FHA loans for Southwest Florida buyers with 3.5% down
FHA loans are backed by the federal government, which lets lenders accept smaller down payments and lower credit scores. They are one of the most common ways first-time buyers in Cape Coral, Fort Myers and Lehigh Acres get into a home.
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration that lets you buy a primary home with as little as 3.5% down and a credit score of 580 or higher. Scores from 500 to 579 can still qualify with 10% down. In exchange for the easier terms, FHA charges mortgage insurance, and the home must be your primary residence and meet FHA property standards.
Talk it through with a licensed loan officer. No credit pull to ask questions. NMLS # 226100.
- Down payment
- 3.5% with a 580+ score; 10% with a 500 to 579 score (HUD guidelines; lenders may set higher minimums)
- Mortgage insurance
- 1.75% upfront, usually financed into the loan, plus an annual premium paid monthly
- Gift funds
- The full down payment can be a gift from family or another approved source
- Seller help
- Sellers can pay up to 6% of the price toward your closing costs
- Property
- Primary residence, 1 to 4 units; condos must be FHA-approved or pass a single-unit review
- Loan limits
- Set by county each year; we confirm the current Lee or Collier County limit
What you need to qualify for FHA
FHA looks at the whole picture. A lower score or past credit problem does not rule you out.
- Two years of steady income. W-2s, pay stubs and tax returns, or two years of self-employment returns.
- A credit score of 500 or higher. 580 or higher for the 3.5% down option. We can review your report and point out quick wins.
- Down payment and closing funds. Savings, a documented gift, or eligible down payment assistance.
- Time since major credit events. Generally 2 years after a Chapter 7 bankruptcy and 3 years after a foreclosure.
FHA in Southwest Florida has a few local wrinkles
We see these on Cape Coral and Fort Myers files every month, and we plan for them before you make an offer.
Condo approvals
Many Southwest Florida condo buildings are not FHA-approved, and Florida's newer condo safety and reserve rules add review. We check the building before you fall in love with a unit.
Insurance and flood
Homeowners and flood insurance are part of your FHA payment. We get real quotes early so your debt-to-income ratio holds up.
Roof and property condition
FHA appraisals flag roof age, storm damage and safety issues. Knowing the roof year upfront avoids surprise repairs before closing.
From first call to closing, step by step
Check your options
A quick call about your credit, income and savings to confirm FHA is your best fit.
Get pre-approved
Apply securely online and get a pre-approval letter that sellers and agents take seriously.
Shop with confidence
We review condo approvals, insurance and property condition on the homes you like.
Close and move in
We coordinate the FHA appraisal, title and insurance through closing day.
FHA loan questions, answered
Straight answers. If yours isn't here, call or send it through the form below.
What credit score do I need for an FHA loan?
HUD allows a 580 score with 3.5% down and a 500 to 579 score with 10% down. Some lenders set higher minimums, which is one reason working with a broker who can compare lenders helps.
How much is FHA mortgage insurance?
FHA charges an upfront premium of 1.75% of the loan amount, which is usually financed into the loan, plus an annual premium paid monthly. For most 30-year loans with less than 5% down, the annual premium is 0.55% of the loan balance.
Can I remove FHA mortgage insurance later?
If you put 10% or more down, the annual premium ends after 11 years. With less than 10% down it lasts for the life of the loan, so many borrowers refinance into a conventional loan once they have 20% equity.
Is FHA only for first-time buyers?
No. Anyone buying a primary residence can use FHA, including repeat buyers. You generally can only have one FHA loan at a time.
Can I buy a condo in Cape Coral or Fort Myers with FHA?
Yes, if the condo project is FHA-approved or the unit qualifies for a single-unit approval. Many Southwest Florida condos are not approved, so we check the building before you make an offer.
Can I combine FHA with down payment assistance?
Often, yes. Florida Housing Finance Corporation and some local programs pair with FHA first mortgages, but funding and eligibility change often. Ask us to check what is open when you are ready to buy.
See if you qualify for FHA in one call
Share your credit range, income and savings. We will tell you what you can afford and whether FHA or conventional costs less.
- Phone
- (239) 634-6685
- Serving
- Cape Coral, Fort Myers and Southwest Florida
- NMLS
- Company 2371310 · Loan Officer 226100
