Conventional vs FHA Loan in Florida: Which Is Right for You? (2026)

The conventional vs FHA decision is one of the most common questions Florida buyers face. The right answer depends on your credit score, your down payment, and how long you plan to stay. Here is a direct side-by-side comparison for 2026.

Down payment requirements

FHA requires 3.5% down with a 580+ credit score, or 10% down with a 500–579 score. Conventional requires 3% down on specific first-time buyer programs, or 5% for most standard loans. FHA is more accessible for buyers with lower scores or limited savings.

Mortgage insurance: the biggest difference

FHA mortgage insurance (MIP) lasts the life of the loan for most purchases with less than 10% down. You pay 1.75% upfront plus 0.55–0.85% annually. Conventional PMI cancels when you reach 80% loan-to-value. If you plan to stay in the home for 7+ years with a 680+ credit score, conventional PMI almost always costs less over time.

Loan limits in South Florida

Palm Beach County FHA limit: $776,400. Broward and Miami-Dade: $621,900. Conventional conforming limit: $806,500 in all three counties. For purchases above these amounts, jumbo financing is required regardless of program.

When to choose each

Choose FHA if your credit score is below 680 or your down payment is under 5%. Choose conventional if your score is 680+ and you plan to own the home long enough for PMI to cancel. Talk to Mortgage Capital to run the exact monthly payment and lifetime cost comparison for your specific situation before deciding.

For personalized guidance on buying or selling in South Florida, contact the team at Pure Equity Realty. We serve Palm Beach, Broward, Miami-Dade, St. Lucie, and Highlands counties with expert representation and a 1% listing fee.