA, or conventional first mortgages. Minimum 640 FICO.
Florida HFA Preferred / HFA Advantage: Reduced-rate conventional loans with optional 3–5% DPA second mortgage. For buyers who don't qualify for Hometown Heroes or want conventional-only products.
SHIP (State Housing Initiatives Partnership): County-administered DPA programs with additional assistance beyond Hometown Heroes in select counties. Availability varies — contact Palm Beach County Housing Authority for current Palm Beach SHIP program status.
Current program availability and income limits change — visit floridahousing.org or contact us for the latest details.
Hometown Heroes program funds are allocated periodically and may be temporarily depleted. Visit floridahousing.org to check current availability, or contact us — we track program availability daily.
2026 Loan Limits — Palm Beach County
| Loan Type | 2026 Limit |
|---|---|
| Conforming | $832,750 |
| FHA | $667,000 |
| VA | No limit (full entitlement) |
| Jumbo | Above $832,750 |
Loan limits verified against HUD FHA county limits and FHFA 2026 conforming loan limit announcement.
Your Palm Beach Home Buying Timeline
- 1Check your credit (today)
Pull your free credit report at AnnualCreditReport.com. FHA requires 580+ for 3.5% down. Conventional requires 620+. Dispute any errors.
- 2Get pre-approved (1–2 days)
Contact Tayton Capital for a pre-approval letter. We'll check income, credit, and assets and give you a firm number.
- 3Identify your program (week 1)
Based on your credit, income, and savings, we'll match you to the right loan: FHA, conventional, VA, USDA, or Hometown Heroes.
- 4Find a home and make an offer (varies)
With pre-approval in hand, your agent can submit competitive offers. Sellers in Palm Beach prefer pre-approved buyers.
- 5Under contract: appraisal + inspection (2–3 weeks)
We order the appraisal. You get a home inspection. If the appraisal comes in low, we'll walk you through options.
- 6Clear to close (week 3–4)
Underwriting reviews the file. We'll request any final documents. Clear to close typically comes 21–30 days from application.
- 7Closing day
Bring a cashier's check or wire for your down payment and closing costs. Sign. Get keys.
First-Time Homebuyer FAQ — Palm Beach, FL
Ready to Buy Your First Home in Palm Beach?
Tayton Capital walks every first-time buyer through the process from credit check to closing keys. We're licensed in Florida and close on schedule.
Closing remotely? We close fully by e-sign and mobile notary — no office visit required.