Buy Your First Home with 3.5% Down — Even with Imperfect Credit
FHA loans are Florida’s most popular path to first-time homeownership. A 580 credit score gets you in the door. Stack it with Hometown Heroes for up to $35,000 in free assistance.
FHA Loans: Built for Real People in Real Situations
The Federal Housing Administration created FHA loans specifically for buyers who don’t fit the perfect conventional mold. Less-than-perfect credit? Limited savings? Gift funds for your down payment? FHA was designed with you in mind.
🏛️ FHA Loan
Min. Down Payment3.5%
Min. Credit Score580
Max DTI~50% w/ factors
Mortgage InsuranceRequired (life of loan)
Seller ContributionUp to 6%
Gift Funds✓ Allowed (100%)
📋 Conventional Loan
Min. Down Payment3–5%
Min. Credit Score620+
Max DTI~45%
Mortgage InsuranceDrops at 20% equity
Seller Contribution3–6% (by LTV)
Gift FundsPartially allowed
🎖️ VA Loan (if eligible)
Min. Down Payment$0
Min. Credit Score580 (lender)
Max DTIFlexible
Mortgage InsuranceNone — ever
Seller ContributionUp to 4%
Gift Funds✓ Allowed
2026 FHA Loan Limits in Florida by County
FHA loan limits are set by county and updated annually. Here are the most-searched Central Florida markets for 2026.
County / Market
1-Unit (Single Family)
2-Unit (Duplex)
4-Unit (Fourplex)
Orange / Osceola (Orlando Metro)
$541,287
$693,000
$1,034,950
Miami-Dade / Broward
$667,000
$853,900
$1,276,200
Hillsborough / Pinellas (Tampa)
$541,287
$693,000
$1,034,950
Palm Beach
$667,000
$853,900
$1,276,200
Monroe (Key West / Keys)
$990,150
$1,267,600
$1,904,150
Collier (Naples)
$603,750
$773,250
$1,153,900
Most Other FL Counties
$541,287
$693,000
$1,034,950
Limits shown are estimates based on 2026 HUD data. Verify your specific county at hud.gov before making an offer. Multi-unit limits allow you to buy a 2–4 unit property, live in one unit, and rent the others.
FHA Loan Payment Calculator
Calculate your monthly FHA payment including MIP — and see how much less you’d need with Hometown Heroes DPA stacked on top.
Purchase Price$350,000
Down Payment (3.5%)$12,250
DPA Assistance Applied$0
Your Out-of-Pocket Down$—
Base Loan Amount$—
UFMIP (1.75%, rolled in)$—
Monthly P&I$—
Monthly MIP (0.55%/yr)$—
Estimated Total Monthly Payment (P&I + MIP)
$—
MIP rate of 0.55%/yr used for illustration (30-yr, <10% down). UFMIP of 1.75% rolled into loan. Actual MIP varies by loan term, LTV, and case number. Not a loan commitment.
FHA Loan FAQ — Florida 2026
Answers to the questions Florida buyers ask us most about FHA loans.
What’s the minimum credit score for an FHA loan in Florida? ▼
The FHA minimum is 580 for 3.5% down. Scores between 500–579 still qualify but require 10% down. That said, some lenders add their own overlays requiring 620+. As a broker, I work with multiple lenders — including those that honor the 580 minimum without overlays.
Does FHA MIP go away? ▼
Not automatically with less than 10% down. If you put down less than 10%, FHA’s annual mortgage insurance premium (MIP) stays for the life of the loan. The most common exit strategy is to refinance into a conventional loan once you reach approximately 20% equity. If you put 10%+ down, MIP drops off after 11 years. This is one reason we also look at whether a conventional loan with slightly lower down payment might save you more long-term.
Can I use gift funds for my FHA down payment? ▼
Yes — FHA allows 100% of your down payment to come from gift funds from a family member, employer, charitable organization, or government agency. The gift must be properly documented with a gift letter confirming it does not require repayment. This is one of FHA’s most significant advantages over conventional loans.
Can I buy a duplex or multi-unit with an FHA loan? ▼
Yes. FHA allows 2–4 unit properties with the same 3.5% down payment and 580 credit score requirements — as long as you occupy one unit as your primary residence. Better yet, lenders can count a portion of the rental income from the other units to help you qualify for a larger loan. FHA multi-unit limits in most Florida counties go up to $1,034,950 for a 4-unit.
What’s the FHA loan limit for Orange County / Orlando in 2026? ▼
The 2026 FHA single-family loan limit for Orange and Osceola Counties (the Orlando metro) is $541,287 for a 1-unit property. This covers most mid-range home purchases in the area. If you’re looking at higher-priced homes, we can explore conventional or jumbo loan options. Use the calculator above to check your buying power.
Can I stack an FHA loan with Florida down payment assistance? ▼
Yes — and this is one of the smartest moves a Florida buyer can make. FHA is explicitly compatible with the Florida Hometown Heroes program (up to $35,000), Florida Assist ($7,500), and county SHIP programs. Stacking these programs can dramatically reduce or even eliminate your out-of-pocket down payment. Most DPA programs require a 640+ credit score, even when paired with FHA’s 580 minimum.
Your FHA Pre-Approval is 24 Hours Away
Let’s look at your credit score, income, and the Florida assistance programs you qualify for — then build the path that gets you to closing with the least money out of pocket.
