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Loan Programs

FHA Loans

The go-to loan for first-time homebuyers — low down payment, flexible credit requirements, and government-backed security.

3.5%
Min Down Payment
580+
Min Credit Score
57%
Max DTI Ratio
$498,257
Pensacola Limit

Why FHA

Key Benefits

Only 3.5% Down

FHA loans require just 3.5% down for borrowers with a 580+ credit score — one of the lowest down payment requirements available for a home purchase.

Flexible Credit Standards

FHA accepts credit scores as low as 500 (with 10% down) or 580 (with 3.5% down), making homeownership accessible to more buyers.

Gift Funds Allowed

Your entire down payment can come from gift funds from family members — a huge advantage for first-time buyers without large savings.

Higher DTI Tolerance

FHA allows debt-to-income ratios up to 57% in some cases, making it easier to qualify even with existing debts like student loans or car payments.

Government-Backed Security

FHA loans are insured by the Federal Housing Administration, which means lenders can offer more favorable terms to borrowers who might not qualify conventionally.

Streamline Refinance

Existing FHA borrowers can refinance with minimal documentation and no appraisal required through the FHA Streamline Refinance program.

Qualification

FHA Requirements

Minimum 580 credit score for 3.5% down
Minimum 500 credit score for 10% down
Debt-to-income ratio up to 57% (case-by-case)
Property must be primary residence
FHA-approved appraisal required
Upfront MIP of 1.75% + annual MIP
Steady employment history (2 years preferred)
Loan within FHA county limits ($498,257 most areas)

Common Questions

FHA Loan FAQ

How long do I pay FHA mortgage insurance?

For loans with less than 10% down, MIP lasts the life of the loan. With 10%+ down, MIP cancels after 11 years. Many borrowers refinance to conventional once they reach 20% equity to eliminate MIP.

Can I use an FHA loan for a duplex or triplex?

Yes — FHA loans can be used for 1–4 unit properties as long as you occupy one unit as your primary residence. This is a popular strategy for house-hacking.

What is the FHA loan limit in Pensacola?

For 2024, the FHA loan limit in Escambia and Santa Rosa counties is $498,257 for a single-family home. Higher limits apply for 2–4 unit properties.

Ready to Buy Your First Home?

We'll guide you through every step of the FHA loan process. Serving Pensacola, Gulf Breeze, Navarre & the surrounding area. NMLS #103035.

Coastal Funding

Corporation

NMLS: 103035Licensed in FL, SC, TNEqual Housing Lender

Contact Us

(850) 725-6500
534 S Navy Blvd
Pensacola, FL

Mon–Fri: 9:00 AM – 5:00 PM

Sat–Sun: Closed

Ready to Get Started?

Our team is ready to help you find the perfect mortgage solution for your Pensacola home.

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