Everything You Need to Know About Florida FHA Loan Limits

Buying a home in Florida can be expensive, which is why many homebuyers turn to FHA loans. These government-backed mortgages offer competitive interest rates and down payments as low as 3.5%. However FHA loans also come with limits on how much you can borrow. It’s important to understand Florida FHA loan limits so you can qualify for the maximum amount.

In this comprehensive guide. we’ll cover everything you need to know about Florida FHA loan limits for 2024. including

• What Are FHA Loan Limits?
• How FHA Loan Limits Are Determined
• Florida Statewide FHA Loan Limits
• County-Specific FHA Loan Limits in Florida
• Lowest & Highest FHA Loan Limits in Florida
• How to Qualify for an FHA Loan in Florida
• Tips for Maximizing Your Florida FHA Loan Amount

Let’s start with the basics

What Are FHA Loan Limits?

FHA loan limits are maximum mortgage amounts set by the Federal Housing Administration (FHA) that vary by location. The FHA insures loans up to these limits, protecting lenders from losses if borrowers default.

In essence, FHA loan limits determine the maximum amount you can borrow with an FHA loan based on where you live. Loan limits exist to keep FHA lending in check so the agency doesn’t insure super jumbo mortgages.

FHA loans are popular amongst first-time homebuyers because they require lower down payments and credit scores compared to conventional mortgages. However, FHA loan limits may prevent buyers from financing luxury homes in high-cost areas.

How FHA Loan Limits Are Determined

The Federal Housing Finance Agency (FHFA) sets maximum conforming loan limits each year based on changes in home prices nationwide. The FHA then calculates its own loan limits as percentages of the FHFA conforming limits.

For 2024, the baseline FHFA conforming limit is $766,550. So the FHA applies the following formulas:

• Floor = 65% of conforming limit = $498,257
• Ceiling = 150% of conforming limit = $1,149,825

Floor and ceiling limits represent the minimum and maximum FHA loan amounts nationwide. However, specific FHA loan limits for each county are set between 65-150% of local conforming loan limits.

This means FHA loan limits adjust to home values in your specific area. High-cost counties get higher FHA loan limits, while lower-cost areas get lower limits.

Florida Statewide FHA Loan Limits

Across Florida, FHA loan limits for 2024 span from a floor of $498,257 up to a ceiling of $1,149,825 depending on the county.

Here are the base FHA loan limits for Florida:

• 1-Unit: $498,257
• 2-Unit: $637,950
• 3-Unit: $771,125
• 4-Unit: $958,350

A 1-unit home is a single-family house, while 2-4 units refer to duplexes, triplexes, and 4-plexes bought under FHA guidelines. Multi-unit loan limits are higher because the FHA allows them to be rented out.

These base loan limits act as a starting point. Actual limits adjust higher or lower for each county depending on housing costs.

We’ll take a closer look at county variations next.

County-Specific FHA Loan Limits in Florida

While Florida has base statewide loan limits, the FHA adjusts these for all 67 counties individually.

For example, let’s look at Duval County (Jacksonville) and Monroe County (Florida Keys):

Duval County:

• 1-Unit: $564,650
• 2-Unit: $722,850
• 3-Unit: $873,750
• 4-Unit: $1,085,900

Monroe County:

• 1-Unit: $929,200
• 2-Unit: $1,189,550
• 3-Unit: $1,437,900
• 4-Unit: $1,786,950

As you can see, FHA loan limits scale higher in Monroe County where home values are elevated. But they remain lower in Duval County where real estate is more affordable.

This keeps FHA loans accessible for homebuyers across Florida regardless of housing costs in their area. Use the FHA loan limit tool linked below to check limits specific to your county:

https://entp.hud.gov/idapp/html/hicostlook.cfm

Lowest & Highest FHA Loan Limits in Florida

Across all 67 counties in Florida, FHA loan limits range considerably:

Lowest 2024 FHA Loan Limits in Florida:

• 1-Unit: $498,257 (multiple counties)
• 2-Unit: $637,950 (multiple counties)
• 3-Unit: $771,125 (multiple counties)
• 4-Unit: $958,350 (multiple counties)

Highest 2024 FHA Loan Limits in Florida:

• 1-Unit: $929,200 (Monroe County)
• 2-Unit: $1,189,550 (Monroe County)
• 3-Unit: $1,437,900 (Monroe County)
• 4-Unit: $1,786,950 (Monroe County)

The lowest limits apply to 45 counties, primarily in northern and central Florida where real estate is very affordable. Meanwhile, Monroe County has the highest limits due to ultra-expensive homes in the Keys.

So depending on location, FHA loans in Florida may finance anything from modest homes to luxury properties nearing $1 million in value.

How to Qualify for an FHA Loan in Florida

While FHA loan limits control the mortgage amount, you also must meet eligibility requirements:

Credit Score: At least 580 for 3.5% down, 500+ for 10% down

Down payment: Minimum 3.5% of purchase price

Debt-to-income ratio: Typically below 43%

Home appraisal: Home must appraise for purchase price or higher

Residence: Must be your primary residence for at least 1 year

Mortgage insurance: Upfront and annual mortgage insurance premiums

Provided your loan amount is below the FHA limit for your area, meeting these requirements allows you to qualify for an FHA mortgage. Down payments as low as 3.5% make these loans extremely affordable.

Let’s wrap up with tips for maximizing your buying power.

Tips for Maximizing Your Florida FHA Loan Amount

While FHA loans offer low down payments, you can strategize to qualify for the highest possible loan limit:

• Save a larger down payment – Putting down more than 3.5% down expands your purchasing power.

• Lower your DTI – Reducing other monthly debts like cars and credit cards allows you to safely borrow more.

• Boost your credit – Good credit scores lead to better mortgage rates and more financing options.

• Pick a lower-cost area – Buy in an affordable county like Alachua rather than Monroe if possible.

• Opt for a smaller home – A modest house rather than a luxury property lets you maximize FHA loan amounts.

• Buy a multi-unit – 2-4 unit homes have higher base FHA loan limits you may fully utilize.

Using these tips, you can find ways to borrow the maximum within Florida FHA loan limits while keeping your monthly mortgage payment affordable.

The Bottom Line

Hopefully this guide gave you a full understanding of Florida FHA loan limits and how they work. The key takeaways include:

• FHA loan limits determine maximum amounts you can borrow based on location.

• Statewide limits in Florida range from $498,257 to $1,149,825.

• Specific county limits fall between 65-150% of local conforming loan limits.

• Lowest limits are $498,257 for 1-unit homes.

• Highest limits reach $1.7 million for 4-units in Monroe County.

• Meeting eligibility like 3.5% down and 580+ score allows you to qualify.

• Tips like raising your credit and income potential allow you to maximize FHA financing.

So make sure you check the FHA loan limits in your target home buying county. This lets you take full advantage of FHA loans to buy the right home for your budget in Florida!