FHA Loans Tampa Bay

What Is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration. FHA loans are designed to make homeownership accessible to buyers with lower credit scores and smaller down payments. They are one of the most popular financing options for first-time homebuyers in Tampa Bay.

FHA Loan Requirements

• Credit score: Minimum 580 for the 3.5% down payment option; 500-579 may qualify with 10% down
• Down payment: As low as 3.5% – can come from savings, gifts, or down payment assistance programs
• Debt-to-income ration: Generally up to 43%, though some lenders allow up to 50% with compensating factors
• Employment: Two years of steady employment history
• Primary residence: FHA loans are for primary residences only
• Property standards: The home must meet FHA Minimum Property Standards (MPS)

FHA Loan Limits in Tampa Bay

FHA loan limits are set by county and updated annually based on local home prices. Limits in the Tampa Bay area cover the vast majority of homes on the market. Your lender will confirm the current limits for the county where you are buying.

FHA Mortgage Insurance

• Upfront MIP: 1.75% of the loan amount, typically financed into the loan
• Annual MIP: Approximately 0.55% of the loan amount, paid monthly

For loans with less than 10% down, MIP is required for the life of the loan. Many buyers start with FHA and refinance to conventional once they reach 20% equity.

FHA vs. Conventional

FHA loans are easier to qualify for but carry ongoing mortgage insurance. Conventional loans may offer lower total costs for buyers with strong credit (680+) and larger down payments. Your lender can run both scenarios to determine which saves you more money over time.

For more homebuyer resources, visit our buyers page or explore down payment assistance programs.