FHA loans are one of the most popular mortgage programs for Miami home buyers — and for good reason. With a minimum 3.5% down payment and credit scores as low as 580, FHA financing opens doors for first-time buyers, buyers with limited savings, and those rebuilding credit. Here is everything you need to know about FHA loans in Miami-Dade County for 2026.
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). Because FHA insures the loan against default, lenders can offer more flexible qualifying standards than conventional programs. You apply through an FHA-approved lender — not through the government directly.
FHA Loan Requirements in Florida 2026
🏦 Down Payment
3.5% minimum with 580+ credit score. 10% required for scores 500–579.
📊 Credit Score
580 minimum for 3.5% down. 500–579 may qualify with 10% down, subject to lender approval.
💰 Loan Limits
$621,000 for single-family in Miami-Dade (2026). Higher for 2–4 unit properties.
📉 DTI Ratio
Up to 57% back-end DTI allowed with compensating factors. Standard maximum is 43%.
FHA Mortgage Insurance Premium (MIP)
FHA mortgage insurance is the trade-off for the low down payment and flexible credit requirements. There are two components:
- Upfront MIP: 1.75% of the loan amount, paid at closing or financed into the loan balance.
- Annual MIP: 0.55%–0.85% of the loan amount per year, divided into monthly installments and added to your payment.
Unlike conventional PMI, FHA MIP on 30-year loans with less than 10% down is required for the life of the loan. If you put 10% or more down, MIP cancels after 11 years. This lifetime MIP requirement is the primary reason many buyers refinance into a conventional loan once they have 20% equity.
FHA Loan Limits for Miami-Dade County 2026
| Property Type | 2026 FHA Loan Limit |
|---|---|
| Single-Family (1 unit) | $621,000 |
| Duplex (2 units) | $795,000 |
| Triplex (3 units) | $960,950 |
| Fourplex (4 units) | $1,194,100 |
Miami-Dade is a high-cost county, so FHA limits are significantly above national baseline limits. Buyers looking at properties above these amounts should explore jumbo loan options or conventional financing instead.
FHA Condo Approval Requirements in Miami
Buying a condo with an FHA loan in Miami adds an extra layer of complexity. The entire condo project — not just the unit — must meet HUD approval standards. This means:
- The project must be on HUD's approved condo database (searchable at HUD.gov)
- At least 50% of units must be owner-occupied
- No more than 10% of units can be owned by a single entity
- HOA delinquency rate must be under 15%
- The project must have adequate reserves and insurance
Many high-rise condo buildings in Brickell, Edgewater, and Downtown Miami are not FHA-approved. If you fall in love with a unit in a non-approved building, ask your lender about a Non-QM condo loan as an alternative.
FHA vs. Conventional: Which Is Better for Miami Buyers?
| Feature | FHA | Conventional |
|---|---|---|
| Min. Down Payment | 3.5% | 3%–5% |
| Min. Credit Score | 580 | 620–640 |
| Mortgage Insurance | Lifetime (if <10% down) | Cancellable at 20% equity |
| Upfront MIP/Fee | 1.75% | None |
| DTI Flexibility | Up to 57% | Up to 45–50% |
| Condo Restrictions | HUD approval required | More flexible |
Ready to Get Pre-Qualified for an FHA Loan?
Lifetime Capital Funding is an FHA-approved lender serving all of Miami-Dade County. All loans subject to approval. NMLS #2583712.
Start My FHA ApplicationOr call us directly: 📞 (305) 669-2696
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Frequently Asked Questions
Lifetime Capital Funding LLC. NMLS #2583712. All loan programs are subject to credit approval, income verification, and property qualification. Rates and terms vary and are not guaranteed. Not a commitment to lend. FHA loan limits are subject to change annually by HUD.