FHA loans.
Government-insured mortgage financing with flexible credit requirements and a 3.5% minimum down payment. The most common path to homeownership for first-time buyers and credit-rebuilding borrowers.
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). The FHA does not lend money directly — it insures loans made by approved lenders, which reduces the lender's risk and allows them to offer financing to borrowers who might not qualify for conventional loans.
Designed to open the door
Created in 1934 to help Americans become homeowners during the Great Depression, FHA remains one of the most accessible mortgage programs available — particularly for first-time buyers and borrowers rebuilding credit.
FHA loan requirements in Florida
Credit score
580 minimum for the 3.5% down program. Borrowers with 500–579 may sometimes qualify with 10% down, depending on lender overlays.
Down payment
3.5% minimum. Gift funds from a family member are allowed for the entire down payment with proper documentation.
Debt-to-income
Generally 43% or lower, though some lenders go up to 50% with compensating factors like reserves or strong credit.
Property
Must be your primary residence and meet HUD's minimum property standards. The FHA appraisal checks both value and condition.
FHA mortgage insurance — the trade-off
FHA's flexible underwriting comes with mortgage insurance you'll need to budget for. There are two pieces:
UFMIP + monthly MIP
UFMIP (upfront mortgage insurance premium) is 1.75% of the loan amount, typically rolled into the loan rather than paid out of pocket. MIP (annual mortgage insurance premium) varies roughly from 0.55% to 0.85% depending on LTV and term, paid monthly. For most FHA loans with less than 10% down, MIP generally lasts the life of the loan — the common path to eliminating it is refinancing into a conventional loan once you've built enough equity.
For borrowers planning to refinance into a conventional loan once their credit and equity improve, this is a manageable trade-off. For others, the long-term cost is real and worth modeling against a conventional alternative — exactly the kind of math Debbie runs during the consultation.
FHA vs. conventional — which is right for you?
The right answer depends on your credit, your cash, and how long you'll hold the loan.
The flexible-qualifying path
Lower credit thresholds, smaller down payment, gift funds welcome, and shorter waits after past credit events.
- 3.5% down with credit from 580
- Entire down payment can be a gift
- Shorter waits after bankruptcy / foreclosure
- Mortgage insurance generally for the life of the loan
The lower long-term cost path
For strong-credit borrowers with 10% or more down, conventional usually wins on rate and on total mortgage-insurance cost.
- PMI is removable at 20% equity
- No upfront mortgage insurance premium
- More flexible on second homes & investment
FHA loan limits in Florida (2026)
2026 FHA limit (most FL counties)
$524,225 for a single-family home. Higher-cost counties (like Monroe County / the Keys) reach up to $806,500. Loan amounts above these would require conventional or jumbo financing.
FHA Streamline Refinance
If you already have an FHA loan, you may be eligible for an FHA Streamline Refinance — a simplified refinance program with reduced documentation, no appraisal, and lower closing costs than a typical refinance. The main qualification is that the refinance produce a "net tangible benefit" to you, typically a lower monthly payment.
Independent broker advantage
Different wholesale lenders price FHA loans differently and have different overlay guidelines (additional restrictions on top of FHA's baseline). As an independent broker, Debbie can identify the FHA lender that prices best for your specific scenario.
Made for buyers who don't fit the conventional box.
Built for first-time buyers
FHA's flexible underwriting and 3.5% down payment make it the most common path to homeownership for Florida families buying their first home. Gift funds may cover the entire down payment.
Lower credit thresholds
Approval is typically possible with credit scores from 580 — and sometimes from 500 with a larger down payment. FHA also has shorter waiting periods after bankruptcy or foreclosure than conventional.
Gift funds welcome
FHA allows the entire down payment to come from gift funds — a parent, grandparent, or close family member can cover your 3.5% with proper documentation. That's often the difference between renting and owning.
Pair FHA with Florida assistance programs.
FHA combines well with Florida's down payment assistance programs — the Hometown Heroes Housing Program for eligible workers, the Florida Bond Program for first-time buyers, and county-level grants. Many FHA buyers in Pasco and Pinellas use these stacked together to bring out-of-pocket closing costs to near-zero.
Income limits and homebuyer education requirements typically apply, but the savings can be substantial — often $20,000 or more in combined first-mortgage and assistance benefits.
Get the First-Time Homebuyer Roadmap.
A free PDF guide that walks through credit prep, every Florida down payment assistance program, document checklists, and what actually happens at closing. Written by a 40-year veteran broker.
Common questions about FHA in Florida.
What's the FHA mortgage insurance premium and how long do I pay it?
FHA loans require an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount — typically rolled into the loan rather than paid out of pocket — plus an annual mortgage insurance premium (MIP) of roughly 0.55% to 0.85% paid monthly. For most FHA loans with less than 10% down, MIP generally lasts the life of the loan; the common path to eliminating it is refinancing into a conventional loan once you've built enough equity.
Can I get an FHA loan with a credit score below 580?
Possibly. FHA's official guidelines allow approval with credit scores from 500–579 if you put at least 10% down, but most lenders apply their own overlays and require 580 or higher. As a broker, Debbie has access to lenders with different overlay policies, so she may be able to find an option for borrowers in this range.
What kinds of properties qualify for FHA in Florida?
FHA loans cover single-family homes, FHA-approved condominiums, manufactured homes meeting HUD standards, and 2–4 unit properties where you live in one unit. The home must be your primary residence and pass the FHA appraisal, which checks both value and minimum property condition. Vacation homes and pure investment properties don't qualify.
Can I get an FHA loan if I've had a bankruptcy or foreclosure?
Often, yes — FHA waiting periods are typically shorter than conventional. After a Chapter 7 bankruptcy, the standard wait is 2 years from discharge; after a Chapter 13, it may be possible after 12 months of on-time payments with court approval. After a foreclosure, the typical wait is 3 years. These timelines can sometimes shorten with documented extenuating circumstances.
What's an FHA Streamline Refinance?
If you already have an FHA loan, the Streamline Refinance program lets you refinance to a lower rate with reduced documentation, no appraisal, and lower closing costs than a typical refinance. The main requirement is a 'net tangible benefit' — usually a lower monthly payment. It's one of the fastest, simplest refinances available.