FHA Loan
An FHA loan is a mortgage insured by the Federal Housing Administration, built for borrowers with lower credit scores or smaller down payments.
What FHA Loan means
It allows as little as 3.5% down with a 580 score and is more forgiving on credit history. The trade-off is mortgage insurance: 1.75% upfront plus an annual premium that often lasts the life of the loan.
Florida example
A Florida buyer with a 600 score and $13,000 saved uses FHA to buy a $360,000 home with 3.5% down. The 2025 FHA limit in most Florida counties is $524,225, covering the bulk of the state's inventory.
A government-backed loan
An FHA loan is insured by the Federal Housing Administration. That backing lets lenders offer a 3.5% down payment and a credit score as low as 580. It is popular with first-time and rebuilding buyers.
The lower bar makes homeownership reachable for more Florida families.
The trade-off
FHA charges mortgage insurance, an upfront premium plus a monthly one, and on most loans it stays for the life of the loan unless you refinance.
For many buyers, that cost is worth getting in now. Reach out and we will compare FHA against your other options.
Related program: Learn more →
Verify the details for your own situation against these government and agency sources: HUD FHA loan program and HUD Handbook 4000.1 (FHA rules).