FHA Loan Down Payment Requirements in Florida: A Complete Guide

Are nightmares about the home financing process keeping you up at night? If so, give Dash Home Loans a shot. We do mortgage lending differently and make getting approved for a Florida FHA loan a dream.

Backed by the Federal Housing Administration, FHA home loans are a great choice for low-to moderate-income homebuyers with less-than-stellar credit.

If you’re nervous about getting qualified for a conventional loan, an FHA loan might do the trick.

Buying a home in the Sunshine State is an exciting milestone, but saving up for a down payment can feel daunting. That’s where FHA loans come in – they only require a 3.5% down payment for qualifying borrowers. Keep reading to learn everything you need to know about FHA loan down payment and other requirements in Florida.

FHA Loan Overview

FHA loans are government-insured mortgages that allow for lower down payments and credit scores versus conventional loans, Here are some key features

Insured by the Federal Housing Administration (FHA)
Offered by FHA-approved lenders
Require as low as 3.5% down payment
Minimum 500 credit score
Lower mortgage insurance premiums than conventional loans

FHA loans help make homeownership attainable for more buyers Now let’s dive into the specifics for Florida

Florida FHA Loan Limits

The first FHA requirement is staying under the maximum loan limit set for each county Here are the current 2022 limits for Florida

Most counties: $420,680
Monroe County: $710,700

You can look up the exact limit for your county here. The home’s purchase price must fall at or under the limit to qualify for FHA financing.

Florida FHA Down Payment Options

The FHA down payment requirement depends on your credit score:

500-579 credit score: At least 10% down payment
580+ credit score: Minimum 3.5% down payment

So with a 580+ score, you can buy a $300,000 home in Florida with just $10,500 down!

The down payment does not have to be your own funds either. You can use gifts, grants, or other approved sources.

Other Florida FHA Loan Requirements

In addition to the down payment, here are other key FHA loan requirements in Florida:

Credit score – Minimum 500
Debt-to-income ratio – Maximum 57%
Occupancy – Must be owner-occupied primary residence
Mortgage history – No late housing payments in past 12 months
Bankruptcy – At least 2 years since discharge
Foreclosure – At least 3 years since

Meeting these requirements qualifies you for a Florida FHA loan with just 3.5% down if your credit score is 580+!

How to Apply for an FHA Loan in Florida

Ready to move forward with an FHA loan? Here are the steps:

Check your credit score and report for errors
Get pre-approved to see your rate and down payment
Shop for homes within your approved loan amount
Make an offer and get an accepted contract
Complete the full loan application and provide documents
Get an appraisal and inspection done
Receive final loan approval
Close on your new home!

Throughout the process, your lender will guide you on next steps.

Benefits of a Florida FHA Loan

Why choose FHA versus conventional financing? Here are some top benefits:

Low 3.5% down payment option
More flexible credit score requirements
Lower monthly mortgage insurance
assumable FHA loans can be transferred to new owners
Streamlined FHA refinance available

An FHA loan opens the door to homeownership sooner for Florida buyers.

Find the Best FHA Lender

Not all lenders offer FHA loans, so find one with experience to ensure a smooth process. Look for these features:

Charges reasonable fees
Responsive customer service
Closes loans quickly
Offers rate discounts
Has positive reviews

A good lender guides you through every step and helps you get the best deal.

Start Your Florida FHA Loan Journey

If you’re looking to buy a home with minimal cash down, an FHA loan is a great option in Florida. Just meet the minimum 500 credit score and 3.5-10% down payment requirement to qualify. Then connect with a trusted FHA lender to start your application today and get one step closer to owning your own piece of the Sunshine State!

What Is an FHA Home Loan?

An FHA home loan is a mortgage guaranteed by the Federal Housing Administration*.

This means if you ever default, the federal government will pay a premium to your lender for the remaining balance.

Because of this, lenders are willing to loan money at competitive interest rates to borrowers with below-average credit scores.

Unlike USDA loans in Florida, another type of government-backed mortgage, Florida FHA loans don’t have any income restrictions.

However, there are lending limits. In 2022, limits range from $420,680 to $970,800, depending on where you live.

What Are FHA Loan Requirements in Florida?

To receive an FHA loan in Florida, you must meet Florida FHA loan requirements. In the Sunshine State, these requirements are:

A credit score of at least 580. If you have a FICO* score in the 500 to 579 range, you could still qualify for an FHA loan. However, you’ll be expected to put 10% down.
Putting at least 3.5% down. To receive an FHA loan, you must have the cash reserves to put down at least 3.5% of your loan amount.
Choosing a home with a 15-year or 30-year term.
Purchasing mortgage insurance. Your annual premium will vary depending on the loan amount and term.
A debt-to-income ratio less than 57% in some circumstances. To calculate your debt-to-income ratio, divide your monthly debt payments by your gross income.
A housing ratio of 31% or less. A housing ratio is calculated by dividing the sum of all property expenses by pretax income.

Many homebuyers assume Florida FHA loans have income restrictions. However, FHA home loans are available to families from all socioeconomic classes — there’s no income ceiling or floor.

The caveat? FHA lenders will consider your debt-to-income ratio. This figure is calculated by dividing your monthly debt payments by your pretax income. Most lenders prefer that borrowers have a DTI of less than 57 percent. Lenders will also look at your housing ratio. This measures what percentage of your gross income will go to housing-related expenses like principal, interest, taxes, and insurance.

All this to say, FHA home loans don’t require that you make a specific amount of money*. However, if you’re juggling several auto loans and a heap of credit card debt, a larger salary will decrease your DTI and housing ratio, making you a more competitive applicant.

fha loan florida down payment

100% LOAN / 0% DOWN PAYMENT USING AN FHA LOAN 2024

FAQ

How much do you have to put down on an FHA loan in Florida?

FHA Loan Program Basics: Down payment requirements could be as high as 30-40% or more, even higher. This kept many out of homeownership and stuck being renters. Today, the FHA mortgages require just a 3.5% down payment, and this one of the many reasons why first time buyers in Florida choose the program.

What is the $35000 down payment assistance program in Florida?

Program Details: Borrowers can receive up to 5% of the first mortgage loan amount (maximum of $35,000) in down payment and closing cost assistance. Down payment and closing cost assistance is available in the form of a 0%, non-amortizing, 30-year deferred second mortgage.

Does FHA require 5% down?

Key takeaways. FHA loans require a minimum 3.5 percent down payment for borrowers with a credit score of 580 or more. Borrowers with a credit score of 500 to 579 need to put 10 percent down to get an FHA loan. Conventional conforming mortgages only require 3 percent down, and VA and USDA loans require no down payment.

What happens if I put $20 down on an FHA loan?

If you put 20% down on an FHA loan, you would pay a lower annual mortgage insurance premium. The premium requirement would also stop after 11 years. However, if you have 20% to put down and your credit score is 620 or higher, you may want to pursue a conventional loan instead.