Florida is the fastest-growing state in the country, and a significant portion of that growth comes from buyers relocating from the Northeast, Midwest, and California. If you're moving from another state, the mortgage process is mostly the same. But Florida has specific rules around property taxes, insurance, and homestead exemption that you need to understand before closing.
Getting Pre-Approved Before You Arrive
Relocating buyers are often shopping from a distance. Getting pre-approved before you start making offers is essential. In competitive Florida markets, sellers won't accept offers without a pre-approval letter, and some require a DU approval: a fully underwritten pre-approval from Fannie Mae's automated system.
A DU approval is the strongest pre-approval you can get. It's reviewed by Fannie Mae's Desktop Underwriter before you've even found a property, which gives sellers real confidence that you'll close. Here's what can still trip up a closing even after a strong pre-approval.
Florida's Property Taxes: What Relocators Underestimate
Florida has no state income tax, which attracts many buyers. But property taxes can be higher than expected, particularly in Tampa, Miami, and Orlando markets. The effective property tax rate in Florida averages around 0.8 to 1.1 percent of assessed value, in line with the national average. But assessed values are high in popular markets.
Florida also has a Save Our Homes cap that limits how much assessed value can increase for homestead properties each year, currently capped at 3 percent or the rate of inflation, whichever is lower. As a new buyer, you won't have this cap in year one. Expect your first full-year tax bill to reflect full market value, then benefit from the cap going forward.
Homestead Exemption for Florida Residents
Florida's homestead exemption reduces the assessed taxable value of your primary residence by $25,000. For non-school taxes, another $25,000 exemption applies above $50,000 in value. For a $400,000 assessed home, this can reduce the taxable value by up to $50,000, saving $500 to $800 per year depending on the county millage rate.
To qualify, the property must be your primary residence as of January 1. You apply with the county property appraiser's office by March 1 of the year following your purchase. Buying in late 2026 means you'd apply by March 1, 2027 and receive the exemption on your 2027 tax bill. See Florida's full range of homeowner tax advantages once you're settled in.
Planning Your Florida Relocation?
We've helped hundreds of out-of-state buyers navigate pre-approval, insurance requirements, and Florida-specific paperwork. Get your approval letter before you start touring.
Homeowner's Insurance: Florida's Biggest Surprise
Florida's homeowner's insurance market is the most expensive in the country. Average annual premiums range from $3,000 to $8,000 or more, depending on the property location, age, construction type, and proximity to the coast. Buyers coming from states where $800 per year is normal are often caught off guard.
Flood insurance is separate from homeowner's insurance and required for homes in designated FEMA flood zones. In coastal and low-lying areas of Tampa, Fort Myers, and South Florida, flood insurance can add $1,500 to $5,000 or more annually.
Out-of-State Employment and Income Verification
If you're keeping your current job and working remotely after the move, your lender needs to verify that your employer allows remote work from Florida. A letter from your employer confirming the arrangement is typically required.
If you're changing jobs to one in Florida, timing matters. Most lenders want to see a new job offer letter and potentially a pay stub or two before closing. Gaps in employment or last-minute job changes can delay or derail a closing. The sooner you get pre-approved and document your income situation, the smoother the process goes.
