FHA Loans in Orlando, FL — Low Down Payment Home Financing

First-time and repeat buyers in Orlando are using FHA financing to get into homes with as little as 3.5% down. FHA loans offer flexible credit guidelines and competitive rates through wholesale lenders that most borrowers never see.

What Is an FHA Loan?

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. It allows lower down payments and more flexible credit requirements than conventional loans. FHA loans are available for primary residences — not investment properties.

FHA Loan Requirements

• Minimum 3.5% down payment with a 580+ credit score.
• Down to 500 credit score with 10% down.
• Debt-to-income ratios up to 50% with compensating factors.
• Primary residence only — owner-occupied.
• Mortgage insurance required (upfront + monthly MIP).

FHA vs. Conventional

FHA loans have lower credit score thresholds and smaller down payments, but require mortgage insurance for the life of the loan (unless you refinance out). Conventional loans drop PMI at 80% LTV. The right choice depends on your credit profile and how long you plan to keep the loan.