Homestead · South Dade FHA
Homestead FHA Home Loan
FHA financing for Homestead’s new subdivisions, established neighborhoods and the acreage homes out toward the Redland. 3.5% down at 580, priced across many lenders, with builder incentives put to work properly.
We specialize in Homestead FHA home financing.
Homestead has been one of Miami-Dade’s fastest-growing places for new homes, with large subdivisions filling in east of US-1 and along the Turnpike’s southern end. Prices still sit below most of the county, which makes FHA a natural fit for first-time buyers, young families and anyone moving south in search of a yard.
On Mortgage works with a broad group of FHA lenders, so we can compare their pricing against a builder’s preferred lender and make sure an incentive is really saving you money. See every program on our Homestead mortgage rates page, or talk with our Homestead mortgage broker team.
Today’s Homestead FHA Mortgage Rate
$374 lender credit
0.125 points
No points, no credit
$672 lender credit
$1,577 lender credit
Par rate per program for a single-family primary residence in Miami-Dade County, 20% down, 780+ credit, 30-day lock, escrows included. Rates change through the day and are not a commitment to lend. Price your own Homestead scenario, no credit pull.
Homestead FHA Loan Benefits: Affordable Homeownership Starts Here
FHA’s benefits line up well with how Homestead homes are sold. The 3.5% down payment keeps the cash needed low, gift funds can supply it, and FHA lets a builder or seller contribute up to 6% of the price toward your closing costs, prepaid escrow and rate buydowns. On a $455,000 new Homestead home, here is roughly how a full 6% credit could be put to work:
| $455,000 purchase, 3.5% down | Amount |
|---|---|
| Maximum seller or builder credit under FHA (6%) | $27,300 |
| First-year homeowners insurance plus escrow cushion | $4,512 |
| Property tax escrow deposit (about 3 months) | $1,365 |
| Florida doc stamps and intangible tax on the loan | $2,457 |
| Lender, title and settlement charges (illustrative) | $4,500 |
| Left for a rate buydown or other allowable costs | $14,466 |
Insurance and tax from Miami-Dade averages scaled to the price; actual escrow deposits depend on the closing date and the policy. The credit cannot exceed your actual costs or be paid to you in cash, and it cannot be used for the 3.5% down payment.
The leftover is where builder offers differ. Some apply it to a temporary buydown, some to a permanent one, and some quietly offset it with a higher base rate. We put the builder lender’s loan estimate next to ours so you can see which is really cheaper.
Homestead FHA Loans for First-Time Homebuyers
Homestead draws first-time buyers who want a newer single-family home or townhome and are willing to trade a longer commute for more space. FHA makes the entry point easier: 3.5% down at a 580 score, a two-year look-back on credit rather than a lifetime one, and qualifying rules that leave room for the insurance and HOA costs of a new community.
If you are buying in a community still under construction, ask early whether the home is being built under FHA inspections or comes with a 10-year warranty. Without one or the other, a home less than a year old is limited to 90% financing, which would change your down payment.
On Mortgage: Your Homestead FHA Loan Expert
We simplify FHA loans for first-time buyers and growing families in Homestead, from suburban subdivisions to homes on agricultural acreage. That second group needs particular care. Out in the Redland and along Krome Avenue, many homes sit on an acre or more, on private wells and septic systems. FHA can finance them as long as the property is primarily a residence:
Well water
FHA lenders usually require a water test showing the well meets safe drinking water standards, plus adequate distance from the septic system.
Septic
The appraiser looks for signs of failure; a septic inspection may be required if there are concerns.
Acreage and farming
The land can be large, but a working farm or nursery income-producing operation does not qualify for FHA.
What mortgage insurance adds on the same $455,000 purchase:
| $455,000 purchase | Base loan | Upfront MIP (1.75%, financed) | Monthly MIP | How long MIP lasts |
|---|---|---|---|---|
| 3.5% down | $439,075 | $7,684 | $201 (0.55% a year) | Life of the loan |
| 5% down | $432,250 | $7,564 | $180 (0.50% a year) | Life of the loan |
| 10% down | $409,500 | $7,166 | $171 (0.50% a year) | 11 years |
FHA’s 2026 premiums for a 30-year loan below $726,200. On many new homes, the upfront premium can also be paid from the builder’s credit instead of financed.
2026 Homestead FHA Loan Limits
Located in Miami-Dade County, Homestead shares the metro area’s FHA limits. For 2026 they are:
| Miami-Dade County, 2026 | FHA loan limit | Highest price at 3.5% down |
|---|---|---|
| Single-family, condo or townhome | $667,000 | $691,100 |
| Two-unit | $853,900 | $884,800 |
| Three-unit | $1,032,150 | $1,069,500 |
| Four-unit | $1,282,700 | $1,329,200 |
County base loan limits by property size. The highest-price column assumes the 3.5% minimum down payment.
FHA Financing in Homestead
FHA loans give 3.5%-down access to Homestead’s whole range of housing: garden-style condos near Downtown Homestead, townhomes and single-family homes in newer communities such as Keys Gate and Waterstone, older neighborhoods closer to Krome Avenue, and acreage in the Redland. Condos need FHA project approval; the rest are reviewed home by home.
Homestead sits low and close to Biscayne Bay, so check the flood zone on any address. Lenders require flood insurance in high-risk zones, and newer homes built to current elevation standards typically get better quotes.
Market Snapshot
Homestead’s middle price reached about $485,000 by mid-2026, and the average home needed roughly 81 days to find a buyer. With resale sellers competing against builders, FHA buyers can often secure closing-cost help. On Mortgage compares FHA and conventional options for each Homestead buyer so the loan fits the house and the plan.
Why Choose On Mortgage for Your Homestead FHA Loan
Local market insight and efficient FHA approvals help Homestead families reach homeownership on their terms.
Builder offers decoded
Incentives compared in dollars against our own FHA quote.
Rural properties handled
Wells, septic and acreage planned for from the start.
Full credit, used well
Seller and builder money directed to the costs that help you most.
Frequently Asked Questions: FHA Loans
How much can a Homestead builder contribute on an FHA loan?
Up to 6% of the sales price toward closing costs, prepaid items, discount points and the upfront mortgage insurance premium. The credit cannot cover your down payment or exceed your actual costs.
Can I use FHA on a home in the Redland with a well and septic?
Yes, if the home is primarily a residence. Expect a water test for the well and possibly a septic inspection. A property operated as a commercial farm or nursery does not qualify.
Is a new home in Homestead eligible for 3.5% down?
Yes, when it was built under FHA inspections or carries an approved 10-year warranty. Homes under a year old without either are limited to 90% financing.
What are the 2026 FHA limits in Homestead?
$667,000 for one unit, $853,900 for two, $1,032,150 for three and $1,282,700 for four units in Miami-Dade County.
Should I use the builder’s lender for my FHA loan?
Compare first. Get a loan estimate from the builder’s lender and one from us for the same loan, then compare the rate, fees and the value of the incentive. Sometimes the builder’s package wins; often it does not.
Our Reviews
What Florida borrowers say after closing with On Mortgage. Five stars on Google (130 reviews) and Zillow (92 reviews).
“Caroline Da Silva from Miami Mortgage Brokers just got us approved for our first mortgage, and we would definitely work with her again after this experience! From the moment our broker connected us with Caroline, she was always several steps ahead throughout the process. We were impressed that Miami Mortgage Brokers had us clear to close a week early,...”
“Chris was outstanding throughout the entire transaction! Always accessible and was able to provide the best financing option when others could not! I would highly recommend him and hope to do more transactions with him.”
“I recently had the pleasure of working with Chris as my loan officer, and I cannot speak highly enough of his exceptional service. He guided me through every step with clarity and patience. What truly sets Chris apart is his remarkable efficiency: not only was he incredibly responsive to my inquiries, but he also expedited the loan process, resulting in the...”
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Price a Homestead FHA loan
New construction, resale or a home on acreage, On Mortgage will compare FHA lenders and builder offers and show you the full cost. Call or start online today.