FHA vs Conventional in Florida - Which Loan Fits Your Down Payment?

The FHA-vs-conventional question is one I answer every week as an originator (NMLS #2857504). The right answer depends on your credit, your down payment cash, and how long you plan to keep the home - not on a blanket rule.

FHA: low down payment, flexible credit

FHA loans allow as little as 3.5% down with credit scores into the low 600s. The catch: you pay mortgage insurance for the life of the loan (in most cases), and the property must meet FHA's condition standards. For buyers rebuilding credit or tight on cash, FHA is a real path to ownership.

Conventional: lower lifetime cost if you qualify

Conventional loans start at 3% down for first-time buyers (5% for others), and the big advantage is that private mortgage insurance (PMI) cancels once you reach equity - unlike FHA. If your credit is 680+ and you have the down payment, conventional usually costs less over time.

When FHA actually wins

With lower credit, FHA's rate can be better than a conventional loan at the same score, even with the permanent mortgage insurance. I run both side-by-side for every client.

The Florida wrinkle: condo approvals

Many Gulf Coast condos don't have the FHA approval that FHA requires. If you're condo-shopping in St. Pete or Clearwater, that alone may steer you to conventional.

Send me your credit range and down payment cash and I'll tell you which program wins for you - with real numbers.