Florida FHA Loans

FHA loans in Florida are the most common route for first-time buyers: 3.5% down, credit scores accepted from 580, and rates backed by the Federal Housing Administration.

Key features of FHA loans in Florida

• 3.5% down payment (96.5% financing)
• Credit scores from 580 (500 with 10% down)
• Seller can contribute up to 6% of closing costs
• Gift funds allowed for 100% of the down payment
• FHA mortgage insurance: 1.75% upfront plus 0.55% annually
• Available for 1-4 unit properties, which you must occupy
• 30-year and 15-year fixed terms
• Combines with Hometown Heroes and FL Assist for down payment help

What the mortgage insurance actually costs

Every FHA loan carries two insurance premiums, and the second one decides whether this program is the right call. The upfront premium is 1.75% of the loan amount and is financed into the balance rather than paid at closing. The annual premium is 0.55% for most buyers, collected in twelve monthly instalments. On a $400,000 loan that means roughly $7,000 added to what you owe and about $183 a month on top of principal and interest.

Here is the part that catches people. At the standard 3.5% down payment, the annual premium stays for the full life of the loan. It cancels on its own only if you put down 10% or more, and even then not until year eleven. Conventional PMI, by contrast, drops off at 80% loan-to-value. Buyers who expect their credit or equity to improve often take the FHA loan to get into the house, then refinance into a conventional loan once they qualify. Worth modelling both paths before you commit.

Who this suits

• First-time buyers with limited savings
• Credit scores between 580 and 699, where FHA usually prices better than conventional
• Buyers whose down payment is coming from a family gift
• Anyone pairing the loan with Florida down payment assistance

FHA loans in Florida: the county limits and the condo question

How much you can borrow depends entirely on where you buy. The 2026 ceiling runs from $541,287 in most of the state up to $832,750 in Monroe County, so a purchase price that works in Ocala may exceed the limit in Key West. Check your county against the 2026 Florida FHA loan limits before you make an offer.

Condominiums need more care here than anywhere else in the country. FHA will not lend on a unit unless the entire project sits on HUD’s approved list, and Florida’s post-Surfside reserve laws have pushed associations off it. Senate Bill 4-D requires milestone inspections and fully funded structural reserves for buildings three storeys and taller, and an association that has not funded them can lose its approval. Search the building on HUD’s condominium lookup before you go under contract, or read our guide to FHA condo loans.

Two other Florida costs belong in your budget. Documentary stamp tax adds about $0.70 per $100 of the mortgage, and flood insurance is required in any FEMA-designated flood zone, which covers a large share of coastal parcels.

Sources: U.S. Department of Housing and Urban Development, FHA Single Family Housing Policy Handbook 4000.1 and 2026 forward mortgage limits. Florida Statutes 553.899 and 718.112 (milestone inspection and structural reserve requirements). Premiums and limits change; confirm current figures before you apply.