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BARRETT HENRY | THE NOW TEAM

FHA Loan in Florida

Everything you need to know about using a FHA Loan to buy a home in Florida. Expert guidance from Barrett Henry, REALTOR® at REMAX Collective.

How a FHA Loan Works

An FHA loan is a mortgage insured by the Federal Housing Administration, designed for buyers who may not qualify for conventional financing. In Florida, FHA loans are the most popular choice for first-time buyers because they allow down payments as low as 3.5% with a minimum credit score of 580. For 2026, the FHA loan limit in most Florida counties is $524,225 for a single-family home — though higher-cost counties like Monroe County (the Keys) have limits up to $929,850.

FHA loans require mortgage insurance premiums (MIP): an upfront premium of 1.75% of the loan amount (usually rolled into the loan) plus an annual premium of 0.55% for most borrowers, paid monthly. Unlike conventional PMI, FHA mortgage insurance stays on the loan for the entire term if you put less than 10% down. If you put 10% or more down, MIP drops off after 11 years. Florida buyers should also factor in doc stamps at $0.70 per $100 of the purchase price and intangible tax at $0.20 per $100 on the mortgage amount — these are Florida-specific closing costs that apply regardless of loan type.

FHA loans can be combined with Florida down payment assistance programs like the Hometown Heroes program, which provides up to $35,000 in down payment and closing cost assistance for eligible professionals including teachers, nurses, law enforcement, and over 50 other occupations. Barrett Henry, Broker Associate at REMAX Collective with 23+ years of real estate experience, works with FHA-approved lenders throughout Tampa Bay who can get you pre-approved in as little as 24 hours. Call (813) 733-7907 to discuss your options.

FHA Loan Eligibility Requirements

  • Minimum credit score of 580 for 3.5% down payment (500-579 requires 10% down)
  • Debt-to-income ratio (DTI) up to 43% on the back end, though some lenders allow up to 50% with compensating factors
  • Steady employment history — at least 2 years in the same line of work or with the same employer
  • The property must be your primary residence (no investment properties or vacation homes)
  • Property must meet FHA minimum property standards — the appraisal is stricter than conventional, checking for health and safety issues
  • 2026 FHA loan limit of $524,225 for most Florida counties (higher in Monroe, Collier, and some coastal counties)
  • Upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount is required at closing
  • Borrowers must complete a HUD-approved homebuyer education course if using down payment assistance

Benefits of a FHA Loan

1
Down payment as low as 3.5% — on a $300,000 home, that is just $10,500 vs. $60,000 for a conventional 20% down payment
2
Credit score requirements are more forgiving than conventional loans — 580 minimum vs. 620-680 for most conventional programs
3
Gift funds are allowed for the entire down payment — family members, employers, or charitable organizations can contribute
4
Seller concessions up to 6% of the purchase price are allowed, helping offset closing costs that typically run 2-5% in Florida
5
FHA loans are assumable — if you sell your home, the buyer can take over your FHA loan at your locked-in rate, a major selling advantage in a higher-rate environment
6
No income limits — unlike USDA loans, FHA has no maximum income cap, so higher earners can still qualify
7
Eligible for combination with Florida Hometown Heroes ($35,000 DPA), FL Assist ($10,000 deferred second mortgage), and other state programs
8
FHA 203(k) rehabilitation loan option lets you finance the purchase price plus renovation costs in a single mortgage — ideal for older Florida homes needing updates

Frequently Asked Questions About FHA Loans in Florida

What is the FHA loan limit in Florida for 2026?

The 2026 FHA loan limit for most Florida counties is $524,225 for a single-family home. Higher-cost counties have elevated limits — Monroe County (Florida Keys) goes up to $929,850, and a handful of other coastal counties fall in between. Check your specific county limit at the HUD website or call Barrett at (813) 733-7907 for the exact number.

How long does FHA mortgage insurance last?

If you put less than 10% down on an FHA loan, mortgage insurance premiums (MIP) stay for the entire life of the loan. If you put 10% or more down, MIP drops off after 11 years. Many Florida buyers refinance into a conventional loan once they reach 20% equity to eliminate the insurance altogether.

Can I use an FHA loan to buy a condo in Florida?

Yes, but the condo complex must be on the FHA-approved condominium list or qualify for FHA single-unit approval. Florida's post-Surfside condo laws (SB 4-D) require milestone inspections and reserve funding — condos that fail to meet these requirements may lose FHA eligibility. Always verify approval status before making an offer.

What closing costs should Florida FHA buyers expect?

Florida FHA buyers typically pay 2-5% of the purchase price in closing costs. This includes the 1.75% upfront MIP, Florida doc stamps ($0.70 per $100 of purchase price), intangible tax ($0.20 per $100 of mortgage amount), title insurance, lender fees, and prepaid items like insurance and property taxes. On a $350,000 purchase, expect roughly $12,000-$17,500 in total closing costs.

Can I combine an FHA loan with Florida down payment assistance?

Absolutely. FHA loans are eligible for multiple Florida assistance programs including the Hometown Heroes program (up to $35,000), FL Assist ($10,000 as a deferred second mortgage), and county-specific programs in Hillsborough, Pinellas, and Pasco counties. Barrett can connect you with lenders who specialize in stacking these programs.

How does an FHA appraisal differ from a conventional appraisal?

FHA appraisals are more stringent. The appraiser checks for health and safety concerns — peeling paint, missing handrails, faulty wiring, roof condition (must have at least 2 years of life remaining), and adequate water and septic systems. In Florida, this also includes checking for evidence of wood-destroying organisms (termites). An FHA appraisal stays attached to the property for 180 days, meaning the next buyer using FHA on that same property cannot get a new appraisal during that window.

Insider Tips from Barrett Henry

Get pre-approved with an FHA lender BEFORE you start looking at homes. In competitive Tampa Bay neighborhoods, sellers often pass over FHA offers in favor of conventional — having a strong pre-approval letter with proof of funds for closing costs makes your offer significantly more competitive.

If your credit score is between 620 and 680, compare FHA vs. conventional side by side. Sometimes the FHA mortgage insurance over the life of the loan costs more than the slightly higher rate you would pay on a conventional loan. A good lender will run both scenarios for you.

Florida homestead exemption saves you up to $50,000 off your home's assessed value for property tax purposes. File within 30 days of closing to lock it in for the following tax year — the March 1 deadline catches a lot of new buyers off guard.

Ask your lender about FHA Streamline Refinancing. If rates drop after you close, FHA Streamline lets you refinance with minimal paperwork, no appraisal, and reduced MIP — it is one of the fastest and cheapest refinance options available.

Questions About FHA Loans in Florida?

Barrett Henry can connect you with trusted lenders and guide you through every step. Call (813) 733-7907 or fill out the form below.

FL License #BK3313308•23+ Years Experience•REMAX Collective•e-PRO | MRP | SRS
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