Trying to choose between an FHA or conventional loan for a Miramar home? In Broward County, details like condo approvals, flood and wind insurance, and local assistance programs can tip the scales. You want a clear path that fits your credit, savings, and the type of property you love. In this guide, you’ll compare the two options, learn how Miramar factors change the math, and get a simple checklist to choose with confidence. Let’s dive in.
FHA vs. conventional: quick comparison
| Feature | FHA | Conventional |
|---|---|---|
| Credit score | Flexible minimums. Many borrowers qualify with 580+ for 3.5% down; 500–579 may be possible with 10% down, subject to lender overlays. HUD FHA program pages | Typically higher minimums. Many programs expect 620+; special programs can allow 3% down for eligible buyers. See Fannie Mae for program details. |
| Down payment | 3.5% at 580+ scores; gift funds allowed with documentation. Upfront mortgage insurance premium (UFMIP) is typically 1.75% of the loan. | As low as 3% for some first-time buyer programs; many buyers put 5%–20%. Gift fund rules vary by program. |
| Mortgage insurance | UFMIP plus annual MIP. If original LTV is over 90%, annual MIP usually lasts for the life of the loan; at 90% or less, MIP is often required for 11 years. HUD FHA program pages | Private mortgage insurance (PMI) required above 80% LTV. PMI can often be canceled at 20% equity and is automatically terminated per the Homeowners Protection Act. CFPB on PMI cancellation |
| DTI & underwriting | Often more flexible on debt-to-income with compensating factors. | Common DTI caps near 45% for automated approvals, with some flexibility based on profile. |
| Property standards | Appraisal checks value and basic property condition to meet HUD standards. Some repairs can be required before closing. | Appraisal focuses on value; no HUD minimum property standard. Repairs can still be required by lender or appraiser. |
| Condos | Condo must meet FHA requirements or appear on HUD’s approved list. Check FHA condo status | Lender and investor rules apply. Some condos that are not FHA approved may still be eligible for conventional financing. |
| Loan limits | FHA county limits change annually. Check current Broward County limits with HUD and conforming limits with FHFA. | Conforming loan limits set by FHFA. Above the limit, loans are jumbo with different requirements. |
| Seller concessions | Up to 6% of the purchase price can go toward closing costs, prepaids, and certain fees. | Limits vary by down payment and investor rules. Ask your lender for current caps. |
| Lifetime cost | Often competitive rates, but MIP can add long-term cost. | PMI can cost less for strong credit and can be removed, which may lower lifetime cost. |
What changes the decision in Miramar
Insurance costs
Miramar buyers should plan for homeowner insurance, windstorm coverage, and flood insurance where required. These premiums affect your monthly payment and your debt-to-income ratio. Ask your insurance broker for quotes early and include them in every loan comparison.
Condos and HOA rules
South Florida has many condo communities. If you are shopping for a condo, confirm eligibility before you fall in love. Use the HUD FHA condo lookup to check approval status and ask your lender about conventional financing options for the building.
Property taxes and assessments
Broward County property taxes and any special assessments can change your monthly budget. Use the Broward County Property Appraiser to estimate taxes for a specific address and to review assessment history.
Loan limits and price bands
If your price range is above conforming limits, you may need a jumbo loan. Check current conforming limits with the FHFA and confirm FHA county limits with your lender before you write offers.
Local market pace
Inventory and pricing trends affect how quickly you build equity. If prices are rising slowly, PMI removal on a conventional loan could take longer. Review the latest local stats from Greater Fort Lauderdale REALTORS and adjust your plan with your lender.
Buyer profiles to guide your choice
Profile A: building credit, limited savings
- You have a credit score around 580–620 and modest reserves.
- FHA can fit with 3.5% down at 580+, plus flexible underwriting. Confirm lender overlays.
- Consider lifetime MIP costs and your timeline for refinancing.
Profile B: strong credit, 5–10% down
- You have 700+ credit and stable income.
- Conventional often delivers a lower lifetime cost because PMI can be canceled.
- If buying a condo, check lender eligibility early.
Profile C: first-time buyer using assistance
- You qualify for city, county, or state help with down payment or closing costs.
- Your best fit depends on program pairing rules and condo eligibility.
- Start with Florida Housing, Broward County Housing, and the City of Miramar for current programs.
Profile D: above conforming limits
- Your target price exceeds conforming thresholds.
- Jumbo financing may be required, with higher credit and reserve standards.
- Compare jumbo vs. FHA high-balance options with your lender if available.
How to run the numbers the right way
Compare total monthly payments
- Principal and interest at the quoted rate
- Mortgage insurance: FHA MIP vs. conventional PMI
- Property taxes and any special assessments
- Homeowner, windstorm, and flood insurance
- HOA dues and condo assessments
Estimate time to 20% equity
- Consider your down payment and expected appreciation.
- On conventional loans, PMI may be canceled at 20% equity and ends automatically under federal rules. See CFPB guidance on PMI cancellation.
- On FHA loans, annual MIP often remains for the life of the loan if the original LTV is over 90%. Confirm current rules with HUD resources.
Check property eligibility early
- For condos, verify status with the HUD FHA condo list and ask your lender about conventional approvals.
- For single-family homes, plan for any FHA-required repairs if you go FHA.
Confirm loan limits and pricing
- Verify conforming limits on the FHFA site and ask your lender about current FHA county limits.
- Ask for written quotes for both FHA and conventional on the same day to compare apples to apples.
Questions to ask lenders in Broward County
- Do you have any credit score or DTI overlays beyond FHA or conventional program rules?
- What are today’s rates and total APR for both options at my credit score and down payment?
- How much will PMI cost, and how soon can I remove it on conventional?
- What is the total FHA MIP cost, including the 1.75% UFMIP and the annual premium?
- Are seller concessions within limits for the program I’m using?
- Will my condo or townhouse meet your investor requirements? If FHA, is the project approved?
- What are estimated insurance costs for this property type in Miramar, including wind and flood if needed?
Documents to gather before you shop
- Last 30 days of pay stubs and two years of W-2s or tax returns
- Two months of bank statements and evidence of gift funds if applicable
- Photo ID and proof of residency status
- List of debts and monthly payments
Local resources to explore
- Review statewide down payment options with Florida Housing.
- Check county-level programs at Broward County Housing.
- See city updates and potential programs through the City of Miramar.
- Estimate taxes through the Broward County Property Appraiser.
- Learn about conventional program options via Fannie Mae.
- Verify FHA basics and insurance rules with HUD resources.
The bottom line for Miramar buyers
If you need flexible credit and a low down payment, FHA can open the door. If you have stronger credit and can put at least 5% down, conventional often wins on lifetime cost because PMI can be removed. In Miramar, factor in condo eligibility, property taxes, and the real costs of wind and flood insurance before you choose. A side-by-side quote from a local lender will make the best option clear.
Ready to compare options on the homes you love in Miramar? Let our team guide you through financing choices, property eligibility, and negotiations so you can move with confidence. Reach out to Team Delgado Home Experts at tdhomeexperts.com to get started.
FAQs
What is the difference between FHA and conventional loans?
- FHA offers flexible credit and 3.5% down at 580+ scores with mortgage insurance that can last long term, while conventional often requires higher credit but allows PMI removal once you reach enough equity.
What credit score do I need in Miramar, FL?
- Many FHA borrowers qualify with 580+ for 3.5% down, and conventional programs often look for 620+; lenders can set higher overlays, so get current requirements from at least two lenders.
How does mortgage insurance work on each loan type?
- FHA includes a 1.75% upfront premium plus annual MIP that can last for the life of the loan, while conventional PMI is required above 80% LTV and can often be canceled per the Homeowners Protection Act.
Can I buy a Miramar condo with FHA financing?
- Yes if the condo project meets FHA rules or appears on HUD’s approved list; verify status using the HUD condo lookup and ask your lender about conventional alternatives.
How do insurance and taxes affect approval in Broward County?
- Lenders include estimated homeowner, wind, and flood insurance plus property taxes in your debt-to-income ratio, so higher premiums can change how much home you can qualify for.
Are there local down payment assistance programs I can use?
- Explore options through Florida Housing, Broward County Housing, and the City of Miramar; confirm whether your chosen program pairs with FHA or conventional before you apply.
Where do I check current loan limits for Broward County?
- Review conforming limits on the FHFA site and ask your lender to confirm FHA county limits for the price range and property type you are targeting.
