FHA Loans in Florida – Low Down Payment Home Financing
Unlock Affordable Homeownership with FHA Loans
For many Florida homebuyers, saving for a large down payment can feel impossible. FHA loans, backed by the Federal Housing Administration, offer a practical solution by allowing you to qualify with as little as 3.5% down. Whether you’re a first-time buyer in Orlando, upgrading in Tampa, or relocating to Jacksonville, FHA financing can make your path to homeownership more achievable.
What Is an FHA Loan?
An FHA loan is a government-insured mortgage designed to help more people qualify for a home loan. Unlike conventional loans, FHA mortgages have flexible credit requirements, making them accessible even if your credit isn’t perfect.
With FHA, lenders can offer you competitive rates while reducing their risk — because the loan is insured by the federal government.
Pros of FHA Loans in Florida
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Low Down Payment – Eligible borrowers may purchase with as little as 3.5% down, making FHA loans especially attractive for first-time buyers.
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Flexible Credit Requirements – FHA programs are accessible to borrowers with credit scores as low as 580 (sometimes even lower with larger down payments).
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Higher DTI Allowance – FHA often allows debt-to-income ratios up to 43–50%, helping borrowers with existing obligations qualify.
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Assumable Loans – FHA mortgages can be transferred to a qualified buyer, which may make your home easier to sell if rates rise.
Cons of FHA Loans in Florida
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Mortgage Insurance Premium (MIP) – Includes both an upfront fee (1.75% of loan amount) and annual premiums. In many cases, MIP is required for the life of the loan if less than 10% down is made.
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Loan Limits – FHA loan limits vary by Florida county and may not be enough to cover higher-cost areas.
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Primary Residence Requirement – FHA loans are for owner-occupied homes only; no second homes or investments.
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Property Standards – Homes must meet FHA’s minimum property standards, which may rule out certain fixer-uppers.
Florida FHA Loan Limits (2025)
FHA loan limits vary by county across Florida. For example:
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Miami-Dade, Broward, Palm Beach: Up to $621,000 for single-family homes.
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Most other counties: $498,257 for single-family homes.
Always check your county’s limit before applying.
Who Can Qualify for an FHA Loan?
FHA loans are designed for buyers who may not fit into conventional lending. You may qualify if you:
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Have steady income (W-2, self-employed, or other verifiable sources).
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Have a minimum credit score of 580 (500–579 possible with 10% down).
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Plan to use the home as your primary residence.
Meet FHA’s debt-to-income ratio guidelines (typically under 57%).
Feature | FHA Loan | Conventional Loan |
|---|---|---|
Down Payment | 3.5% (580+ credit) | 3–20% depending on credit |
Credit Score | 580+ (some exceptions) | 620+ |
Mortgage Insurance | Required | May be waived with 20% down |
Best For | First-time buyers, lower credit | Strong credit, larger down payment |
Why FHA Loans Work Well in Florida
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Growing home prices in cities like Miami and Orlando make FHA a strong entry-point for buyers.
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First-time buyers across Tampa, Jacksonville, and Gainesville rely on FHA for low upfront costs.
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Transplants from out-of-state often benefit from FHA when establishing new credit in Florida.
Compliance Note
This page is for informational purposes only and is not a commitment to lend. Loan programs and limits are subject to change. All loans require underwriting approval. Please contact a licensed Mortgage Loan Originator (MLO) for personalized guidance.