Loan Limits & Requirements
If you don’t have the savings to pay a large down payment or a great credit score when buying a home, a Federal Housing Administration (FHA) loan can help. It can make it easier to get approved for a loan with lower down payments.
You can buy a home with as little as 3.5 percent of the purchase price as a down payment. This money can be drawn from your checking, savings, and money market accounts. Members of your family can also assist by gifting money to you.
The FHA also allows sellers to contribute up to 6% of the purchase price to help buyers cover closing costs. This can be negotiated with the seller if required.
If your credit score isn’t fantastic it is easier to be approved for an FHA mortgage loan. If you want to purchase a home using an FHA insured loan, you’ll have to make sure it meets the loan requirements.
2023 FHA Loan Limits in Florida
The FHA has maximum loan amounts, and this depends on the location and type of home.
The loan limits vary based on the county, with Monroe in Key West currently having the highest limit of $874,000. The majority of counties have a loan limit of $472,030 for single-family homes.
| County | One-Family | Two-Family | Three-Family | Four-Family | Median Sale Price |
|---|---|---|---|---|---|
| ALACHUA | $472,030 | $604,400 | $730,525 | $907,900 | $275,000 |
| BAKER | $526,700 | $674,250 | $815,050 | $1,012,900 | $458,000 |
| BAY | $472,030 | $604,400 | $730,525 | $907,900 | $294,000 |
| BRADFORD | $472,030 | $604,400 | $730,525 | $907,900 | $165,000 |
| BREVARD | $472,030 | $604,400 | $730,525 | $907,900 | $310,000 |
| BROWARD | $557,750 | $714,000 | $863,100 | $1,072,600 | $485,000 |
| CALHOUN | $472,030 | $604,400 | $730,525 | $907,900 | $94,000 |
| CHARLOTTE | $472,030 | $604,400 | $730,525 | $907,900 | $294,000 |
| CITRUS | $472,030 | $604,400 | $730,525 | $907,900 | $201,000 |
| CLAY | $526,700 | $674,250 | $815,050 | $1,012,900 | $458,000 |
| COLLIER | $672,750 | $861,250 | $1,041,050 | $1,293,750 | $585,000 |
| COLUMBIA | $472,030 | $604,400 | $730,525 | $907,900 | $150,000 |
| DESOTO | $472,030 | $604,400 | $730,525 | $907,900 | $191,000 |
| DIXIE | $472,030 | $604,400 | $730,525 | $907,900 | $90,000 |
| DUVAL | $526,700 | $674,250 | $815,050 | $1,012,900 | $458,000 |
| ESCAMBIA | $472,030 | $604,400 | $730,525 | $907,900 | $320,000 |
| FLAGLER | $472,030 | $604,400 | $730,525 | $907,900 | $328,000 |
| FRANKLIN | $472,030 | $604,400 | $730,525 | $907,900 | $170,000 |
| GADSDEN | $472,030 | $604,400 | $730,525 | $907,900 | $229,000 |
| GILCHRIST | $472,030 | $604,400 | $730,525 | $907,900 | $275,000 |
| GLADES | $472,030 | $604,400 | $730,525 | $907,900 | $165,000 |
| GULF | $472,030 | $604,400 | $730,525 | $907,900 | $255,000 |
| HAMILTON | $472,030 | $604,400 | $730,525 | $907,900 | $110,000 |
| HARDEE | $472,030 | $604,400 | $730,525 | $907,900 | $110,000 |
| HENDRY | $472,030 | $604,400 | $730,525 | $907,900 | $173,000 |
| HERNANDO | $472,030 | $604,400 | $730,525 | $907,900 | $365,000 |
| HIGHLANDS | $472,030 | $604,400 | $730,525 | $907,900 | $180,000 |
| HILLSBOROUGH | $472,030 | $604,400 | $730,525 | $907,900 | $365,000 |
| HOLMES | $472,030 | $604,400 | $730,525 | $907,900 | $125,000 |
| INDIAN RIVER | $472,030 | $604,400 | $730,525 | $907,900 | $335,000 |
| JACKSON | $472,030 | $604,400 | $730,525 | $907,900 | $123,000 |
| JEFFERSON | $472,030 | $604,400 | $730,525 | $907,900 | $229,000 |
| LAFAYETTE | $472,030 | $604,400 | $730,525 | $907,900 | $100,000 |
| LAKE | $472,030 | $604,400 | $730,525 | $907,900 | $390,000 |
| LEE | $472,030 | $604,400 | $730,525 | $907,900 | $345,000 |
| LEON | $472,030 | $604,400 | $730,525 | $907,900 | $229,000 |
| LEVY | $472,030 | $604,400 | $730,525 | $907,900 | $275,000 |
| LIBERTY | $472,030 | $604,400 | $730,525 | $907,900 | $78,000 |
| MADISON | $472,030 | $604,400 | $730,525 | $907,900 | $80,000 |
| MANATEE | $506,000 | $647,750 | $783,000 | $973,100 | $440,000 |
| MARION | $472,030 | $604,400 | $730,525 | $907,900 | $240,000 |
| MARTIN | $500,250 | $640,400 | $774,100 | $962,050 | $435,000 |
| MIAMI-DADE | $557,750 | $714,000 | $863,100 | $1,072,600 | $485,000 |
| MONROE | $874,000 | $1,118,900 | $1,352,450 | $1,680,800 | $760,000 |
| NASSAU | $526,700 | $674,250 | $815,050 | $1,012,900 | $458,000 |
| OKALOOSA | $603,750 | $772,900 | $934,250 | $1,161,050 | $525,000 |
| OKEECHOBEE | $472,030 | $604,400 | $730,525 | $907,900 | $120,000 |
| ORANGE | $472,030 | $604,400 | $730,525 | $907,900 | $390,000 |
| OSCEOLA | $472,030 | $604,400 | $730,525 | $907,900 | $390,000 |
| PALM BEACH | $557,750 | $714,000 | $863,100 | $1,072,600 | $485,000 |
| PASCO | $472,030 | $604,400 | $730,525 | $907,900 | $365,000 |
| PINELLAS | $472,030 | $604,400 | $730,525 | $907,900 | $365,000 |
| POLK | $472,030 | $604,400 | $730,525 | $907,900 | $295,000 |
| PUTNAM | $472,030 | $604,400 | $730,525 | $907,900 | $115,000 |
| SANTA ROSA | $472,030 | $604,400 | $730,525 | $907,900 | $320,000 |
| SARASOTA | $506,000 | $647,750 | $783,000 | $973,100 | $440,000 |
| SEMINOLE | $472,030 | $604,400 | $730,525 | $907,900 | $390,000 |
| ST. JOHNS | $526,700 | $674,250 | $815,050 | $1,012,900 | $458,000 |
| ST. LUCIE | $500,250 | $640,400 | $774,100 | $962,050 | $435,000 |
| SUMTER | $472,030 | $604,400 | $730,525 | $907,900 | $360,000 |
| SUWANNEE | $472,030 | $604,400 | $730,525 | $907,900 | $110,000 |
| TAYLOR | $472,030 | $604,400 | $730,525 | $907,900 | $99,000 |
| UNION | $472,030 | $604,400 | $730,525 | $907,900 | $155,000 |
| VOLUSIA | $472,030 | $604,400 | $730,525 | $907,900 | $328,000 |
| WAKULLA | $472,030 | $604,400 | $730,525 | $907,900 | $229,000 |
| WALTON | $603,750 | $772,900 | $934,250 | $1,161,050 | $525,000 |
| WASHINGTON | $472,030 | $604,400 | $730,525 | $907,900 | $125,000 |
Florida FHA Loan limits by county
How are Loan Limits Decided?
The FHA home loan limits are set by the U.S. Department of Housing and Urban Development (HUD). They base this on a percentage of the conforming loan limits, as set by the Federal Housing Finance Agency (FHFA). A conforming mortgage follows the rules set by FHFA, which is the majority of mortgages.
The FHA has both a floor that is 65% of the conforming loan limit and a ceiling set at 150%. Typically, the floor limit applies to lower-cost counties. In Florida, low-cost limits are $472,030, with the maximum allowable set at $1,089,300, this is for single units, and there are higher limits for a multi-unit homebuyer.
For example, in Monroe County, the single-unit limit is $874,000, $1,118,900 for 2 units, $1,352,450 for 3 units, and $1,680,800 for the maximum of 4 units. The median sale price in the county is $760,000, so the $874,000 limit leaves room for FHA borrowers to receive all the money they need.
The FHA floor of $472,030 should also allow borrowers the money they need from an FHA mortgage in most cases. In the counties where the FHA floor applies, the median is at least $82,000 below that limit.
Qualify for an FHA Loan
Your loan has to be within the limits for the Florida county, and if your loan is less than $472,030 you don’t have to worry about this wherever the home is within the state. As well as this, there are more general FHA requirements. For instance, the home has to remain your primary residence for a year after purchase. Other requirements include:
Your debt-to-income ratio
Your debt-to-income ratio is your monthly debts compared to your monthly income. While the FHA allows for some exceptions, normally a DTI of 43% is the maximum. Depending on the overall strength of the file, it may be possible to get approved with a higher DTI.
Credit score requirements and down payment
The FHA does offer 3.5% down payment loans, but your credit score has to be at least 580. If your fico score is between 500 and 579, you will only be able to qualify for FHA if you have a 10% down payment.
Mortgage Insurance
With an FHA home loan, you need to pay mortgage insurance to ensure the lender does not lose out should you default on the loan.
There are two mortgage insurance premiums. One is the upfront mortgage insurance premium (UFMIP) which will cost 1.75% of the loan. This needs to be paid when the mortgage starts and is often rolled into the loan.
The second mortgage insurance premium (MIP) has to be paid annually and costs between 0.40% and 0.75% of the loan. This premium is divided by 12 and added to your monthly mortgage payments.
You will continue to pay this premium until the mortgage is paid or you refinance if you have a down payment of less than 10%. If you have a 10% or more down payment and you have reliably been paying your mortgage, this premium is usually canceled after 11 years.
FHA appraisal
Before your loan will be approved, an appraiser will need to assess the property. They will assess the value of the home using comparable home sales locally to ensure the home is worth the price.
The condition of the home will also be assessed. FHA guidelines will be used to ensure the home is in good enough condition.
Using FHA to Buy a Multi-Family Property
If you are buying a multi-family home with up to four units, you could qualify for FHA. You do have to be the resident of one of the units, and you could use the rental income from the other units to help with your approval.
You will still be able to buy this property with 3.5% down as long as your credit score is 580 or above. FHA limits are higher for multi-unit properties as well.
Final Thoughts
If you are looking to buy a home using FHA, it could be a great choice. If your credit isn’t great or if you don’t have a lot of money saved for a down payment buying your home will be easier. You will have to meet the FHA requirements and make sure that the loan amount is within their mortgage limits, however.
