Large down payments are preferred, and Jacksonville FL lenders will be more lenient with their qualifying ratios. For example, a person with a 20 % down payment may be eligible with the 33 % housing expense ratio, while someone with a 5 % down payment is considered with the stricter 28 percent ratio. There are other ways to improve your purchasing power. Many lenders allow you to use gift funds for the down payment and closing costs. You will probably need a “gift letter” stating that the gift does not have to be repaid. Closing costs may also be negotiated between the buyer and seller. There are also local government programs to assist North Florida first time home buyers. Loans may be available at reduced interest rates, or with little or no down payments. Finally, the type of loan you seek may affect your purchasing power.