Florida FHA loan requirements 2026.
3.5% down payment. Credit scores from 580. FHA loans are the most accessible path to homeownership for first-time buyers and those rebuilding credit.
Everything you need to qualify in Florida.
FHA loans are insured by the Federal Housing Administration and offered through approved lenders. Florida is one of the highest-volume FHA states due to its mix of first-time buyers, retirees, and buyers with prior credit challenges.
Credit Score: 580+ for 3.5% Down
With a 580+ score, you qualify for the 3.5% minimum down payment. Scores 500–579 require 10% down. Below 500 is not eligible for FHA. We work with scores as low as 580 on standard programs.
Down Payment: 3.5% Minimum
3.5% of the purchase price. On a $350,000 home, that's $12,250 down. Gift funds from family are allowed in full. No requirement for borrower's own funds on primary residences.
Debt-to-Income Ratio: Up to 57%
FHA is more flexible than Conventional on DTI. With automated underwriting approval, DTI up to 56.99% is possible. Most approvals land in the 43–50% range.
Employment History: 2 Years
Two years of consistent employment or self-employment history. Recent job changes in the same field are acceptable. Gaps under 30 days are generally not an issue.
Primary Residence Only
FHA loans are for owner-occupied primary residences. 1–4 unit properties are eligible. A great strategy for house-hacking with 3.5% down on a duplex, triplex, or fourplex.
Mortgage Insurance Premium (MIP)
FHA requires two forms of MIP: 1.75% upfront (typically financed) and 0.55% annual for most loans. On a $350K loan, annual MIP is ~$1,925/yr ($160/mo). Unlike PMI, FHA MIP stays for the loan's life if you put less than 10% down.
| Feature | FHA | Conventional |
|---|---|---|
| Min Down Payment | 3.5% (580+ score) | 3% (620+ score) |
| Min Credit Score | 580 (3.5% down) | 620 |
| Max DTI | 56.99% (AUS approval) | 50% (AUS approval) |
| Mortgage Insurance | MIP for life of loan | PMI cancels at 20% equity |
| Loan Limit (Palm Beach) | $524,225 | $806,500 |
| Gift Funds | Fully allowed | Allowed with conditions |
FHA + Down Payment Assistance
FHA loans are compatible with Florida’s Hometown Heroes and FL Assist programs. Eligible buyers can use DPA to cover the 3.5% down payment. Effectively purchasing a home with little to no out-of-pocket funds. Ask our team about stacking options.
Equal Housing Lender. FHA loan limits are set annually by HUD and vary by county. Not a commitment to lend. All loans subject to credit approval. NMLS# 1859012. Licensed in Florida.
Frequently asked questions about FHA loans in Florida.
Can I use gift money for the FHA down payment in Florida?
Yes. FHA allows the full 3.5% down payment to come from gift funds. Acceptable gift sources include family members, domestic partners, employers, and nonprofit organizations. The gift must be documented with a signed gift letter stating the funds are not a loan. There is no requirement for the borrower to contribute any of their own funds on a primary residence FHA purchase.
How long does FHA mortgage insurance last?
For loans with less than 10% down, FHA MIP lasts for the entire life of the loan. The only way to remove it is to refinance into a conventional loan once you have 20% equity. If you put 10% or more down, MIP cancels after 11 years. This is the biggest disadvantage of FHA compared to conventional loans where PMI cancels automatically at 20% equity.
Can I buy a multi-family property with an FHA loan in Florida?
Yes. FHA loans are eligible for 1–4 unit properties. You must occupy one unit as your primary residence for at least one year after closing. The other units can be rented out. The rental income from the other units can be used to offset your qualifying payment, making it easier to qualify. A 2–4 unit FHA purchase is one of the most powerful first-investment strategies available.
What is the FHA loan limit in Palm Beach County for 2026?
The FHA loan limit for Palm Beach County in 2026 is $524,225 for a single-family home. For multi-family properties, the limits increase: $671,200 for a duplex, $811,275 for a triplex, and $1,008,300 for a fourplex. These limits are set by HUD annually and reflect local median home prices. Higher-cost counties like Miami-Dade have higher limits.
Can I refinance from an FHA loan into a conventional loan?
Yes, and this is a common strategy for FHA borrowers. Once you reach 20% equity in the home — through appreciation, payments, or both — you can refinance into a conventional loan and eliminate MIP entirely. Given South Florida's historical home price appreciation, many FHA buyers reach that 20% equity milestone faster than expected. Our mortgage team can analyze when a refinance makes financial sense.
Start your FHA pre-approval today.
Credit scores from 580. Down payment as low as 3.5%. Our mortgage team responds within 24 hours.
Get FHA Pre-ApprovalOr view all loan programs at Pure Equity Realty Mortgage Capital.