The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934. The federal government insures loans for FHA-approved lenders in order to reduce their risk of loss if a borrower defaults on their mortgage payments
FHA loans are very popular, especially with first-time home buyers because the requirements are less strict than conventional loans. Borrowers can qualify for an FHA loan with a down payment as little as 3.5% and a credit score of 580 or higher.
What determines the FHA loan limits?
FHA loan limits are determined on a county-by-county basis, primarily based on the median home prices from the previous year.
The Federal Housing Finance Agency (FHFA) uses housing price data to establish conforming loan limits for conventional loans.
The U.S. Department of Housing and Urban Development (HUD) employs these limits to set both a “floor” and a “ceiling” for FHA loans.
The “floor” represents the maximum loan amount available for FHA loans in most regions, calculated as 65% of the conforming loan limit.
In contrast, the “ceiling” pertains to high-cost areas and can be as much as 150% of the conforming loan limit.
In 2024, Florida has new FHA loan ceilings of $498,257 for one-family properties, $637,950 for two-family properties, $771,125 for three-family properties, and $958,350 for four-family properties. Some high cost of living counties with higher home prices may exceed these limits.
Is mortgage insurance required for an FHA loan?
Yes, it is required.
FHA loan requires two kinds of mortgage insurance premiums: one that can be financed into the mortgage, and the other one in the monthly payment.
Upfront mortgage insurance premium (UFMIP) — this is a one-time upfront monthly premium payment, which means borrowers will pay a premium of 1.75% of the home loan, regardless of their credit score. Example: $300,000 loan x 1.75% = $5,250.00
Annual MIP (charged monthly) — Called an annual premium, this is actually a monthly charge that will be figured into your mortgage payment. The amount of the mortgage insurance premium is a percentage of the loan amount, based on the borrower’s loan-to-value (LTV) ratio, loan size, and length of loan:
| Loan Term | LTV Ratio | Annual Insurance Premium |
| 30 years | 95% or less | 0.55% |
| 30 years | Over 95% | 0.50% |
How Long Do Borrowers Have to Pay FHA Mortgage Insurance
The duration of your annual MIP will depend on the amortization term and LTV ratio on your loan origination date. For loans with FHA case numbers assigned on or after June 3, 2013 borrowers will have to pay mortgage insurance for the entire loan term if the LTV is greater than 90% at the time the loan was originated. If your LTV was 90% or less, the borrower will pay mortgage insurance for the mortgage term or 11 years, whichever occurs first.
| Term | Loan-to-Value (LTV) Ratio | Duration |
| 15 years or less | 78% or less | 11 years |
| 15 years or less | 79-89% | 11 years |
| 15 years or less | 90% or higher | Full loan term |
| Over 15 years | 78% or less | 11 years |
| Over 15 years | 79-89% | 11 years |
| Over 15 years | 90% or higher | Full loan term |
How much are the 2024 FHA loan limits?
The Federal Housing Authority sets maximum mortgage limits for FHA loans that vary each year by state and county.
The Federal Housing Administration (FHA) sets its own loan limits, distinct from conforming loan limits.
In 2024, Florida experienced an increase in its FHA loan limits, establishing a new ceilings for single family homes (one-family), duplexes (two-family), triplexes (three-family) and fourplexes (four-family).
However, some Florida counties go even higher due to elevated median home prices.
For example, Key West (Monroe County), Naples (Collier County), Miami (Miami-Dade County), West Palm Beach (Palm Beach County), and Fort Lauderdale (Broward County) are some of the cities where you can find higher FHA loan limits.
2024 FHA County Loan Limits Florida
| Florida County | One-Family | Two-Family | Three-Family | Four-Family | Median Sale Price |
|---|---|---|---|---|---|
| ALACHUA | $498,257 | $637,950 | $771,125 | $958,350 | $305,000 |
| BAKER | $564,650 | $722,850 | $873,750 | $1,085,900 | $491,000 |
| BAY | $498,257 | $637,950 | $771,125 | $958,350 | $320,000 |
| BRADFORD | $498,257 | $637,950 | $771,125 | $958,350 | $170,000 |
| BREVARD | $498,257 | $637,950 | $771,125 | $958,350 | $342,000 |
| BROWARD | $621,000 | $795,000 | $960,950 | $1,194,250 | $540,000 |
| CALHOUN | $498,257 | $637,950 | $771,125 | $958,350 | $75,000 |
| CHARLOTTE | $498,257 | $637,950 | $771,125 | $958,350 | $329,000 |
| CITRUS | $498,257 | $637,950 | $771,125 | $958,350 | $235,000 |
| CLAY | $564,650 | $722,850 | $873,750 | $1,085,900 | $491,000 |
| COLLIER | $730,250 | $934,850 | $1,130,000 | $1,404,350 | $635,000 |
| COLUMBIA | $498,257 | $637,950 | $771,125 | $958,350 | $174,000 |
| DESOTO | $498,257 | $637,950 | $771,125 | $958,350 | $180,000 |
| DIXIE | $498,257 | $637,950 | $771,125 | $958,350 | $92,000 |
| DUVAL | $564,650 | $722,850 | $873,750 | $1,085,900 | $491,000 |
| ESCAMBIA | $498,257 | $637,950 | $771,125 | $958,350 | $325,000 |
| FLAGLER | $498,257 | $637,950 | $771,125 | $958,350 | $350,000 |
| FRANKLIN | $498,257 | $637,950 | $771,125 | $958,350 | $166,000 |
| GADSDEN | $498,257 | $637,950 | $771,125 | $958,350 | $250,000 |
| GILCHRIST | $498,257 | $637,950 | $771,125 | $958,350 | $305,000 |
| GLADES | $498,257 | $637,950 | $771,125 | $958,350 | $175,000 |
| GULF | $498,257 | $637,950 | $771,125 | $958,350 | $310,000 |
| HAMILTON | $498,257 | $637,950 | $771,125 | $958,350 | $100,000 |
| HARDEE | $498,257 | $637,950 | $771,125 | $958,350 | $125,000 |
| HENDRY | $498,257 | $637,950 | $771,125 | $958,350 | $215,000 |
| HERNANDO | $498,257 | $637,950 | $771,125 | $958,350 | $400,000 |
| HIGHLANDS | $498,257 | $637,950 | $771,125 | $958,350 | $200,000 |
| HILLSBOROUGH | $498,257 | $637,950 | $771,125 | $958,350 | $400,000 |
| HOLMES | $498,257 | $637,950 | $771,125 | $958,350 | $122,000 |
| INDIAN RIVER | $498,257 | $637,950 | $771,125 | $958,350 | $366,000 |
| JACKSON | $498,257 | $637,950 | $771,125 | $958,350 | $130,000 |
| JEFFERSON | $498,257 | $637,950 | $771,125 | $958,350 | $250,000 |
| LAFAYETTE | $498,257 | $637,950 | $771,125 | $958,350 | $100,000 |
| LAKE | $498,257 | $637,950 | $771,125 | $958,350 | $426,000 |
| LEE | $498,257 | $637,950 | $771,125 | $958,350 | $370,000 |
| LEON | $498,257 | $637,950 | $771,125 | $958,350 | $250,000 |
| LEVY | $498,257 | $637,950 | $771,125 | $958,350 | $305,000 |
| LIBERTY | $498,257 | $637,950 | $771,125 | $958,350 | $79,000 |
| MADISON | $498,257 | $637,950 | $771,125 | $958,350 | $82,000 |
| MANATEE | $547,400 | $700,750 | $847,050 | $1,052,700 | $476,000 |
| MARION | $498,257 | $637,950 | $771,125 | $958,350 | $262,000 |
| MARTIN | $546,250 | $699,300 | $845,300 | $1,050,500 | $475,000 |
| MIAMI-DADE | $621,000 | $795,000 | $960,950 | $1,194,250 | $540,000 |
| MONROE | $929,200 | $1,189,550 | $1,437,900 | $1,786,950 | $808,000 |
| NASSAU | $564,650 | $722,850 | $873,750 | $1,085,900 | $491,000 |
| OKALOOSA | $603,750 | $772,900 | $934,250 | $1,161,050 | $518,000 |
| OKEECHOBEE | $498,257 | $637,950 | $771,125 | $958,350 | $150,000 |
| ORANGE | $498,257 | $637,950 | $771,125 | $958,350 | $426,000 |
| OSCEOLA | $498,257 | $637,950 | $771,125 | $958,350 | $426,000 |
| PALM BEACH | $621,000 | $795,000 | $960,950 | $1,194,250 | $540,000 |
| PASCO | $498,257 | $637,950 | $771,125 | $958,350 | $400,000 |
| PINELLAS | $498,257 | $637,950 | $771,125 | $958,350 | $400,000 |
| POLK | $498,257 | $637,950 | $771,125 | $958,350 | $315,000 |
| PUTNAM | $498,257 | $637,950 | $771,125 | $958,350 | $117,000 |
| SANTA ROSA | $498,257 | $637,950 | $771,125 | $958,350 | $325,000 |
| SARASOTA | $547,400 | $700,750 | $847,050 | $1,052,700 | $476,000 |
| SEMINOLE | $498,257 | $637,950 | $771,125 | $958,350 | $426,000 |
| ST. JOHNS | $564,650 | $722,850 | $873,750 | $1,085,900 | $491,000 |
| ST. LUCIE | $546,250 | $699,300 | $845,300 | $1,050,500 | $475,000 |
| SUMTER | $498,257 | $637,950 | $771,125 | $958,350 | $370,000 |
| SUWANNEE | $498,257 | $637,950 | $771,125 | $958,350 | $113,000 |
| TAYLOR | $498,257 | $637,950 | $771,125 | $958,350 | $120,000 |
| UNION | $498,257 | $637,950 | $771,125 | $958,350 | $131,000 |
| VOLUSIA | $498,257 | $637,950 | $771,125 | $958,350 | $350,000 |
| WAKULLA | $498,257 | $637,950 | $771,125 | $958,350 | $250,000 |
| WALTON | $603,750 | $772,900 | $934,250 | $1,161,050 | $518,000 |
| WASHINGTON | $498,257 | $637,950 | $771,125 | $958,350 | $119,000 |
How long does an FHA borrower has to wait to buy again after a bankruptcy, short sale or foreclosure?
Another advantage of an FHA loan is for borrowers who have undergone a major credit event. The event seasoning requirement is much shorter than conventional loans. For Chapter 7 Bankruptcy is 2 years from discharge. For Chapter 13 Bankruptcy is 1 year of payment period with satisfactory performance and permission from the court. For Short Sales and Foreclosures, the seasoning is 3 years from completion.
How Can I Qualify for an FHA loan in Florida?
An FHA-backed loan provides homebuyers in Florida with an opportunity to purchase a home with a lower credit score and a smaller down payment compared to conventional loan requirements.
Here’s a general guide on how to qualify for an FHA loan in Florida in 2024:
1. Credit Score Requirements
- Minimum Credit Score: Typically, a minimum credit score of 580 is required for an FHA loan, allowing a down payment as low as 3.5%.
- Lower Credit Scores: Applicants with credit scores between 500 and 579 may still be eligible but might need a down payment of at least 10%.
2. Down Payment
- Standard Down Payment: With a credit score of 580 or higher, a 3.5% down payment is standard.
- Gift Funds: FHA loans permit down payments using gift funds, subject to specific conditions and documentation.
3. Debt-to-Income Ratio (DTI)
- DTI Limits: Depending on your credit score, your DTI should not exceed 43% or 56.99%, comparing your gross monthly income to your monthly debt obligations.
- Higher DTI Ratios: With higher credit scores, lenders may accept higher DTI ratios if there are compensating factors, like a larger down payment.
4. Mortgage Insurance
- Upfront and Annual Premiums: FHA loans require both upfront and annual mortgage insurance premiums (MIP), as detailed above. The upfront MIP can be rolled into the mortgage, while the annual MIP is paid monthly as part of your mortgage payment.
5. Property Requirements
- Primary Residence: The property must serve as your primary residence, and it cannot be a second home or an investment property.
- FHA Appraisal: An FHA-approved appraiser must assess the property to ensure it meets specific safety, security, and structural integrity standards.
6. Employment History
- Stable, Predictable, and Likely to Continue Employment: Lenders generally prefer a stable employment history, usually two years with the same employer or in the same line of work.
7. Income Verification
- Proof of Income: Provide proof of income through pay stubs, tax returns, and W-2s.
- Consistent Income: The income should be consistent and expected to continue.
8. Loan Limits
- Adherence to Loan Limits: Ensure that the loan amount you seek falls within the FHA loan limits for your area in Florida.
9. Additional Documentation
- Identification: A valid government-issued ID.
- Social Security Number: Required for all borrowers on the loan application.
- Additional Documents: Depending on the lender, other documentation may be necessary.
10. Lender Specific Requirements
- Lender Overlay: Some lenders may have additional ‘overlays’ or requirements beyond what the FHA mandates.
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