FHA remains one of the most popular home mortgage options for Florida homebuyers. Limited down payment, flexible credit guidelines, and low interest rates are just a few of the FHA loan advantages.
One of the biggest benefits of an FHA loan is the low down payment requirement. While most conventional loans require a minimum of 20% down, FHA only requires a minimum of 3.5% down payment. This is especially helpful for first-time buyers have a limited savings.
*Note: income eligible first-time buyers in Florida also have the Hometown Heroes Program option to help with complete down payment assistance and closing costs. Buyers can learn more about Florida Hometown Heroes qualifying here.
Another advantage of FHA loans is they offer competitive interest rates compared to other loan options. This can save borrowers thousands of dollars over the life of their loan.
FHA loans also have no prepayment penalty, meaning borrowers can pay off their mortgage early without any additional fees. This gives homeowners more flexibility and control over their finances. Furthermore, FHA loans offer various options, such as fixed-rate mortgages and adjustable-rate mortgages.
Homes for sale in Florida are still pretty cheap when compared to many other states in the north or out west. In most cases, the cost to buy versus the cost to rent favors buying. Second, FHA interest rates are still relatively low, and purchasing often has advantages over renting.
So about the FHA home loan – is your credit good enough? What about your employment history? And of course, the scariest thing of all is the down payment. Well, there is hope. Thankfully, FHA Mortgage Loans are still readily available in Florida.
Even though Florida FHA guidelines don’t state a minimum score requirement, most lenders require your middle score to be at least 580-600. There are also additional requirements in place for any FHA borrowers who may have had a bankruptcy, short sale, or foreclosure within the last 5 years.
Other than that, the only other thing FHA requires is 2 open trade lines showing that you have paid on time for at least 12 months. Open trade lines could be credit cards, car payments, student loans, etc. And speaking of student loans, you want to ensure you are current on all Federal loans to be eligible for an FHA mortgage.
Now that we got the basics out of the way, let’s talk about employment history. FHA will permit buyers to move between jobs as long as there is no unexplained extended gap in employment.
Let’s say you work as a nurse at as hospital, and you recently switched employers to a different hospital. You also decided to take a two-week break before starting the new job. This would be permitted and considered normal.
However, if you were out of work for months, you should be prepared to explain the gap of employment. Extended gaps of employment can come from many things, like illness, care of a family member, etc.
Note, if you are newly self-employed, you would need at least 2 years of tax returns before eligibility.
Let’s talk about the required FHA loan down payment. If you were to use a Conventional loan, you would need around 5% minimum down payment. On a $200k loan that’s $10,000 PLUS your closing costs! With a FHA loan, you only need to put 3.5% down or $7,000.
In addition, your FHA loan down payment can be gifted by a relative, or you borrow it from your 401k. The only place it can’t come from is the seller, but that’s no big deal since FHA allows the seller to pay up to 6% for closing costs (and closing costs are rarely more than about 5%)
Florida FHA Loan Highlights Include:
- Low 3.5% down payment (possibly 100% financing with approved down payment assistance)
- Lower mortgage insurance costs recently announced
- Lower credit scores permitted
- Seller permitted to pay home buyers closing costs
- Loan limits of $498,257 (1-unit property) in Florida for 2024 *Some counties are slightly higher, please find the complete county by county loan limits below.
- Low fixed interest rates, 15-yr and 30-yr terms
- Not limited to first-time home buyers – move-up buyers are welcome
- Flexible refinance options
So now that you know you have real options, feel free to contact us to get your Florida FHA pre approval letter. We can pre-qualify you in minutes and tell you exactly how much you can afford. With that letter, you are set to start house hunting!
Contact us 7 days a week by calling Ph: 800-743-7556 or just submit the Info Request Form on this page.
County | One-Family | Two-Family | Three-Family | Four-Family |
ALACHUA | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
BAKER | $ 564,650 | $ 722,850 | $ 873,750 | $ 1,085,900 |
BAY | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
BRADFORD | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
BREVARD | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
BROWARD | $ 621,000 | $ 795,000 | $ 960,950 | $ 1,194,250 |
CALHOUN | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
CHARLOTTE | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
CITRUS | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
CLAY | $ 564,650 | $ 722,850 | $ 873,750 | $ 1,085,900 |
COLLIER | $ 730,250 | $ 934,850 | $ 1,130,000 | $ 1,404,350 |
COLUMBIA | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
DESOTO | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
DIXIE | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
DUVAL | $ 564,650 | $ 722,850 | $ 873,750 | $ 1,085,900 |
ESCAMBIA | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
FLAGLER | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
FRANKLIN | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
GADSDEN | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
GILCHRIST | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
GLADES | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
GULF | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
HAMILTON | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
HARDEE | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
HENDRY | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
HERNANDO | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
HIGHLANDS | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
HILLSBOROUGH | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
HOLMES | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
INDIAN RIVER | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
JACKSON | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
JEFFERSON | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
LAFAYETTE | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
LAKE | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
LEE | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
LEON | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
LEVY | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
LIBERTY | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
MADISON | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
MANATEE | $ 547,400 | $ 700,750 | $ 847,050 | $ 1,052,700 |
MARION | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
MARTIN | $ 546,250 | $ 699,300 | $ 845,300 | $ 1,050,500 |
MIAMI-DADE | $ 621,000 | $ 795,000 | $ 960,950 | $ 1,194,250 |
MONROE | $ 929,200 | $ 1,189,550 | $ 1,437,900 | $ 1,786,950 |
NASSAU | $ 564,650 | $ 722,850 | $ 873,750 | $ 1,085,900 |
OKALOOSA | $ 603,750 | $ 772,900 | $ 934,250 | $ 1,161,050 |
OKEECHOBEE | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
ORANGE | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
OSCEOLA | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
PALM BEACH | $ 621,000 | $ 795,000 | $ 960,950 | $ 1,194,250 |
PASCO | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
PINELLAS | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
POLK | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
PUTNAM | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
SANTA ROSA | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
SARASOTA | $ 547,400 | $ 700,750 | $ 847,050 | $ 1,052,700 |
SEMINOLE | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
ST. JOHNS | $ 564,650 | $ 722,850 | $ 873,750 | $ 1,085,900 |
ST. LUCIE | $ 546,250 | $ 699,300 | $ 845,300 | $ 1,050,500 |
SUMTER | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
SUWANNEE | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
TAYLOR | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
UNION | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
VOLUSIA | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
WAKULLA | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |
WALTON | $ 603,750 | $ 772,900 | $ 934,250 | $ 1,161,050 |
WASHINGTON | $ 498,257 | $ 637,950 | $ 771,125 | $ 958,350 |