Loan Programs · FHA

FHA loans in Florida.

Government-backed financing with 3.5% down and flexible credit requirements. The most accessible path to homeownership for first-time buyers and buyers rebuilding credit.

3.5%

Min. Down Payment

580

Min. Credit Score

57%

Max DTI

Yes

MIP Required

What is an FHA loan?

Government-insured, lender-issued.

FHA loans are mortgages insured by the Federal Housing Administration, a division of HUD. The FHA doesn't lend money — approved private lenders do. The FHA's insurance guarantee allows lenders to offer lower down payments and more flexible qualification standards because the government backs their risk.

Created in 1934 to stabilize the housing market during the Depression, FHA loans remain the most widely used first-time buyer program in the U.S. In Florida, FHA loans account for a significant share of transactions in the $200K–$500K price range.

The trade-off for relaxed qualification: you pay mortgage insurance premium (MIP) — both an upfront premium (1.75% of the loan amount, typically financed in) and an annual premium (0.45–1.05% of the loan balance, paid monthly).

FHA eligibility requirements

Credit Score
580+ for 3.5% down. 500–579 for 10% down. Below 500 is ineligible.
Down Payment
3.5% minimum with 580+ credit. Can be gifted by a family member.
DTI Ratio
Up to 43% standard; up to 57% with compensating factors (higher credit, reserves).
Employment
2 years of employment history. Recent college graduates may qualify sooner.
Occupancy
Primary residence only. You must move in within 60 days of closing.
Property Condition
Must meet HUD minimum property standards. Fixer-uppers may require repairs before closing.
Loan Limits
Set by county. 2025 limit for Orange County: $524,225 for single-family.

2025 Limits

FHA loan limits by county.

Single-family residence (1 unit). Higher limits apply for 2–4 unit properties.

County2025 Limit
Orange County$524,225
Osceola County$524,225
Seminole County$524,225
Lake County$524,225
Brevard County$498,257
Polk County$472,030
Volusia County$498,257
Hillsborough County$524,225
Pinellas County$524,225

Side by side

FHA vs. conventional — which wins?

Choose FHA when:

  • Your credit score is below 680
  • You have less than 5% for a down payment
  • You have a higher debt-to-income ratio
  • You have recent credit events (collections, late payments)
  • You're a first-time buyer and want lower barriers to entry

Choose conventional when:

  • Your credit score is 680 or higher
  • You can put 20% down and avoid PMI entirely
  • The home needs work and may not pass FHA inspection
  • You want to buy a condo in a non-FHA-approved project
  • You plan to refinance or sell within 3–5 years (no MIP for life)

Common questions

FHA loan FAQs.

Can I use an FHA loan to buy a condo in Orlando?

Yes, but the condo project must be on HUD's approved condo list or receive spot approval. Many Orlando condo communities are FHA-approved; others are not. Your loan officer can check approval status for any specific building.

Is FHA mortgage insurance for the life of the loan?

If you put less than 10% down, MIP lasts the life of the loan. If you put 10% or more down, MIP drops off after 11 years. The best way to eliminate FHA MIP is to build enough equity (usually 20%) and refinance into a conventional loan.

Can I have an FHA loan and buy a second home?

FHA is designed for primary residences only. You can have one FHA loan at a time. Exceptions exist for job relocation, family size increase, or co-signing — but generally, FHA doesn't finance investment properties or vacation homes.

What is the FHA loan limit for Orange County Florida?

The 2025 FHA loan limit for Orange County (and the Orlando MSA) is $524,225 for a single-family home. Limits are higher for 2–4 unit properties.

Ready to check your FHA eligibility?

A 10-minute call is all it takes to know whether FHA is the right program — or whether a conventional loan saves you more money.

Ryan Solberg · MLO NMLS #1784218 · Mortgageinc NMLS #2028516 · Licensed in Florida