Buying in Downtown Orlando’s Central Business District comes with one big question: how much will you pay to close? You want a clear, local answer before you fall in love with a condo or high‑rise view. In this guide, you’ll learn what buyer closing costs usually include in Florida, what’s unique in Orange County, how your loan type changes the total, and a simple way to estimate your own number. Let’s dive in.
What closing costs include
Closing costs are the upfront fees, taxes, and prepaid items you pay in addition to your down payment. In Florida, you’ll typically see these categories:
- Lender fees: origination or points, underwriting and processing, appraisal, and credit report.
- Title and settlement: title search, lender’s title policy, optional owner’s policy, closing/settlement fee, and document recording.
- Government taxes and fees: Florida documentary stamp taxes, mortgage-related taxes, and recording charges.
- Third‑party services: appraisal, survey (if required), flood certificate, and any condo or HOA transfer documents.
- Prepaids and escrows: one year of homeowner’s insurance, prepaid interest, property tax proration, and escrow reserves.
- Mortgage insurance or guarantees: PMI on some conventional loans, FHA mortgage insurance, or a VA funding fee depending on your program.
- Miscellaneous: inspections, home warranty, and courier or overnight fees.
Who pays what can be negotiated and often follows local custom. In Orlando, make sure your purchase contract clearly states who pays the owner’s title policy and any association transfer fees.
Florida and Orange County fees
State taxes and recording
Florida closings commonly include:
- Documentary stamp tax on the deed. It is calculated from the purchase consideration and appears as a cents‑per‑$100 charge.
- Taxes on new mortgages. Florida charges taxes on mortgage instruments or an intangible tax based on the loan amount.
- Recording fees. Orange County collects fees to record the deed and mortgage.
Rates and labels can change. Confirm current amounts with your title company or closing agent and the Orange County Clerk before you finalize numbers.
Downtown Orlando condo factors
Downtown Orlando has many condo buildings, and resales often add association costs:
- Estoppel or resale certificate: typically $100 to $400, set by the association.
- Buyer application or approval fees: some associations charge processing or background check fees.
- HOA transfer fees: amounts vary by community.
- Special assessments or reserve items: review minutes and reserves early, since assessments may be due or prorated at closing.
Property tax proration
Orange County property taxes are billed annually. At closing, taxes are prorated based on your closing date. Your lender may also collect an escrow cushion for taxes and insurance, which affects cash to close.
Loan type and down payment impact
Your loan choice and down payment size change your fees and prepaids.
- Bigger down payment: lowers any percentage‑based lender fees, reduces the lender’s title premium tied to the mortgage amount, and can help you avoid PMI on conventional loans when you put 20% down.
- Conventional loans: standard lender fees and appraisal. If you put less than 20% down, you’ll likely pay PMI monthly, though some lenders offer single‑premium or lender‑paid options that shift costs to closing or into your rate.
- FHA loans: include an upfront mortgage insurance premium that is often about 1% to 2% of the loan amount. It can be financed or paid at closing, plus monthly mortgage insurance.
- VA loans: may require a funding fee that can range from 0% to 3.6% depending on service history and down payment. Many buyers finance this fee. VA loans do not require monthly mortgage insurance.
Ask your lender to show side‑by‑side options for points vs. rate, and whether program‑specific fees can be financed. It changes your monthly payment and your cash to close.
Estimate your closing costs
Here’s a simple approach you can use before you get official quotes.
Step A — quick percentage check
- For most financed purchases in Florida, plan on buyer closing costs of about 2% to 5% of the purchase price, not including your down payment.
- For FHA or VA, expect the same 2% to 5% plus any program‑specific upfront fees unless you finance them into the loan.
Step B — build a line‑item estimate
- Loan‑related fees: about 0.5% to 1.5% of the loan amount (origination and any points).
- Title, recording, and taxes: about 0.5% to 1.0% of the purchase price.
- Prepaids and escrow cushion: about 0.5% to 1.0% of the purchase price.
- Condo or HOA fees: typically $100 to $1,000 depending on the association.
- Inspections and appraisal: about $500 to $1,500 based on scope.
Add 1 through 5 for your working estimate, then confirm with written quotes from your lender and title company.
Step C — who to ask for exact numbers
- Lender: Loan Estimate with rate, points, lender fees, prepaid interest, PMI or program fees.
- Title company or closing agent: title premiums, documentary stamps, mortgage taxes, and recording charges specific to Orange County.
- Association manager or listing agent: estoppel and transfer fee schedules, application requirements, and timelines.
Examples: $400,000 Downtown Orlando condo
Below are illustrative scenarios to show how items add up. Actual amounts depend on your contract, loan, and the association.
Scenario A — Conventional, 20% down
- Lender fees, appraisal, credit: $3,000
- Title, recording, documentary stamp (estimate): $2,500
- Prepaids and escrow cushion: $1,800
- Condo estoppel and HOA fees: $350
- Inspections: $600
- Estimated buyer closing cost total: about $8,250 (about 2.06% of price)
Scenario B — FHA, 3.5% down
- Lender fees and FHA‑specific costs: $3,500
- Upfront mortgage insurance (if not financed): about 1.75% of loan, about $6,800
- Title, recording, documentary: $2,500
- Prepaids and escrow cushion: $1,800
- Condo estoppel and HOA: $350
- Inspections: $600
- Estimated total if upfront premium is paid at closing: about $15,550 (about 3.89%). If financed into the loan: about $8,750 (about 2.19%).
Scenario C — VA, 0% down, funding fee financed
- Lender fees and VA requirements: $3,000
- Funding fee: varies by eligibility and down payment and can be financed
- Title, recording, documentary: $2,500
- Prepaids and escrow cushion: $1,800
- Condo estoppel and HOA: $350
- Inspections: $600
- Estimated buyer closing cost total, excluding a financed funding fee: about $8,250
Typical line items and ranges
Use this as a planning guide, then verify with quotes.
- Lender origination and processing: 0.25% to 1.0% of loan or $500 to $3,000; underwriting and processing often $400 to $1,200 combined.
- Discount points: optional; 1 point equals 1% of the loan and may lower your rate.
- Appraisal: $400 to $800. Condo appraisals can be higher if extra review is needed.
- Credit report and flood cert: about $35 to $75 combined.
- Title search and settlement: about $300 to $700, plus regulated title premiums based on price and loan amount.
- Recording fees: usually a few hundred dollars total.
- Florida documentary stamps and mortgage taxes: appear on most Florida closings. Confirm current rates and labels with your title company.
- Homeowner’s insurance: first year premium collected at closing, varies by property and coverage.
- Prepaid interest: from your closing date to the first payment.
- Escrow reserves: often two months of taxes and insurance to start your impound account.
- Condo/HOA items: estoppel/resale certificate $100 to $400, transfer or processing fee $50 to $500, plus any application fees.
- Inspections: general home inspection $300 to $600, plus optional radon, pest, or roof certifications.
- Home warranty: optional, often $300 to $700.
Smart moves before you close
- Get a Loan Estimate early. Lenders must provide it within three business days of application, so you can compare fees and rate options.
- Request a title quote. Ask a local Orange County title company for a breakdown including documentary stamps and recording fees.
- Ask about who pays title insurance. In Orlando, it is negotiable. Decide in your contract who pays the owner’s policy.
- Confirm condo fees and timing. Get the estoppel fee, application steps, and any transfer costs from the association early to avoid delays.
- Review assessments and reserves. Request association minutes and financials to check for pending assessments.
- Decide on points vs. rate. Have your lender show the breakeven so you know if buying points makes sense.
- Build a buffer. Plan for higher cash to close if you buy points, need extra inspections, or face rush services.
We’re here to help
If you’re eyeing a home or condo in the Central Business District, clear numbers make confident decisions. We’ll walk you through local customs, condo fees, and the exact mix of taxes, title, and prepaids for your situation, then coordinate with your lender and title team so there are no surprises. Have questions or want a tailored estimate for a specific building? Reach out to Evolve Property Group for local guidance and a smooth path to closing.
FAQs
Can sellers pay buyer closing costs in Orlando?
- Yes, seller credits are common and negotiable. Loan programs set caps on concessions, so ask your lender for the limit based on your loan type.
Do I have to buy an owner’s title policy in Florida?
- It’s optional but strongly recommended. In some Orlando deals the seller pays for it, but it is negotiable and should be addressed in your contract.
Why are Downtown Orlando condo closings higher?
- Associations add estoppel and transfer fees, and some require buyer applications or extra project reviews. These costs are in addition to standard lender, title, and tax items.
Which closing costs are refundable if I cancel?
- Prepaid interest and escrow deposits cover future obligations and are not refunded at closing. Some prorations adjust later on statements, but do not count on refunds.
How can I reduce my cash to close as a buyer?
- Increase your down payment to avoid PMI, compare lenders and ask about credits, negotiate seller concessions, and skip buying unnecessary points. Get written quotes for title and inspections to compare.
