Buying a Florida Second Home from Colorado (2026 Guide)

Buying a Florida second home from Colorado is one of the most common moves we help finance — Western Slope residents wanting Gulf Coast winters, Front Range professionals adding a Naples retirement home, and snowbirds splitting time between Telluride and Sarasota.

Here's exactly how it works in 2026 — loan options, down payment, taxes, insurance, and how to close without flying out.

Step 1: Decide — Second Home or Investment?

This single decision changes your rate, down payment, and tax treatment.

• Second home: for personal use; can rent occasionally but not full-time. Lower rates, 10% down minimum.
• Investment / DSCR: primarily a rental (long-term or short-term/Airbnb). Higher rates, 20–25% down.

Lender audits are real — claiming "second home" on a property you list on Airbnb 11 months a year is mortgage fraud. Choose honestly.

Step 2: Loan Options

Conventional Second Home Loan

10% down minimum. Rates typically 0.25–0.5% higher than primary residence rates. Best for buyers with strong credit and verifiable W2 or self-employed income. Used for most second homes under conforming limits.

Jumbo Second Home Loan

For purchases above the conforming loan limit (~$806K in most FL counties for 2026, higher in some). Naples, parts of Sarasota, Destin, and Miami often require jumbo. Typically 10–20% down with strong credit and 6–12 months reserves.

DSCR Loan (for STR Investors)

If you'll rent the property short-term in Cape Coral, Destin, Orlando, or another STR-friendly market, a DSCR loan qualifies based on the property's rental income — not your personal income or tax returns.

Cash-Out Refinance on Your CO Home

If you have significant equity in your Colorado home, pulling cash out can fund the FL down payment at lower rates than a second-home mortgage. Often the smartest play for high-equity owners.

Step 3: The Down Payment Math

For a $700K Naples second home with 10% down on a conventional second home loan:

• Down payment: $70,000
• Closing costs: ~$15,000–$20,000
• Reserves required: 2–6 months PITI on both homes

Step 4: Florida-Specific Costs You Won't See in Colorado

Wind / hurricane insurance: Often $2,000–$6,000+ per year on coastal homes. Skyrocketing in 2024–2026. Get a quote before writing your offer.

Flood insurance: Required for any property in a designated flood zone. Can run $500–$5,000/year depending on elevation and zone.

HOA / condo dues: Florida HOAs often run $400–$1,200/month, especially in resort communities. Always factor into DTI.

Property taxes: Without homestead exemption (your second home doesn't qualify), expect roughly 1.0–1.5% of assessed value annually.

Step 5: Closing Remotely

Most Coloradans never fly to Florida for closing. Florida allows remote online notarization (RON), and many title companies will mail closing packages. Plan to:

• Sign electronically or with a mobile notary in CO
• Wire funds from your bank with verbal verification (call your loan officer to confirm wire instructions — wire fraud is rampant)
• Have keys and inspection done by a local agent or property manager

Why Use a Broker Licensed in Both States

Most lenders only operate in one state. Working with a broker licensed in both means:

• One application, one credit pull, one team
• Coordinated timing if you're selling CO to fund FL
• Local market knowledge in both places
• Faster closings — we know exactly what FL underwriters look for

Final Thoughts

Buying a Florida second home from Colorado is straightforward when you have the right team. The hardest part is usually choosing the city — see our Florida city guides or our snowbird overview for help narrowing down. If you're eyeing a condo, also read our Florida condo financing guide, and if you'll make FL your primary, see the Florida homestead exemption guide. Funding the down payment from CO equity? Compare a cash-out refinance on your Colorado home.

At Tayton Capital, we're licensed in both Colorado and Florida and close cross-state second homes every month. We'd love to help with yours.

📧 tj@taytoncapitalllc.com
📞 970-708-9624