Learn · loan programs
FHA loans
Government-insured loans with a 3.5% minimum down payment for scores of 580 and up.
What it is
FHA loans are insured by the Federal Housing Administration (part of HUD) and made by approved lenders. For 2026, the one-unit FHA limit in Broward, Palm Beach and Miami-Dade is $667,000.
Who it fits
- First-time buyers and buyers rebuilding credit
- Buyers with a smaller down payment
- Buyers whose condo building is FHA-approved (or eligible for a single-unit approval)
How it works
- Under HUD Handbook 4000.1, a minimum decision credit score of 580 or higher qualifies for maximum financing: 96.5% of the value on a purchase (3.5% down).
- Scores from 500 to 579 are limited to 90% financing (10% down). Below 500 isn’t eligible. Lenders can set higher minimums.
- FHA charges an upfront mortgage insurance premium of 1.75% of the base loan amount, which can be financed, plus an annual premium paid monthly. For 30-year loans the annual premium is 0.50% to 0.75% depending on loan size and down payment, and lasts 11 years with 10% or more down, otherwise for the life of the loan.
Benefits
- Lower minimum down payment and more flexible credit than many loans
- Gifts are allowed with documentation
- Works with Florida Housing first mortgages and many local assistance programs
Tradeoffs
- Mortgage insurance often lasts for the life of the loan
- The condo building must be FHA-approved (or get a single-unit approval)
- The home must meet HUD’s property standards
Typical documents
- Recent pay stubs and two years of W-2s
- Two recent months of bank statements
- Photo ID and Social Security number
- Explanations for any credit events
Your lender may ask for more or less. Full list: 1-page document checklist (PDF).
Common myth: “FHA is only for first-time buyers.” Not true: FHA has no first-time buyer requirement; it’s for a home you’ll live in.
Pairing with assistance? See the down payment assistance finder.
Last checked October 17, 2026. Sources: HUD Handbook 4000.1, FHA Single Family Housing Policy · HUD Mortgagee Letter 2023-05, FHA annual MIP · HUD FHA Mortgage Limits lookup (CY2026) · HUD Mortgagee Letter 2025-23, 2026 forward mortgage limits · HUD FHA condominium approval search
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