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Buy a Home in Orlando: 2025 Guide
- Aaron Polk | BS Economics/Mathematics + MBA Finance
- 2 days ago
- 8 min read
Updated: 17 hours ago
Quick Answer: Buy a House in Orlando (2025)
Start with a pre-approval with a mortgage broker.
Closing typically takes 18-30 days from having your offer accepted to you receiving the keys.
Get a homeowner’s insurance quote early. Your mortgage broker should connect you with an insurance agent.
When you buy a house in Orlando, you will pay state taxes as part of your final closing costs, which will be roughly 0.55% of the loan amount.
When you want to buy a home in Orlando, know that the region is a practical choice for families weighing space, schools, and lifestyle against monthly cost. The metro attracts healthcare, hospitality, aerospace, and tech workers, and the 2025 market looks far more balanced than the frenzy of recent years. That creates an opening for prepared buyers: more time to compare homes, more opportunities to negotiate, and, if you plan financing well, manageable payments even with Florida’s unique insurance and tax landscape.
This guide keeps things straightforward: what’s happening in 2025, how to budget accurately, which loan options fit standard buyer profiles, and the exact Florida fees many shoppers forget to include when running numbers.
Buying a Home in Orlando in 2025: What Smart Buyers Should Expect
A Market Moving Toward Balance
Homes are spending longer on the market statewide than during the boom, as inventory improves and buyers become rate-sensitive. That dynamic tends to increase buyer leverage for credits, repairs, or rate buydowns, though results still vary by zip code and property type.
Loan Limits You Can Plan Around
For most one-unit homes nationwide in 2025, the conforming (conventional) loan limit is $806,500. Above that, you’re in jumbo territory, which often means tighter documentation and reserve requirements.
If you’re weighing FHA in the Orlando area (Orange/Osceola/Seminole/Lake), the 2025 FHA 1-unit limit is commonly listed in the $524,225 range (higher for 2–4 units). Always verify for your specific county and multi-unit plans.
Insurance Is Still A Budget Driver
Florida remains one of the costliest states for homeowners' insurance, with 2025 roundups showing averages that can easily top $5,700/year for standard coverage, depending on location, construction, and roof age. Some reports show modest stabilization this year, but premiums remain a key part of the monthly picture. Get quotes early.
Property Taxes And Homestead Protections
Florida’s Homestead Exemption can lower the taxable value of a primary residence and lock in the Save Our Homes assessment cap, which generally increases annually by 3% or CPI (whichever is lower). In 2025, several county offices note the cap at 2.9%. New buyers should also plan for reassessment at sale, which can raise taxes compared with a seller’s prior bill. File by the county deadline.
Your All-In Budget: What Monthly Really Looks Like
A realistic 2025 Orlando budget includes:
Principal & Interest
Your interest rate depends on credit, loan type, down payment, and whether you buy points or use a temporary buydown. (We’ll show you breakeven math.)
Property Taxes
Use the current millage for the address, then apply Homestead rules for primary residences after move-in. New owners should not rely on the seller’s tax bill.
Homeowners Insurance
Price multiple carriers and ask about wind-mitigation credits and roof age. Insurance frequently shifts the affordability boundary more than the rate itself.
HOA/Condo Dues
In amenity-rich neighborhoods, dues can materially change your qualifying and monthly costs.
Mortgage Insurance (When Applicable)
FHA MI or conventional PMI should be modeled both monthly and upfront (if eligible) to see which lowers your total cost over the period you expect to keep the loan.
Tip
Ask us to quote three scenarios for each home you love: (a) no points, (b) permanent points, (c) a 2-1 buydown funded by seller credits. We’ll show you the breakeven in months, just the headline rate.
Florida Closing Costs You Shouldn’t Miss
Florida has state-level transaction taxes that buyers often forget to pencil in:
Doc Stamps On The Deed
Typically $0.70 per $100 of the purchase price (outside Miami-Dade’s special rules).
Doc Stamps On Notes/Mortgages
$0.35 per $100 of the loan amount (capped on certain unsecured notes; check specifics with your title company).
Nonrecurring Intangible Tax
0.20% of the loan amount (a one-time mortgage tax at closing).
You’ll also see lender fees (origination/underwriting if applicable), appraisal, credit report, title insurance, settlement, and recording costs. We’ll produce a cash-to-close estimate that includes down payment, taxes, third-party fees, and prepaids—then optimize with seller credits where appropriate.
Choosing the Right Loan in Orlando
Conventional (Conforming) Up to $806,500
Best fit for buyers with solid credit and at least 3–5% down, who want cancellable PMI and maximum long-term flexibility. Conforming pricing can be very competitive, especially when credit scores are strong and debt-to-income (DTI) is well managed. FHFA.gov
FHA: County Limit Applies (Often $524,225 For 1-Unit In The Orlando Area)
Applicable when credit scores or down payments are tighter. FHA permits 3.5% down for many borrowers and allows higher DTIs than conventional in some cases, but includes upfront and monthly mortgage insurance. If you expect to refinance within a few years, compare FHA’s upfront cost vs. a conventional PMI path. FHA
VA: For Eligible Service Members And Veterans
Zero down, no monthly mortgage insurance, and competitive pricing. Condos and new builds require careful documentation; we’ll help with approvals and funding-fee options.
Jumbo: Above $806,500
Expect stronger asset verification, reserve requirements, and possibly two appraisals. Some portfolio lenders offer attractive initial ARM structures that can make sense if you plan to refinance or sell earlier in the term. FHFA.gov
Should You Buy Points in 2025?
Points lower your rate but cost cash up front. Whether it’s smart depends on:
Breakeven Timeline
If the cost of points divided by your monthly savings is 60 months, you’d need to keep the loan for at least five years to benefit.
Refi Outlook
If you anticipate refinancing sooner (because rates fall or your income/credit improves), a temporary buydown or no-point structure can preserve flexibility.
Seller Credits
In a more balanced market, credits can fund points or buydowns without raising your cash to close. Florida’s insurance costs have nudged many sellers to negotiate the use of that to reduce the payment.
We’ll show you both temporary and permanent paths side by side with clear breakevens (12, 24, 36 months).
Homestead, Save Our Homes, and Filing Basics
For a primary residence, Florida’s Homestead framework can reduce the taxable value and limit future assessment increases (the “Save Our Homes” cap). Practical highlights:
Assessment Cap
Annual increase limited to 3% or CPI (whichever is lower). For 2025, many county sources list the cap at 2.9%. pbcpao.gov
Portability
Moving from one Florida homestead to another may allow you to transfer some of your SOH benefit; deadlines apply. Florida Department of Revenue
Filing
Apply with the county property appraiser (typically by March 1 for the tax year). New owners must file; the seller’s exemption does not carry over. Florida Department of Revenue
Insurance: Why Two Similar Homes Can Produce Very Different Payments
In 2025, Florida’s average homeowners' premiums remain among the nation’s highest, even as regulators and market changes bring pockets of stabilization. Rates vary by roof age and condition, wind-mitigation features, distance from the coast or lakes, prior claims, and carrier appetite in your ZIP code. Several reputable surveys place Florida’s typical premiums in the $5,700–$5,800 range for standard coverage; individual quotes can be lower or much higher. Always get address-specific estimates during your loan shopping.
Two Insurance must-knows:
Flood Is Separate
Standard homeowner policies don’t include flood. Even if a property lies outside FEMA high-risk zones, localized flooding can still occur. Model both NFIP and private flood where appropriate.
Condo Buyers
Review the building’s master policy, reserves, and any special assessments. Lender and insurer requirements can change the numbers quickly.
Where to Look in and around Orlando (Financing Considerations Included)
Lake Nona / Medical City
Newer construction often means better wind mitigation and roof ages that can help insurance quotes.
Winter Garden / Horizon West
Family-friendly master-planned areas with varied HOA structures compare dues carefully.
Oviedo / East Orlando
University-adjacent neighborhoods with a mix of single-family and townhomes; watch for condo warrantability when buying attached units.
Condos require careful building reviews for both financing and insurance; expect higher HOA dues and distinct underwriting.
(Inventory and pricing trends shift monthly; use current market stats from local Realtor sources when you’re ready to write offers.)
Step-by-Step: How to Buy in Orlando (2025)
Talk To A Mortgage Broker Early
Get a valid pre-approval (documents reviewed) for the correct loan type, Conventional, FHA, VA, or Jumbo, and request scenarios with and without points and buydowns.
Price Your Whole Payment
Include realistic insurance and property taxes for the specific address; avoid relying on seller bills.
Know Your Loan Limits
Estimate Florida Closing Taxes
Plan for deed doc stamps, note/mortgage doc stamps, and the 0.20% intangible tax.
Leverage Credits
Ask your agent to negotiate seller credits for repairs or interest-rate buydowns, especially in submarkets with longer days-on-market.
Lock Strategically
Decide on points vs. a temporary buydown using time-in-loan assumptions and potential 2026–2027 refi windows.
File Homestead After Closing
Protect your future tax assessments and review portability if you’re moving from another Florida homestead. Florida Department of Revenue
Quick Comparisons: FHA vs. Conventional vs. Jumbo (Orlando)
FHA
Suitable for a limited down payment or credit rebuilding. Factor in upfront and monthly MI; compare to conventional once your scores improve. $524,225 county limit applies.
Conventional
Cancellable PMI with equity, strong fit for buyers with higher credit scores, and highly competitive rates up to $806,500.
Jumbo
Above $806,500. Expect more documentation, ARM options, and sometimes two appraisals. Great for higher-priced purchases with the right assets and income.
FAQs
Is 2025 A “Good Time” To Buy a House in Orlando?
Yes, Orlando has shifted more towards a buyer market due to lower home prices and new supply of homes. The shift toward a buyer’s market can help you negotiate valuable credits, repairs, or buydowns, mainly where inventory has grown.
What Surprises Buyers The Most In Florida?
State mortgage taxes at closing and homeowners insurance variability. With Orlando being more inland, the insurance premiums aren’t as high as coastal cities. When estimating your total cash-to-close, include doc stamps and intangible tax, and get real quotes for homeowners (and flood, if needed).
How To Buy A House In Orlando For The First Time?
Talk to an experienced Mortgage Broker to guide you through the different First-Time Homebuyer programs available to you. These programs include 0% down and a portion of your closing costs paid for with the Florida Hometown Heroes program.
How Do Homestead And Save Our Homes Help?
Once you establish Homestead, the Save Our Homes cap limits future assessed value increases (generally 3% or CPI). That helps long-term owners manage taxes, though new buyers should expect a reassessment at sale. In 2025, sources note a 2.9% cap. File by the county deadline. jeffersonpa.net
Make Your 2025 Orlando Purchase Simple
A successful Orlando purchase in 2025 comes down to three things: accurate budgeting, the proper loan structure, and timely negotiation. When you price the whole payment, including Florida insurance and tax nuances, you can shop with confidence, compare neighborhoods clearly, and use credits to lower your rate or reduce cash outlay.
Get a precise, no-pressure pre-approval today and compare FHA, Conventional, VA, and Jumbo options side by side with AsertaLoans Inc.
