Loan Options • FHA Home Loan
FHA Loans in Florida
FHA loans are insured by the Federal Housing Administration and are known for flexible credit guidelines and low down payment options. FLO Mortgage helps buyers in Palm Coast, Flagler Beach and across Florida use them.
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At a glance
- Flexible credit and income guidelines
- Low down payment options
- Gift funds from family can help with closing costs
- Purchase, refinance and rehab (203k) options
Talk with a licensed loan officer
Search our FHA guides and questions, or pick what fits you below.
What brings you here?
Buying your first home with FHA
Read these in order. Each one takes a few minutes.
- FHA loan requirements: credit, income, debt and the home itself.
- FHA mortgage insurance: the upfront and annual premiums every FHA loan carries.
- FHA vs conventional: which one fits your credit and savings.
- Estimate an FHA payment with mortgage insurance built in.
When your credit isn't perfect
HUD accepts credit scores down to 500. Below 580 you need a larger down payment, and an underwriter may review your file by hand.
- FHA credit score tiers and manual underwriting: how cash reserves or residual income can help your file.
- FHA after bankruptcy or foreclosure: HUD's waiting periods.
- From January 1, 2027, HUD also accepts VantageScore 4.0 and FICO 10T. The minimum scores stay the same.
FHA after bankruptcy or foreclosure
HUD counts from the date of the event:
- Chapter 7 bankruptcy: two years after discharge, or 12 months with a documented hardship beyond your control.
- Chapter 13 bankruptcy: after 12 months of on-time plan payments, with the bankruptcy court's written permission.
- Foreclosure or deed in lieu: generally three years.
The full guide covers short sales and what counts as a hardship.
Is your condo FHA-approved?
You can use an FHA loan on a condo when HUD has approved the building. HUD keeps a public list you can search in a minute.
- On HUD's page, pick the state, then search by the condo's name or city.
- Make sure the status says approved and the approval hasn't expired.
Not on the list? Don't worry. A single-unit approval, often called a spot approval, can work when the building meets HUD's conditions. Our Florida FHA condo guide lists what HUD checks.
Buying a fixer-upper
An FHA 203(k) loan rolls the price and the repair costs into one mortgage. HUD offers a Limited 203(k) for smaller, non-structural jobs and a Standard 203(k) for bigger projects.
FHA 203(k) renovation loans: who it fits and how the repair money gets paid out.
Down payment help
FHA lets you use gift money from family, and some down payment assistance programs pair with an FHA loan.
- Florida: Florida Hometown Heroes and other state programs.
- Georgia: Georgia Dream, covered in our Georgia FHA guide.
- Low down payment options across FHA, conventional, VA and USDA.
Program funding opens and closes during the year, so ask which ones are taking applications now.
Buying in Florida or Georgia
HUD's rules are the same in both states. Closings and local programs differ.
- Florida: condo approval and flood insurance come up often, and Hometown Heroes may pair with FHA. See Florida home loans.
- Georgia: an attorney handles your closing, and you sign a security deed. See FHA loans in Georgia.
- Loan limits: look up your county on HUD's FHA limit search (new tab).
FHA or conventional?
FHA often works with lower credit scores and higher debt. Conventional mortgage insurance can come off once you build equity. Which costs less depends on your score and savings.
- FHA vs conventional, side by side
- Compare conventional, FHA and VA
- Served in the military? Read about VA home loans first.
Tools: FHA payment calculator · FHA streamline refinance calculator
Is it right for you?
Who an FHA loan is for
An FHA loan is a mortgage insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development (HUD). Because the government insures the loan, lenders can approve borrowers who might not fit the stricter boxes of a conventional loan. That makes FHA a strong option if you are buying your first home, rebuilding your credit, carrying student loans or other monthly debt, or working with limited savings.
FHA loans are for homes you will live in. You can use one to buy or refinance a single-family home, an FHA-approved condo, a townhome or a 2 to 4 unit property as long as you live in one of the units.
Buying a condo or a home near the water? Our guide to FHA loans in Florida: condos, flood zones and down payment help covers HUD condo approval, flood insurance and the state programs you can pair with FHA.
FHA requirements in plain English
Credit history
HUD sets a minimum score of 500, with 3.5% down available at 580 and above. Partner lenders may set higher minimums, and your loan officer will show you which ones apply. Past credit events are not automatic deal-breakers: FHA generally allows a new loan two years after a Chapter 7 bankruptcy discharge and three years after a foreclosure, with shorter timelines possible in documented hardship situations. See every waiting period in FHA after bankruptcy or foreclosure.
Income and employment
Expect to document about two years of income history. W-2, self-employed, retirement, Social Security and many other income types can count when they are stable and likely to continue.
Down payment and closing costs
Your down payment can come from savings, a documented gift from a family member, employer or other eligible donor, or an approved down payment assistance program. Sellers can contribute up to 6% of the sales price toward your closing costs.
Buying in Florida? You may be able to pair FHA with Florida Hometown Heroes down payment help. In Georgia, our guide to FHA loans in Georgia explains how Georgia Dream works with FHA. Compare every option, grants included, in FHA down payment assistance.
The property
The home must be your primary residence, and you generally move in within 60 days of closing. An FHA appraisal checks value and confirms the home meets HUD’s minimum property standards for safety, security and soundness. Condos must be in an FHA-approved project or qualify for a single-unit approval. Check the building on HUD’s FHA-approved condo list. Not on the list? Don’t worry. A single-unit approval, often called a spot approval, can work when the building meets HUD’s conditions, and a licensed FLO loan officer can check it for you before you make an offer.
See every HUD requirement, including credit score tiers and manual underwriting: FHA loan requirements.
Understanding FHA mortgage insurance
Every FHA loan includes mortgage insurance premium (MIP). It is what allows FHA to accept smaller down payments and more flexible credit. There are two parts:
- Upfront MIP: 1.75% of the base loan amount. Most borrowers add it to the loan instead of paying it in cash at closing.
- Annual MIP: Most 30-year FHA loans pay 0.50% to 0.55% of the loan balance per year, split into your monthly payment. Rates differ for 15-year terms and larger loan amounts.
FHA pros and cons
Advantages
- Low 3.5% down payment
- Flexible credit and debt-to-income guidelines
- Gift funds and seller help welcome
- Rates are often competitive for borrowers with lower scores
- Can be assumed by a qualified buyer when you sell
- Streamline refinance option later
Trade-offs
- Upfront and annual mortgage insurance
- MIP may last the life of the loan
- Primary residences only
- County loan limits apply
- Stricter property condition standards
Compare loan programs
How this loan compares
Switch between programs to see how down payment, credit, mortgage insurance and loan limits stack up side by side.
| Feature | Conventional | FHA | VA |
|---|---|---|---|
| Minimum down payment | 3% for eligible buyers; 5% is common | 3.5% with a 580+ score; 10% with 500 to 579 | 0% with full entitlement |
| Credit profile | Underwriting reviews your full credit picture; higher scores earn better pricing | Designed for credit flexibility; lender minimums apply | No minimum set by the VA; lender minimums apply |
| Mortgage insurance | PMI when you put down less than 20% | Upfront MIP of 1.75% plus annual MIP (0.55% for most 30-year loans) | No monthly mortgage insurance |
| Can mortgage insurance end? | Yes. Request removal at 80% loan-to-value; it ends automatically at 78% | Only after 11 years if you put down 10% or more; otherwise it lasts for the life of the loan unless you refinance | Not applicable |
| Upfront program fee | None | 1.75% upfront MIP (can be financed) | Funding fee of 1.25% to 3.3% (waived for many disabled veterans) |
| 2026 loan limit (1 unit) | $832,750 baseline; up to $1,249,125 in high-cost areas | $541,287 to $1,249,125 depending on county | No VA loan limit with full entitlement |
| Property types | Primary homes, second homes and investment properties | Primary residence, 1 to 4 units | Primary residence, 1 to 4 units |
| Who can apply | Any qualified borrower | Any qualified borrower who will live in the home | Eligible veterans, service members and surviving spouses with a Certificate of Eligibility |
| Gift funds for down payment | Allowed with documentation | Allowed from eligible donors, such as family | Allowed (often not needed with $0 down) |
★ marks the program with the edge on that feature.
*Figures reflect 2026 program guidelines from FHFA, HUD and the Department of Veterans Affairs and are for educational purposes only. This is not a commitment to lend or an offer of specific terms. All loans are subject to credit approval, underwriting guidelines, property eligibility and program availability, and lender requirements may be stricter than program minimums. Not all applicants will qualify. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.
FAQ
FHA loan questions, answered
What credit score do I need for an FHA loan?
HUD allows FHA loans with credit scores as low as 500. A score of 580 or higher qualifies for the minimum 3.5% down payment, while scores from 500 to 579 require 10% down. Lenders may set higher minimums, so ask a FLO loan officer what applies to your situation.
How much do I need for a down payment on an FHA loan?
The minimum is 3.5% of the purchase price with a credit score of 580 or higher, or 10% with a score from 500 to 579. Your down payment can come from savings, a documented gift or an approved down payment assistance program.
How much is FHA mortgage insurance?
FHA loans have an upfront mortgage insurance premium of 1.75% of the base loan amount, which is usually financed into the loan, plus an annual premium. Most 30-year FHA loans pay 0.50% to 0.55% of the balance per year, collected monthly.
Can I remove mortgage insurance from an FHA loan?
If you put down 10% or more, annual MIP ends after 11 years. With less than 10% down, it lasts for the life of the loan. Many homeowners refinance into a conventional loan once they have enough equity to remove mortgage insurance.
What is the FHA loan limit in 2026?
For a one-unit home, the 2026 FHA loan limit is $541,287 in most counties and up to $1,249,125 in high-cost areas. Limits are higher for 2 to 4 unit properties and vary by county.
Can I use an FHA loan to buy a duplex or fourplex?
Yes. FHA loans can finance 2 to 4 unit properties as long as you live in one of the units as your primary residence. Projected rent from the other units may help you qualify.
How soon after bankruptcy or foreclosure can I get an FHA loan?
FHA generally requires two years after a Chapter 7 bankruptcy discharge and three years after a foreclosure, with re-established credit. Exceptions may be possible for documented extenuating circumstances.
Is FHA only for first-time home buyers?
No. FHA loans are available to first-time and repeat buyers alike, as long as the home will be your primary residence and you meet credit, income and property guidelines.
This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, property eligibility and program availability. Lender requirements may be stricter than the program minimums described here. Not all applicants will qualify. Figures reflect 2026 program guidelines and may change without notice. FLO Mortgage arranges FHA loans through partner lenders. FLO Mortgage is licensed in Florida, Georgia, Michigan, North Carolina, Tennessee and Texas. Company NMLS #1835856. Equal Housing Opportunity. Licensing & Disclosures.
Local, licensed help
Talk an FHA loan through with a FLO loan officer
Every FLO Mortgage loan officer can walk you through this program, run the numbers for your situation and compare it with your other options. Have questions? Call our main office at (386) 882-9980.
Related loan options
Compare Loan Programs
See conventional, FHA and VA side by side and find the best fit.
Learn more →🏠Conventional Loans
Flexible terms, removable PMI and options for second homes and investment property.
Learn more →🇺🇸VA Loans
$0 down and no monthly mortgage insurance for eligible veterans and service members.
Learn more →Not sure what a term means? Browse our mortgage glossary →
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