A 3 percent down mortgage in Florida comes in three versions, and only one of them has no income limit. Picking the wrong one is why buyers get told they earn too much.
Written by Renzo Johnson, Licensed Mortgage Loan Originator · Guidelines from Fannie Mae and Freddie Mac · Last updated: August 2026
The three routes to a 3 percent down mortgage in Florida
| Program | Income limit | Who it fits |
|---|---|---|
| HomeReady (Fannie Mae) | Yes, at or below 80% of area median income | Moderate-income buyers; gives credit for accessory dwelling unit rent |
| Home Possible (Freddie Mac) | Yes, at or below 80% of area median income | Moderate-income buyers; flexible on the source of funds |
| Conventional 97 (Fannie Mae) | No income limit | First-time buyers who earn too much for the other two |
Earning too much is not a reason to give up on 3% down
This is the part most buyers never hear. HomeReady and Home Possible both cap your income at 80% of the area median for your county, and in higher-cost Florida counties a two-earner household clears that quickly. Once a lender sees you over the line, the conversation often jumps straight to FHA.
However, Conventional 97 exists precisely for this. It allows the same 3% down payment with no income ceiling at all, provided at least one borrower is a first-time buyer, meaning nobody on the loan has owned a home in the past three years. You give up the discounted mortgage insurance and the pricing breaks the income-limited programs carry, yet you keep the low down payment.
Therefore ask specifically about Conventional 97 by name. It is a different product, not a variation, and a lender who only quotes HomeReady may not mention it.
Why any of these usually beats FHA
All three carry private mortgage insurance rather than FHA’s premium, and that difference compounds. PMI ends once you reach 20% equity, whether through payments or appreciation. FHA insurance at 3.5% down runs for the life of the loan. Meanwhile none of these charges the 1.75% upfront premium FHA adds to your balance at closing.
Since Florida values have moved considerably, buyers here often reach the cancellation threshold years earlier than the amortization schedule suggests. Read how PMI cancellation actually works before you assume you are stuck with it.
What all three require
- 3% down, giving a 97% loan-to-value
- No upfront mortgage insurance premium
- A homebuyer education course on the income-limited programs
- Primary residence only, so no second homes or rentals
- A single-unit property in most cases, though some allow two to four units at higher down payments
Florida-specific notes
- Income limits shift by county, so a household that fails in Miami-Dade may qualify elsewhere
- These pair with Florida Hometown Heroes for down payment and closing cost help
- Over the life of the loan they cost less than FHA, because the mortgage insurance ends
- Agency condo rules are lighter than FHA’s, which matters across much of the Florida market
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Sources: Fannie Mae HomeReady and Conventional 97 product terms, and Freddie Mac Home Possible. Income limits are set by county and revised annually; confirm yours before you apply.