FHA Home Loans · Florida

Florida FHA Loans — 3.5% Down with 580 FICO, 10% Down with 500 FICO

FHA loans are government-insured mortgages with the most flexible credit and down payment standards available. 3.5% down with 580+ FICO, gift funds allowed, DTI up to 56.9%, and 1–4 unit properties for house hacking. Best path to homeownership if your credit is 500–700 or you don’t have a big down payment.

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Florida FHA home loan — 3.5 percent down first-time buyer mortgage

Why FHA

The Most Accessible Florida Mortgage Program

FHA exists to put homeownership within reach when conventional standards lock you out. Lower credit, lower down, higher DTI, gift funds welcome.

3.5% Down with 580+ FICO

Minimum 3.5% down payment with a 580 credit score. On a $400,000 Florida home, that’s $14,000 down. Compare to conventional which typically requires 5%+ at that credit level.

500 FICO Accepted with 10% Down

Below 580 credit? FHA still accepts you down to 500 FICO with 10% down. The most flexible major loan program on credit — conventional won’t even talk to you below 620.

Higher DTI Allowed (up to 56.9%)

FHA underwriting allows debt-to-income ratios up to 56.9% with strong compensating factors, vs conventional’s 43–45% typical cap. Bigger home with the same income.

Multi-Unit House Hacking

FHA finances 1–4 unit properties as long as you live in one unit. Buy a duplex with 3.5% down, live in one half, rent the other to cover your mortgage. Florida’s most overlooked first-buyer strategy.

The Details

What FHA Loans Actually Cost

The MIP math is the most-misunderstood part of FHA. Here’s exactly how it works in 2026.

FHA Mortgage Insurance (MIP) Mechanics

Upfront MIP: 1.75% of loan amount, typically rolled into the loan. Annual MIP: 0.55% paid monthly. On $400K: $7,000 upfront + $183/month ongoing. MIP duration: cancels after 11 years if you put 10%+ down. With less than 10% down, MIP stays for the loan’s life — your only escape is refinancing to a conventional loan once you’ve built 20%+ equity.

2026 Florida FHA Loan Limits

Standard counties: $524,225 for single-family (the FHA floor). High-cost counties — Miami-Dade, Broward, Palm Beach: $1,249,125. Monroe County (Keys) has a special exception ceiling above that. 2–4 unit properties have higher limits proportionally. We’ll check your exact county and property type.

Down Payment Sources

FHA accepts down payment from many sources: your own savings, 100% gifted from family (mom and dad can write a check), down payment assistance programs (DPA, Hometown Heroes, county grants), seller concessions (up to 6% of price), employer assistance programs, and even some retirement account distributions. Conventional is much stricter on gift funds.

Property Condition Standards

FHA requires the property to meet HUD’s minimum standards: working HVAC/plumbing/electrical, no peeling paint (lead in pre-1978 homes), no major safety hazards, intact roof, functional kitchen/bath. The FHA appraiser flags any deficiencies that must be cured before closing. For fixer-uppers, the FHA 203(k) renovation loan bundles purchase + repairs into one mortgage.

Want to see your FHA pricing with current rates and MIP costs on your specific scenario? We’ll quote it in 24 hours — no hard credit pull.

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Side-by-Side

FHA vs Conventional vs USDA Loans

The three main government-influenced first-buyer paths. Each works best for different profiles.

2026 program guidelines. Rates and terms vary by lender, borrower, and market conditions.
	FHA	Conventional	USDA
Min Down Payment	3.5% (580 FICO)	3% (first-time)	0%
Min FICO	500 (w/10% down) or 580	620+	640+ (typical)
Max DTI	56.9% (w/strong factors)	43–45% typical	41–46%
Gift Funds Allowed	100%	Limited	Yes
Mortgage Insurance	UFMIP 1.75% + 0.55%/yr (perm if <10% down)	PMI cancels at 78% LTV	1% upfront + 0.35%/yr
Property Type	1–4 unit owner-occ	Any (primary, 2nd, invest)	Rural primary only
Income Limits	None	None	115% of area median
Best For	500–700 FICO, low down	700+ FICO, 5%+ down	Rural buyers, $0 down

How It Works

From Credit Check to Keys in 30–45 Days

FHA timeline is similar to conventional. The appraisal step adds a few extra days due to stricter property condition standards.

Credit & Eligibility Check

We pull credit, confirm your FICO tier (500–579, 580–700, 700+), and identify down payment options including FL DPA programs you may qualify for.

Pre-Approval

Submit ID, income docs, asset statements. Pre-approval letter within 24–48 hours showing your max purchase price.

Find FHA-Eligible Property

Shop with confidence. We verify the property meets FHA standards before offering — no closing surprises from appraiser deficiencies.

Underwriting + FHA Appraisal

Standard 30–40 day timeline. The FHA appraisal is stricter than conventional — we coordinate any required repairs before closing.

Close & Move In

Sign closing docs and get your keys. Refinance to conventional in 2–3 years once you’ve built equity to remove MIP.

Honest Considerations

FHA Isn’t Always the Cheapest Loan

If you have 700+ FICO and 5%+ down, conventional usually beats FHA on total cost. Know the trade-offs.

Mortgage insurance is permanent if you put less than 10% down — to remove it, you’d refinance to a conventional loan once you have 20%+ equity.
Upfront MIP adds 1.75% to your loan amount — typically financed into the loan, but still increases your monthly payment.
Property condition standards are stricter than conventional — fixer-uppers and as-is sales often need repairs before closing.
Loan limits cap your borrowing power — in most FL counties capped at $524,225 for single-family, well below the conventional limit.
Primary residence only — FHA does not finance second homes or investment properties (except 1–4 unit owner-occupied house hacking).

Common Questions

FHA Loan FAQ

The questions Florida FHA buyers ask most. Don’t see yours? Ask Alex directly.

An FHA loan is a mortgage insured by the Federal Housing Administration (a division of HUD). The government guarantee lets lenders offer easier qualifying terms than conventional loans — lower minimum credit scores (down to 500), lower down payments (3.5% with 580+ FICO), higher debt-to-income limits (up to 56.9% with strong factors), and more flexible income documentation. In exchange, you pay both upfront and annual Mortgage Insurance Premiums (MIP).

FHA requires 580+ FICO for 3.5% down. With 500–579 FICO you can still qualify, but you’ll need 10% down minimum. Below 500, you don’t qualify for FHA. Note: while FHA itself accepts 500, many individual lenders set their floor higher (usually 580–620). We work with multiple FHA-approved lenders so we can match you to the program that fits your actual score.

Minimum is 3.5% with 580+ FICO. So on a $400,000 Florida home, you’d need $14,000 down. Down payment can be 100% gifted from family. FHA also allows down payment assistance (DPA) programs to cover some or all of your down payment — something conventional loans typically restrict. Some FL DPA programs combine with FHA to get you in with effectively $0 out of pocket.

Upfront MIP: 1.75% of your loan amount, paid at closing (typically rolled into the loan). On a $400,000 loan, that’s $7,000 added to your loan balance. Annual MIP: 0.55% of loan amount, charged monthly (about $183/month on $400K). If you put 10%+ down, annual MIP cancels after 11 years. If you put less than 10% down, MIP stays for the life of the loan — you’d need to refinance to a conventional loan to remove it.

FHA limits vary by county. For 2026: most Florida counties have a single-family limit of $524,225 (the FHA floor). High-cost counties — Miami-Dade, Broward, Palm Beach — share the conforming ceiling of $1,249,125. Monroe County (Keys) has a special exception ceiling. We’ll check your exact county limit before you go shopping.

FHA wins if your credit is 500–700 or you have only 3.5% down. Conventional wins if your credit is 700+ and you can put down 5%+. Key trade-off: FHA accepts you with worse credit but charges permanent MIP (if <10% down). Conventional rejects you more easily but lets PMI cancel at 78% LTV. On a $400K loan over 10 years, the lifetime cost difference is typically $20,000–$40,000 in conventional’s favor — IF you qualify for conventional.

Yes — FHA allows 1–4 unit properties as long as you live in one of the units as your primary residence. This is called “house hacking” — you can buy a duplex, triplex, or fourplex with just 3.5% down, live in one unit, and rent the others to cover much of your mortgage. The rental income can also count toward your qualifying income (75% of market rent is typically used).

Yes. FHA requires an FHA-approved appraiser to confirm the property meets minimum property standards — working systems (HVAC, plumbing, electrical), no peeling paint (lead concern in pre-1978 homes), no major safety hazards, functional kitchen and bath, proper roof. These standards are stricter than conventional. Fixer-uppers may need repairs completed before closing OR an FHA 203(k) renovation loan that bundles purchase and rehab.

Florida’s Most Accessible Loan

Free FHA Pre-Approval in 48 Hours

Alex Doce has closed thousands of FHA loans across Florida over 38 years — from credit-rebuilding first-time buyers to multi-unit house-hackers. Send us your credit score and down payment situation, we’ll quote your exact FHA terms and check if any Florida DPA programs can cover your out-of-pocket cost. No obligation.

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