Loan Program
FHA Loans
Flexible financing for real-world buyers.
Overview
FHA loans are insured by the Federal Housing Administration and designed for buyers with modest down payments or credit rebuilding to overcome.
Benefits
- 3.5% down payment with 580+ FICO
- More forgiving credit standards
- Gift funds allowed for down payment
- Assumable by future buyers
Typical Requirements
- 580+ FICO for 3.5% down (500–579 with 10% down)
- Primary residence only
- Property must meet FHA condition standards
Who this is for
Buyers who want a lower down payment or have a shorter or more blemished credit history, purchasing a primary residence they will occupy.
How it works
- FHA insures the loan made by an approved lender under HUD's Single Family Housing Policy Handbook 4000.1, which is why more flexible credit profiles can be considered.
- FHA loans carry an upfront mortgage insurance premium plus an annual premium collected monthly; on most loans the annual premium is not cancellable the way conventional PMI is.
- FHA loan limits are set by county, and the property must meet FHA minimum property standards at appraisal.
Eligibility & considerations
| Requirement | What it generally means | Important considerations | Primary source |
|---|---|---|---|
| Program rules | Governed by HUD Handbook 4000.1 and the 203(b) program. | Lender overlays commonly sit above HUD minimums. | HUD / FHA |
| Occupancy | Must be a primary residence you occupy. | Second homes and rentals are not eligible. | HUD / FHA |
| Mortgage insurance | Upfront and annual mortgage insurance premiums apply. | On most FHA loans the annual premium is not removable by equity alone. | HUD / FHA |
| Loan limits | FHA publishes maximum loan amounts by county. | Limits differ across Florida counties and change periodically. | HUD / FHA |
| Property condition | The home must meet FHA minimum property requirements. | Roof age, wind mitigation and condo approval frequently matter in Florida. | HUD / FHA |
Requirements vary by loan program and lender, guidelines can change, and additional lender overlays may apply. Contact NexGen Capital for an individualized assessment.
Documentation you may need
- • Recent pay stubs, W-2s, or tax returns for self-employed income
- • Bank statements sourcing the down payment, including gift documentation if applicable
- • Photo ID and purchase contract
- • FHA appraisal performed by an FHA roster appraiser
Important limitations
- • Owner-occupied primary residences only — no investment purchases.
- • County FHA loan limits cap the loan amount.
- • Condos must be in an FHA-approved project or qualify under single-unit approval.
Common questions
- What credit score do I need for FHA?
- HUD sets baseline standards, but the score a lender will actually accept depends on overlays and the rest of your file. We review your credit before quoting anything.
- Does FHA mortgage insurance ever go away?
- On most current FHA loans the annual premium remains for the life of the loan; borrowers often refinance to a conventional loan later to remove it.
- Can I buy a Florida condo with an FHA loan?
- Yes, if the project is FHA-approved or the unit qualifies under single-unit approval. Project approval status is a common obstacle in coastal markets.
Guides for fha loans
- FHA vs conventional loans compared
- Credit score minimums by loan program
- Florida first-time home buyer guide
You can also estimate a monthly payment with our mortgage calculators or read answers to common Florida mortgage questions.
Sources
Agency guidelines below govern this program at a national level. Lender overlays, Florida property requirements and your own credit profile all affect eligibility — confirm details with a licensed NexGen Capital advisor.
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