Florida homeownership involves significant financial preparedness beyond the down payment. Closing costs typically range from 2% to 5% of the purchase price, potentially adding thousands to the initial investment. Property taxes in Florida average around 0.97% of the home’s assessed value annually. Homeowners insurance is crucial and can be significantly higher in Florida than the national average due to hurricane risk; rates vary widely depending on location and coverage. Potential buyers should factor in ongoing maintenance costs, often estimated at 1% of the home’s value per year. Rising flood insurance costs are impacting affordability, particularly in coastal areas. Consider HOA fees, which can range from a few hundred to several thousand dollars annually, depending on the community. Florida’s homestead exemption offers property tax relief to permanent residents, but eligibility requirements apply.