Is an FHA loan a government loan I get from the government?

No. The loan comes from an FHA-approved lender. The Federal Housing Administration insures it. Any company telling you it is a government agency or that it lends on the government's behalf is misdescribing the arrangement.

Does FHA mortgage insurance ever go away?

It depends on the loan-to-value at origination and the rules in effect when the loan was made. For some loans it remains for the life of the loan, in which case borrowers often look at refinancing later as the route out. Confirm which applies to your specific loan.

Can I buy a fixer-upper with an FHA loan?

A standard FHA loan requires the property to meet FHA condition standards at closing. There are FHA renovation options designed for properties that need work, and availability depends on the lender. This is a question to settle before writing an offer on a property needing repairs.

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FHA loans

An FHA loan is a mortgage insured by the Federal Housing Administration, part of HUD. The insurance is what allows lenders to accept a lower down payment and a wider range of credit profiles than conventional financing typically does.

Last updated 26 October 2026

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How it works

How FHA loans work

FHA does not lend money. It insures loans made by approved lenders, which reduces the lender's loss exposure and allows terms that would otherwise be unavailable. You apply through a lender, not through HUD.

FHA loans carry mortgage insurance in two parts: a premium collected at closing and an annual premium paid monthly. How long the annual premium stays on the loan depends on the loan-to-value at origination and the rules in effect when the loan is made, so this is a point to confirm for your specific file rather than assume.

FHA sets maximum loan amounts by county and unit count, and they are updated periodically. HUD publishes a lookup tool for the current figure.

The property has to meet FHA's condition standards, assessed through an FHA appraisal. On older housing stock and on some condominium projects this is a real constraint, and it is worth raising before you make an offer rather than after.

What to weigh up

Condominium purchases generally require the project to be FHA-approved, which not all Florida projects are.
The annual mortgage insurance premium may remain for the life of the loan depending on the loan-to-value and the rules in effect, which changes the long-run cost comparison against conventional financing.
FHA financing is for owner-occupied property; it is not a route to an investment purchase.

Set by the lender, not by us

These vary between lenders and change over time. Nothing on this page is a quote, an approval, or a commitment to lend.

Minimum credit score accepted (lenders commonly set a higher floor than FHA's own)
Maximum debt-to-income ratio and compensating factors
Appraisal repair requirements and how they must be resolved before closing
Whether the lender will finance a particular condominium project

Nothing on this page is a rate quote, an approval, or a commitment to lend. Figures and requirements change, and they depend on your file.

FHA compared with conventional

These are the two programs most Florida buyers end up choosing between. The differences that matter are mortgage insurance, how the property is assessed, and what happens to your monthly cost over time.

FHA compared with conventional
Factor	FHA	Conventional
Who stands behind it	Insured by the Federal Housing Administration, part of HUD. The loan itself comes from an FHA-approved lender.	Not government-insured. Most conventional lending follows Fannie Mae or Freddie Mac guidelines.
Mortgage insurance	A premium at closing plus an annual premium paid monthly. How long the annual premium lasts depends on the loan-to-value at origination and the rules in effect when the loan is made.	Private mortgage insurance below 20% equity, generally removable once you reach the equity position the guidelines and your servicer require.
Credit profile	Designed to accommodate a wider range of credit profiles. Lenders commonly set a higher floor than FHA itself requires.	Generally expects a more established credit profile, assessed against published guidelines.
Property condition	An FHA appraisal applies condition standards. Repairs may have to be completed before closing.	The appraisal is focused on value. Condition standards are less prescriptive.
Condominiums	The project generally has to be FHA-approved, and not all Florida projects are.	The project has to meet agency project standards, which a wider set of Florida projects satisfy.
Occupancy	Owner-occupied primary residences only.	Primary residence, second home or investment property.
Loan amount ceiling	County limits published by HUD, updated periodically.	County conforming limits published by the FHFA. Above that the loan becomes a jumbo loan with different requirements.

Who stands behind it

FHA: Insured by the Federal Housing Administration, part of HUD. The loan itself comes from an FHA-approved lender.
Conventional: Not government-insured. Most conventional lending follows Fannie Mae or Freddie Mac guidelines.

Mortgage insurance

FHA: A premium at closing plus an annual premium paid monthly. How long the annual premium lasts depends on the loan-to-value at origination and the rules in effect when the loan is made.
Conventional: Private mortgage insurance below 20% equity, generally removable once you reach the equity position the guidelines and your servicer require.

Credit profile

FHA: Designed to accommodate a wider range of credit profiles. Lenders commonly set a higher floor than FHA itself requires.
Conventional: Generally expects a more established credit profile, assessed against published guidelines.

Property condition

FHA: An FHA appraisal applies condition standards. Repairs may have to be completed before closing.
Conventional: The appraisal is focused on value. Condition standards are less prescriptive.

Condominiums

FHA: The project generally has to be FHA-approved, and not all Florida projects are.
Conventional: The project has to meet agency project standards, which a wider set of Florida projects satisfy.

Occupancy

FHA: Owner-occupied primary residences only.
Conventional: Primary residence, second home or investment property.

Loan amount ceiling

FHA: County limits published by HUD, updated periodically.
Conventional: County conforming limits published by the FHFA. Above that the loan becomes a jumbo loan with different requirements.

Which costs less depends on your credit profile, your down payment, and how long you keep the loan — a lower payment now can cost more over ten years if the mortgage insurance never comes off. The comparison worth making is total cost over the period you expect to hold the loan, run on your actual file.

Terms used on this page

FHA loan: A mortgage made by an approved lender and insured by the Federal Housing Administration, part of HUD.The loan comes from a lender, not from the government. No private company lends on the government's behalf.
Mortgage insurance: Insurance protecting the lender, not the borrower, where the down payment or equity is below a program's threshold.Conventional private mortgage insurance can generally be removed once you reach the required equity. FHA annual premiums work differently and may last the life of the loan depending on the loan-to-value at origination. They are not the same product and should not be compared as though they were.
Loan-to-value (LTV): The loan amount expressed as a percentage of the property's value. A larger down payment means a lower LTV.
Appraisal: An independent opinion of a property's value, prepared by a licensed appraiser for the lender, supported by recent sales of comparable properties.Some programs also apply property condition standards through the appraisal, which is where older housing stock can run into trouble.

See the full mortgage glossary

Questions about this program

Is an FHA loan a government loan I get from the government?: No. The loan comes from an FHA-approved lender. The Federal Housing Administration insures it. Any company telling you it is a government agency or that it lends on the government's behalf is misdescribing the arrangement.
Does FHA mortgage insurance ever go away?: It depends on the loan-to-value at origination and the rules in effect when the loan was made. For some loans it remains for the life of the loan, in which case borrowers often look at refinancing later as the route out. Confirm which applies to your specific loan.
Can I buy a fixer-upper with an FHA loan?: A standard FHA loan requires the property to meet FHA condition standards at closing. There are FHA renovation options designed for properties that need work, and availability depends on the lender. This is a question to settle before writing an offer on a property needing repairs.

Official sources

Program rules are set by these organizations and are updated periodically. Where this page and an official source disagree, the official source is correct.

U.S. Department of Housing and Urban Development (opens in a new tab) — HUD
FHA mortgage limits lookup (opens in a new tab) — HUD
Explore loan options (opens in a new tab) — Consumer Financial Protection Bureau

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