The Average Cost of a 3/2 Home in Miami-Dade is $600,000: Here’s What You Need to Qualify for a Home in This Price Range

The Miami real estate market continues to be one of the most desirable in the country, and if you're looking to buy a 3-bedroom, 2-bathroom home in this vibrant city, the current average price is around $600,000 as of late 2024 (Redfin, 10-2024). While the price may seem high, there are several financing options available, such as FHA loans, that make purchasing a property in Miami more accessible than you might think. Here’s how you can make it happen.

With an FHA loan, you only need a 3.5% down payment, which for a $600,000 home comes out to $21,000. This option is ideal for first-time buyers or those who prefer not to put down a large amount of cash upfront. After this down payment, the loan amount you'd be financing is $579,000.

At an interest rate of 5.8%, your monthly principal and interest payment would be approximately $3,398 on a 30-year loan. In addition to the basic mortgage payment, owning a home comes with other costs, such as property taxes, homeowners insurance, and mortgage insurance. Property taxes in Miami are typically around 1.2%, which would add about $600/month. Homeowners insurance in Florida tends to be higher due to climate risks, and for a home of this size, it could range from $300 to $400/month (according to Joel Gonzalez of Mor Lending). Additionally, since this is an FHA loan, you’ll also need to account for about $150/month in mortgage insurance premium (MIP).

When you add all these costs together, your total monthly payment will range between $4,448 and $4,548. For a home in one of the country’s most desirable markets, this is a solid investment, especially considering that property values in Miami continue to appreciate.

Now, what income do you need to qualify for this home? FHA loans are quite flexible when it comes to debt-to-income (DTI) ratios. According to Joel Gonzalez of Mor Lending, FHA loans allow up to 45% of your income to go toward housing payments and up to 56% toward total debts. To cover a $4,300 housing payment, you would need a gross monthly income of approximately $9,560, which translates to about $115,000 per year. The best part is that this income can be combined among multiple applicants, such as a spouse or partner, making it easier to meet the income requirement. As long as your other debts (such as car loans or credit cards) don’t exceed $1,000/month, you should be in a good position to qualify.

If you’re ready to take the step toward homeownership in Miami, here’s what you need to do next. First, save the $21,000 for the down payment and plan for closing costs, which typically range from 2% to 5% of the home’s price. Review your debts to ensure you meet FHA loan debt-to-income guidelines, and check your credit score. FHA loans require a minimum score of 580, but a higher score can help you get better terms. Finally, get pre-approved with a trusted lender like Mor Lending to know exactly how much you can afford.

When you're ready to start your home search, I’m here to help. As an experienced real estate agent with eXp Realty, I’ll guide you through the process and help you find the perfect home in Miami’s competitive market. Whether you’re a first-time buyer or looking to move, I’ll be with you every step of the way.

If you’re ready to take the next step toward homeownership, contact me, William Gartin with eXp Realty, at 305-842-6097, and let’s make your dream of owning a home in Miami a reality.