FHA Loans in Florida: Requirements, Loan Limits, and Rates 2025

If you’re looking to buy a home in Florida but don’t have a huge down payment or perfect credit, an FHA loan might be the right choice for you. FHA loans are designed to help homebuyers with lower credit scores and smaller down payments get into a home. Let’s break down everything you need to know about FHA loans in Florida—from how they work to loan limits and requirements for 2025.

What Is an FHA Loan?

An FHA loan is a mortgage backed by the Federal Housing Administration (FHA), designed to make homeownership more accessible for buyers with less-than-perfect credit or limited savings. FHA loans are popular among first-time homebuyers but are available to repeat buyers as well.

How Do FHA Loans Work in Florida?

FHA loans work like traditional mortgages, but they have more flexible qualification requirements. The government insures the loan, making lenders more willing to approve borrowers with lower credit scores and smaller down payments.

Why Are FHA Loans Attractive?

• Low Down Payments: As little as 3.5% down if your credit score is 580 or higher.
• Easier Qualification: FHA loans have more lenient credit and income requirements.
• Competitive Interest Rates: Government backing helps keep rates lower.
• Available for Various Property Types: Can be used for single-family homes, condos, and multi-unit properties.

FHA Loan Requirements in Florida

To qualify for an FHA loan in Florida, borrowers must meet these basic requirements:

• A minimum credit score of 580 (or 500 with a 10% down payment).
• A debt-to-income (DTI) ratio of 43% or lower (some exceptions apply).
• A steady employment history and proof of income.
• The home must be the borrower’s primary residence.

FHA Loan Down Payments in Florida

• 3.5% down if your credit score is 580 or higher.
• 10% down if your credit score is between 500-579.

Gift funds from family or grants from government programs can be used for the down payment.

FHA Mortgage Insurance

FHA loans require mortgage insurance premiums (MIP) to protect lenders in case of default.

How Long Do You Have to Pay Mortgage Insurance for an FHA Loan in Florida?

• If you put down less than 10%, you must pay MIP for the life of the loan.
• If you put down 10% or more, you’ll pay MIP for 11 years.

FHA Loans Credit Score in Florida

• 580+ credit score: Eligible for 3.5% down payment.
• 500-579 credit score: Requires 10% down payment.
• Below 500: Not eligible for FHA financing.

FHA Home Loan DTI

Your debt-to-income ratio (DTI) should generally be 43% or lower, but exceptions may be made for strong borrowers.

FHA Income Requirements

There’s no specific income requirement, but you must show proof of stable employment and sufficient income to cover mortgage payments.

FHA Loan Limits in Florida

FHA loan limits vary by county and property type. In 2025, limits are expected to increase in high-cost areas.

• Single-family home: Varies by location (check FHA’s updated loan limits for your county).
• Multi-unit properties: Higher limits apply.

FHA Interest Rates in Florida

FHA interest rates are competitive and often lower than conventional loans due to government backing. Rates can change daily based on market conditions.

Types of FHA Home Loans in Florida

Purchase Loans

Used to buy a primary residence with low down payment and flexible credit requirements.

FHA Rate-And-Term Refinances

Refinance your existing loan to lower your interest rate or change your loan term.

FHA Streamline Refinance

A simplified refinance option with less paperwork and no appraisal required.

FHA Cash-Out Refinance

Allows you to tap into your home equity and get cash for expenses like home improvements or debt consolidation.

FHA 203(k) Loan in Florida

Designed for fixer-uppers, this loan includes funds for both purchasing and renovating a home.

FHA vs. Conventional Loans in Florida

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Is an FHA Loan Right for You?

An FHA loan might be a great choice if:

• You have a lower credit score.
• You need a low down payment option.
• You want easier qualification requirements.

If you have excellent credit and can afford a higher down payment, a conventional loan may save you money on mortgage insurance.

Bottom Line: Why Choose Midwest Mortgage Lending for Your FHA Loan in Florida?

At Midwest Mortgage Lending LLC, we make getting an FHA loan in Florida simple and stress-free. Our team is here to guide you through every step, from pre-approval to closing, ensuring you get the best loan for your needs.

Ready to buy a home in Florida? Contact us today to start your FHA loan application!

FAQs

1. What are the FHA requirements for Florida? 

A credit score of at least 500, a 3.5%-10% down payment, a primary residence, and a DTI ratio of 43% or less.

2. What is the downside of an FHA loan? 

Mortgage insurance is required for the life of the loan unless you put at least 10% down.

3. What disqualifies you for an FHA loan in Florida? 

A credit score below 500, high debt-to-income ratio, or purchasing an investment property.

4. What is the 5-year rule for FHA loans in Florida? 

There’s no official “5-year rule,” but many refinance after building enough equity.

5. What qualifies a house to be FHA approved? 

It must meet FHA safety and property standards and be used as a primary residence.

6. How much do I need to make to buy a $300k house with an FHA loan? 

Income depends on your debt-to-income ratio, but a rough estimate is $75,000+ annually with minimal debt.

Need an FHA loan in Florida? Contact Midwest Mortgage Lending LLC today!