FHA Loan Payment.

An FHA loan is government-insured, which lets lenders accept lower down payments and credit scores while passing along the FHA’s insurance cost to the borrower. You put down as little as 3.5%, finance a 1.75% upfront mortgage insurance premium into the loan, and pay an annual premium monthly. The FHA insures the lender against loss, but you the borrower fund that protection.

The minimum FHA down payment is 3.5% of the purchase price for borrowers with a credit score of 580 or higher. On a $400,000 home that is $14,000 down. Buyers with scores between 500 and 579 may still qualify but generally need 10% down.

FHA mortgage insurance protects the lender if you default, and it comes in two parts. The upfront premium (UFMIP) is 1.75% of the loan, usually rolled into the balance, and the annual premium (MIP) is roughly 0.55% of the loan, charged in monthly pieces. On most FHA loans with low down payments, MIP lasts for the life of the loan unless you refinance out.

Yes — FHA loans are available throughout Florida, including Miami-Dade, subject to FHA loan limits that adjust by county and update annually. They are widely used by first-time and moderate-income buyers in the Miami area. For condos, the building generally must be on the FHA-approved list, so confirm a unit’s eligibility before making an offer.

FHA wins on accessibility: lower down payment and more lenient credit, which helps newer buyers. Conventional loans can be cheaper long term because their private mortgage insurance drops off once you reach 20% equity, whereas FHA MIP often stays for the life of the loan. If you have strong credit and can reach 20% down later, conventional may cost less overall; otherwise FHA gets you in the door sooner.