Loan Programs

FHA Loans

FHA loans are government-backed mortgages insured by the Federal Housing Administration, making them one of the most accessible options for first-time homebuyers and borrowers with lower credit scores.

The FHA program exists to make homeownership more accessible. In the Florida Keys, FHA loans help buyers who may not meet the credit or down payment requirements of conventional financing.

FHA loans are available for primary residences only, not vacation homes or investment properties.

Details

Down Payment: 3.5%

With a credit score of 580 or higher, you can put just 3.5% down. For a $400,000 Keys condo, that is only $14,000.

Credit Score Flexibility

FHA loans are more forgiving on credit history. Most lenders want a minimum score of 580, though some may approve scores as low as 500 with a 10% down payment.

Mortgage Insurance Premium (MIP)

FHA loans require an upfront MIP of 1.75% of the loan amount and an annual MIP paid monthly. Unlike conventional PMI, FHA MIP generally cannot be removed.

Loan Limits

FHA loan limits in Monroe County are aligned with conventional limits at $832,750 for a one-unit property in most areas for 2026. Loan limits vary based on the number of units and whether the property is located in a designated high-cost area.

Keys Considerations

FHA loans work well for Keys condos, but the project must meet FHA approval requirements. Not all Keys condo associations are FHA-approved.

FAQ

What credit score do I need for an FHA loan?

Most lenders require a minimum score of 580 for the 3.5% down option. Some accept scores as low as 500 with 10% down.

Can I use an FHA loan for a Keys condo?

Yes, but the condo project must be FHA-approved. Check with me before making an offer.

Can I use an FHA loan for a vacation home?

No. FHA loans are for primary residences only.

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