Buying a Home in Florida With Cash

Closing costs a cash buyer avoids

On a financed purchase, Florida charges the buyer documentary stamp tax on the note at $0.35 per $100 of the loan and intangible tax at 0.2% of the mortgage. With a $300,289 loan on a $375,361 home, that is about $1,051 and $601. A cash buyer pays neither.

Cash also removes:

• Lender fees: origination, underwriting, credit report and any points.
• The lender's title policy and its endorsements.
• Required escrow deposits for taxes and insurance.
• The appraisal fee, unless you order one yourself.

The deed stamp tax of $0.70 per $100 of the price, about $2,628 on the same home, is usually the seller's expense in any case, so it is not a saving specific to cash.

Costs cash buyers still pay

• Owner's title insurance. Florida sets the premium by promulgated rate. In Miami-Dade, Broward and some other counties the buyer customarily pays it; elsewhere the seller usually does. Buy it even without a lender, since it protects you against defects in the title that the search missed.
• Settlement and recording fees charged by the title company and county.
• Inspections: general, wind mitigation, 4-point on older homes and WDO for termites.
• Survey, which a lender would have required and you should still get.
• HOA and condo charges: estoppel fees and any capital contribution.
• Homeowners and flood insurance from the day you close.

When I run the numbers with a cash client, these items together are smaller than on a financed deal, but they are not zero, and the title custom in your county decides the biggest one.

Proof of funds and the paperwork title companies ask for

Sellers expect a cash offer to include proof of funds: a recent bank or brokerage statement, or a letter from the institution, showing enough to cover the price and closing costs. Black out account numbers you do not want shared.

Before closing, expect the title company to ask for:

• Identification for everyone taking title, and documents for any trust or company buying.
• Source of funds, especially when money arrives from abroad or from several accounts.
• Wire details in time for funds to arrive and clear before the closing appointment.

Move the money into a US account well ahead of closing if it is coming from overseas. International wires and currency conversions can take days, and title companies will not record the deed until funds have cleared. Always confirm wiring instructions by phone with the title company at a number you found independently. Fraudsters target cash buyers with fake instructions because the amounts are large.

The checks a lender would have done, and you now have to

Lenders protect their collateral, and that protects you too. Without a loan, these become your choice:

• Appraisal: optional, but an independent value is cheap compared with overpaying on an unusual property.
• Flood insurance: no lender will force it in an A or V zone. The flood risk is the same. Citizens policyholders face their own flood requirement, phased in by dwelling value, reaching all policies on January 1, 2027.
• Homeowners insurance: nobody requires it. Going without coverage on a Florida home means carrying hurricane and fire risk alone.
• Condo review: a lender would have reviewed the building's budget, reserves and litigation. Cash buyers often buy in buildings lenders avoid, so read the association documents yourself during the 7-day review period resale buyers get, excluding weekends and legal holidays.

Making the offer and closing quickly

A cash offer removes the financing contingency and the appraisal risk, which is why sellers value it. It usually gets you a better price or better terms, though a discount is never automatic. A larger escrow deposit, a short inspection period you can actually meet and a flexible closing date all add weight to a cash offer without raising the price. Sellers also look at the proof of funds closely, so send it with the offer instead of waiting to be asked. Statewide values have slipped 0.9% over the past year for all homes and 3.9% for condos, which gives cash buyers extra leverage on condos with long market times.

On the Florida Realtors and Florida Bar AS IS contract, keep the inspection period even when paying cash. It is your right to cancel if inspections or insurance quotes come back badly. Then the timeline depends on title work: with a clear title and quick inspections, cash closings can happen within a few weeks. Condo and HOA approvals, estoppel letters and open permits are the usual delays.

Buying from a foreign seller, or buying as a foreign buyer

When the seller is a foreign person, FIRPTA requires the buyer to withhold 15% of the price and send it to the IRS. The title company handles the paperwork, but the legal duty is the buyer's. There are reduced rates when the buyer will live in the home: 10% when the price is $1,000,000 or less, and 0% at $300,000 or less, if the buyer meets the residence requirements.

Foreign buyers can buy for cash with no US citizenship or residency, and many do, since foreign national loans typically need 30% to 40% down. A purchase does not provide a visa. Buyers domiciled in China, Cuba, Iran, North Korea, Russia, Syria or Venezuela should check Florida SB 264 limits near military sites and critical infrastructure before signing; Chinese domiciliaries face broader restrictions. This isn't legal or tax advice.

Getting money back out later, and property tax

Some buyers pay cash to win the house and plan to take out a mortgage afterward. Some loan programs allow a refinance soon after a cash purchase, with conditions on documentation. Ask a lender before you close, not after, so the closing paperwork fits their rules. Keep the settlement statement and records showing where the purchase money came from, since a lender will ask for both.

Paying cash does not change property tax. The assessment resets to market value after your purchase. If the home is your permanent residence, file for homestead by March 1 of the following year for up to $51,411 off assessed value in 2026 and a cap on increases of 3% or CPI. Amendment 3, which would change homestead and non-homestead rules, is on the November 3, 2026 ballot with a 60% threshold.