Florida First-Time Buyer Loans: FHA vs. Conventional Compared

As a Florida first-time buyer, one of your biggest decisions is how to finance your home.

Let’s compare FHA and Conventional loans so you can choose what’s right for you.

1. Minimum Credit Score

• FHA: As low as 580 (with 3.5% down)
• Conventional: Usually 620+ (higher for better terms)

2. Down Payment

• FHA: 3.5% minimum
• Conventional: 3% for first-time buyers (but often 5%+)

Lower down payment doesn’t always mean better long-term cost.

3. Mortgage Insurance (PMI/MIP)

• FHA: Mortgage Insurance Premium (MIP) required for life of the loan (unless you refinance)
• Conventional: PMI can be removed once you hit 20% equity

4. Debt-to-Income Ratio (DTI)

• FHA: Allows higher DTI (up to ~57%)
• Conventional: Stricter DTI limits (usually 43-50%)

If your monthly debt is high, FHA may be more flexible.

5. Property Types and Conditions

• FHA: More strict on condition (no peeling paint, must be move-in ready)
• Conventional: More flexible on condition and condo types

6. Appraisal and Fees

• FHA: Mandatory FHA appraisal; Upfront MIP fee (1.75%) rolled into loan
• Conventional: Standard appraisal; no upfront mortgage insurance fee

7. Loan Limits (2025 est. Florida)

• FHA: Around $498,257 (varies by county)
• Conventional: Up to $766,550 (conforming)

So, Which One Is Right for You?

Go FHA if you:

• Have lower credit or limited down payment
• Need more flexible approval
• Are buying a primary residence only

Go Conventional if you:

• Have strong credit and steady income
• Want to remove PMI later
• May buy more than one property in the future

Final Thought

There’s no one-size-fits-all answer—just the loan that fits you best.

📞 Call Michael Renick at 941.400.8735 to compare FHA and Conventional loans side-by-side and make your Florida first home purchase a success.

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