Miami Beach ยท FHA condo financing
Miami Beach FHA Home Loan
On an island of condos, an FHA loan starts with one question: is the building approved? We answer that first, then price your Miami Beach FHA loan with lenders that know how to read an association budget.
We specialize in Miami Beach FHA home financing.
FHA is not the first loan most people associate with Miami Beach, and for oceanfront penthouses it is not the right one. But the city also has thousands of modest one- and two-bedroom condos in North Beach, Normandy Isles and Mid-Beach, many in mid-century buildings, and for a buyer with a modest down payment or credit that is still recovering, FHA can be the most realistic way to own on the island.
The obstacle is rarely the borrower. It is the building: whether it is on HUD’s approved list, how its reserves and insurance look, and how many units are rented. As a broker, On Mortgage works with many FHA lenders and can tell you quickly whether a unit is financeable. Compare every program on our Miami Beach mortgage rates page or talk with our Miami Beach mortgage broker team.
Today’s Miami Beach FHA Mortgage Rate
$544 lender credit
$531 lender credit
$531 lender credit
$829 lender credit
$1,482 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 Miami Beach scenario, no credit pull.
Miami Beach FHA Loan Benefits: Affordable Homeownership Starts Here
FHA’s benefits are familiar: 3.5% down with a credit score of 580 or higher, gift funds for the whole down payment, seller help with closing costs and more room in the debt ratio than most conventional loans. On Miami Beach, that last benefit matters most, because condo dues and insurance push the monthly cost well above principal and interest.
Here is what an FHA buyer’s full monthly cost looks like on a $350,000 Miami Beach condo, and the income needed at two common debt-to-income limits:
| $350,000 condo, 3.5% down | Monthly |
|---|---|
| Principal and interest on $343,661 at 6.250% | $2,116 |
| FHA annual mortgage insurance (0.55%) | $155 |
| Property tax, homesteaded | $350 |
| HO-6 condo insurance (illustrative $1,500 a year) | $125 |
| Association dues (illustrative) | $750 |
| Total housing payment | $3,496 |
| Income needed at a 43% ratio, with $400 a month of other debts | $109,000/yr |
| Income needed at a 50% ratio, with $400 a month of other debts | $93,000/yr |
Live FHA par pricing for Miami-Dade with the 1.75% upfront premium financed. Dues and HO-6 premiums vary widely by building; older buildings with special assessments under way can run much higher. FHA can approve ratios above 43% with strong compensating factors.
In other words, the dues line can matter more than the rate. Two units at the same price in different buildings can need very different incomes, which is why we review the association budget during pre-approval rather than after you are under contract.
Miami Beach FHA Loans for First-Time Homebuyers
For a first-time buyer who works on the beach, in hospitality, healthcare or the schools, FHA turns years of rent into equity with as little as 3.5% down. Gift money from family can cover all of it, and in a market where units sit for about four months on average, sellers are often willing to pay part of the closing costs, up to 6% of the price under FHA rules.
First-time buyers should budget for two things that renters rarely see: special assessments, which Florida’s condo safety laws have made more common in older buildings, and insurance increases passed through in the dues. Neither should stop you, but both belong in the plan.
On Mortgage: Miami Beach FHA Loan Experts
Whether you are buying your first Art Deco condo in South Beach or a family-friendly apartment in North Beach, On Mortgage guides your FHA loan from pre-approval to closing. We know what disqualifies Miami Beach buildings, and it is a long list:
Hotel-style operations
Condo-hotels, rental desks and buildings that operate units as short-term lodging are generally ineligible for FHA.
High investor share
FHA expects at least half the units to be owner-occupied in most projects. Rental-heavy South Beach buildings often fall short.
Reserves and repairs
Thin reserves, pending structural work or litigation can block or delay approval.
Insurance gaps
The association must carry adequate hazard, liability and flood coverage, and on Miami Beach nearly every building is in a flood zone.
Commercial space
Ground-floor retail is common; too much of it relative to the building can be a problem.
Single-unit approval
If a building is not on the list, an individual unit can sometimes be approved on its own. We check whether that route is open.
2026 FHA Loan Limits for Miami Beach
Located in Miami-Dade County, Miami Beach uses the metro area’s higher FHA limits for 2026. The one-unit limit covers most of the condos where FHA is realistic; the multi-unit limits apply to the small number of owner-occupied duplexes and small apartment buildings on the island.
| 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 |
Base loan limits; the 1.75% upfront premium may be financed above them. Price at 3.5% down shown for reference.
Condo Options & FHA Access
FHA buyers tend to find approved buildings in North Beach, Normandy Isles, Park View Island and parts of Mid-Beach, where mid-century and newer mid-rise buildings offer entry-level price points within walking distance of schools, transit and the beach. Approval lists change as certifications expire and are renewed, so a building that was approved last year may not be today, and the reverse is also true.
Mortgage insurance is the other FHA cost to understand. On a $350,000 unit:
| $350,000 purchase | Base loan | Upfront MIP (1.75%, financed) | Monthly MIP | How long MIP lasts |
|---|---|---|---|---|
| 3.5% down | $337,750 | $5,911 | $155 (0.55% a year) | Life of the loan |
| 5% down | $332,500 | $5,819 | $139 (0.50% a year) | Life of the loan |
| 10% down | $315,000 | $5,513 | $131 (0.50% a year) | 11 years |
What a 30-year FHA loan on a unit at this price pays in MIP. Owners who reach 20% equity often refinance into a conventional loan to drop the monthly premium.
Market Snapshot
As of mid-2026, the median sale price on Miami Beach was around $630,000, with homes typically taking about 130 days to sell. FHA buyers shop the lower part of that range, where condos make up nearly all of the inventory. On Mortgage compares FHA and conventional options for each building so you pick the loan with the lower total cost.
Why Use FHA Loans in Miami Beach?
Because the right FHA lender, paired with the right building, can put island ownership within reach years sooner. We understand FHA condo approval, coastal insurance requirements and how to compete in a market where cash buyers are common.
Competing with cash
A fully underwritten FHA approval, with the building already reviewed, makes your offer stronger next to cash.
FHA or conventional?
Conventional loans have their own condo rules, and some buildings qualify for one but not the other. We check both.
Frequently Asked Questions: FHA Loans
Are there FHA-approved condos on Miami Beach?
Yes, especially in North Beach, Normandy Isles, Park View Island and Mid-Beach. Approval is building by building and expires periodically, so we confirm the current status of any building you are considering.
Why do many South Beach condos not qualify for FHA?
Common reasons are hotel-style rental operations, a high share of investor-owned units, commercial space, thin reserves or pending repairs. Some of those buildings can still be financed with conventional or portfolio loans.
Do condo dues affect how much I can borrow with FHA?
Yes. Lenders count association dues, property tax, insurance and FHA mortgage insurance in your housing payment, so high dues reduce the price you qualify for. The table above shows the effect on a $350,000 unit.
Can I buy a single-family home on Miami Beach with FHA?
Only if the loan fits under the $667,000 one-unit limit, which most island homes exceed. FHA is mainly a condo loan here; for larger purchases, see our Miami Beach jumbo rates.
Can I rent out my Miami Beach FHA condo?
FHA requires you to live in the home as your primary residence, usually moving in within 60 days of closing. Many Miami Beach buildings also restrict short-term rentals, and city rules limit them in most residential areas.
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 Miami Beach FHA loan
Send us the building and the unit you have in mind. We will check FHA eligibility, review the dues and quote your loan with several FHA lenders. Call or start online today.