The most popular mortgage for first-time Florida homebuyers. Low down payment, flexible credit, and competitive rates backed by the Federal Housing Administration.
3.5%
Down Payment
580
Min Credit Score
57%
Max DTI
Written by Renzo Johnson, Licensed MLO · NMLS #PENDING · Last updated: February 2026
Key Features
- 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 down payment
- FHA mortgage insurance (MIP): 1.75% upfront + 0.55% annual
- Available for 1-4 unit properties (must owner-occupy)
- 30-year and 15-year fixed terms available
- Can combine with FL Hometown Heroes and FL Assist for DPA
Who Is This For?
- First-time homebuyers with limited savings
- Buyers with credit scores 580-699 (better rates than conventional at these scores)
- Buyers receiving gift funds for down payment
- Anyone who wants the security of a government-backed loan
Florida-Specific Considerations
- Florida FHA loan limits vary by county — $498,257 to $766,550 in 2026
- Documentary stamp tax adds ~$0.70 per $100 to closing costs
- Flood insurance required in FEMA-designated flood zones (common in FL)
- FHA condo financing requires project approval (post-Surfside rules apply)
- Florida Hometown Heroes provides up to 5% DPA on FHA loans
- FL Assist provides $10,000 at 0% interest with FHA first mortgage
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