Florida · FHA rates
See dated FHA rate and APR options, then learn why FHA can make more sense than conventional for a buyer with a 680 credit score. Compare the payment, cash needed, and mortgage-insurance tradeoffs for your own home.
A lower note rate does not settle the comparison.
No application or credit pull is needed to use this guide. Displayed FHA options are planning estimates, not quotes or rate locks. The comparison shows a September 30, 2026 lender example, clearly separated from current FHA pricing.
Current FHA pricing
These are the distinct FHA choices available for the stated planning scenario. The interest rate helps determine principal and interest; APR is a broader borrowing-cost comparison and is not the monthly-payment formula.
Source timestamp: . Rates and costs may change before a rate lock.
Lower rate · Up to 1 point · PennyMac
0.729 points · $2,863 upfront
Zero discount points · PennyMac
0 discount points + $39 lender credit
Pricing checked 10/09/2026. Rates are examples and may not be available at the time of loan commitment.
As of , this illustrative Florida planning example for a $400,000 purchase with 3.5% down ($14,000), a $386,000 base loan, 680–699 credit, primary-residence occupancy, a single-family property, a 30-year fixed term, and a 30-day lock shows two featured FHA choices. The lower-rate option (up to 1 point) is a 6.875% note rate and 7.742% APR, with 0.729 discount points ($2,863 upfront rate cost) and about $2,580 per month in principal and interest and about $27,154 estimated money needed at closing. The zero-discount-point option is a 7.250% note rate and 8.045% APR, with 0 discount points + $39 lender credit and about $2,679 per month in principal and interest and about $24,292 estimated money needed at closing. The upfront FHA mortgage-insurance premium is financed into the loan, so the rate, payment and APR are calculated on the total financed loan rather than the base loan. Monthly FHA mortgage insurance is assumed to continue for the life of the loan, which is the standard treatment at this loan-to-value; it is not assumed to cancel.
Lower rate · Up to 1 point: 30-year fixed · Approximately 360 monthly principal-and-interest payments of $2,580. Zero discount points: 30-year fixed · Approximately 360 monthly principal-and-interest payments of $2,679. This P&I amount excludes property taxes, homeowners insurance, FHA monthly mortgage insurance, HOA/CDD dues, flood insurance and other property-specific costs; your actual total monthly payment will be higher.
Illustrative Florida estimates. Rates and pricing may change and may not be available at commitment or closing. Not a loan approval, commitment to lend, Loan Estimate or rate lock.
Representative FHA 30-year fixed purchase example for a primary-residence single-family home: $400,000 purchase price, $386,000 base loan amount, 3.5% down, and 680–699 credit score, priced for a 30-day lock. The rate, APR, points, and lender credit shown above reflect those details only. Change any assumption — credit, down payment, property type, occupancy, lock period, or program — and the numbers move.
How the points percentage is calculated
Points and lender-credit percentages are calculated on the total financed loan amount (the note amount) — not the base loan — so the percentage ties to the dollar figure shown. This example assumes the upfront MIP is financed into the loan; if it is paid in cash, the percentage is calculated on that loan’s actual note amount instead.
The upfront FHA mortgage-insurance premium is financed into the loan, so the rate, payment and APR are calculated on the total financed loan rather than the base loan. Monthly FHA mortgage insurance is assumed to continue for the life of the loan, which is the standard treatment at this loan-to-value; it is not assumed to cancel.
Representative fee treatment: APR and cash include the current $1,199 lender administration charge plus a conservative $104 allowance for the source-listed flood, MERS, and tax-service items. Cash-to-close planning also uses dated estimates of $1,525 for title/settlement services and $350 for borrower title. A $500 settlement component of that $1,525 is included once in APR and is not added again to cash. The cash estimate assumes $5,000 in annual property taxes, $2,400 in annual homeowners insurance, three months of each for initial escrow, one year of homeowners insurance paid at closing, and 10 days of prepaid interest calculated on the financed FHA note. Actual third-party charges, tax and insurance amounts, timing, and applicability can differ.
For broader program choices, use the Florida rates page. For term-focused economics, see the Florida 30-year fixed rate guide.
FHA mortgage insurance
Current HUD guidance sets the FHA upfront mortgage-insurance premium at 1.75% of the base loan for this program. When it is financed, it is added to the base loan and principal and interest are calculated on that larger financed note. The annual FHA MIP is a separate ongoing charge generally collected monthly.
For a 3.5%-down, 30-year FHA structure, the original loan-to-value ratio is 96.5%. Under HUD's current Handbook 4000.1, Appendix 1.0 (opens in a new tab), a base loan at or below $726,200 with an LTV above 95% carries annual MIP of 55 basis points (0.55%) for the mortgage term. “Annual” is the rate used to calculate the periodic premium, which is generally collected monthly. HUD's periodic-premium method recalculates the amount for each amortization year from that year's average scheduled balance, so the amount can decline as the loan amortizes. See HUD's current monthly premium calculation method (opens in a new tab).
Required mortgage insurance is a finance charge under CFPB Regulation Z (opens in a new tab), so it is among the borrowing-cost inputs reflected in APR and adds to longer-term cost for as long as it applies. APR remains a comparison measure, not the formula for monthly payment. FHA MIP is not conventional PMI; the two follow different rules for price, duration, and possible cancellation.
Even when FHA starts with a lower note rate, financed upfront MIP and mortgage insurance that lasts for the loan term can outweigh that rate advantage over time.
Use the detailed Florida FHA loan guide for qualification rules and program requirements. Here, focus on pricing, payment, mortgage insurance, and the cost of keeping the loan.
Same home · same buyer profile
See how FHA and conventional compare for a $400,000 home purchase with a 680 credit score. In this reviewed September 30, 2026 example, FHA required less money upfront and produced a lower monthly payment—even after financing the upfront mortgage-insurance premium. Your credit, down payment, eligibility, and current pricing determine which option works better for you.
Historical example · September 30, 2026 · Not today's rates
Same $400,000 home. Same buyer: 680 credit score and a 49% debt-to-income ratio. Both loans are 30-year fixed. FHA's upfront mortgage insurance is financed.
$180 less per monthInitial payment difference in this example
$6,601 less at closingIncludes the smaller down payment
| What you compare | FHA | Conventional |
|---|---|---|
| Down payment | $14,000 (3.5%) | $20,000 (5%) |
| Interest rate | 7.250% | 8.000% |
| APR | 8.055% | 8.704% |
| Monthly principal & interest | $2,679.28 | $2,788.31 |
| Monthly mortgage insurance | $176.14 MIP | $247.00 PMI |
| Monthly taxes & homeowners insurance | $473.33 | $473.33 |
| Initial total monthly payment | $3,328.75 | $3,508.64 |
| Cash to close, including down payment | $30,251.98 | $36,852.60 |
The down payment was $6,000 smaller, and monthly mortgage insurance was $70.86 lower. Together with this example's loan pricing, that produced a $179.89 lower initial monthly payment and $6,600.62 less cash to close. The down-payment difference is already included in the cash difference.
FHA: $386,000 base loan plus $6,755 financed upfront MIP, for a $392,755 loan. Conventional: $380,000 loan. Each has 360 monthly principal-and-interest payments at the amount shown; the final payment may vary slightly with rounding.
The FHA option had $74.62 lender credit (0.019%); the conventional option had $421.80 in points (0.111%). These were the supplied options closest to $0 in points or credit. Their upfront pricing differs. A lender credit is not cash back.
Total payment includes principal, interest, mortgage insurance, and the lender's taxes/homeowners-insurance estimate. HOA dues and any additional flood insurance are not included. Taxes, insurance and mortgage-insurance charges can change; the initial total is not fixed for 30 years. Cash to close includes down payment and the lender's estimated charges and credits; financed FHA upfront MIP is not added again as cash due.
Source: PennyMac Power+ scenarios supplied and reviewed by Shahram Sondi on September 30, 2026. Rate, APR, payment and cash figures are retained from those lender scenarios, not recalculated from today's sheets. Figures are estimates, not a Loan Estimate, approval, commitment to lend or rate lock. Rates may change or be unavailable at commitment or closing. Not all borrowers qualify. This dated example does not predict which program wins for your situation. Headline differences are rounded to whole dollars.
Choose your next step
No Loan Estimate yet? Price FHA and conventional choices for your scenario. Already have one? Request a line-by-line review of its rate, APR, points or credits, payment, mortgage insurance, and cash to close.
See the Florida conventional loan guide for conventional program detail. A planning comparison does not establish qualification or approval.
Points, credits, and reserves
Discount points increase upfront cost to buy a lower rate. A lender credit reduces eligible closing costs in exchange for a higher rate. Neither option is automatically better; compare the monthly difference with your expected time in the loan and the reserves you need after closing.
They may fit when the break-even is supported, eligible seller-paid costs make the structure practical, or qualification requires the lower payment. Avoid draining reserves for an unsupported future-refinance assumption.
Current HUD guidance generally permits up to 6% of the sales price toward actual eligible costs. It is not automatic, cannot exceed eligible costs, and cannot replace the borrower’s required minimum investment.
Separate lender charges, third-party fees, prepaids, points, and credits in the closing-cost guide, then use the Rate Horizon tool to test how long a pricing tradeoff takes to earn back.
Florida payment
A workable Florida estimate includes principal and interest, property taxes, homeowners insurance, FHA MIP or conventional PMI, and any property-specific costs. Insurance and taxes can materially change the qualifying payment even when the rate does not move.
Use the mortgage payment calculator with property-specific figures as early as possible.
FHA pricing questions
Neither program automatically wins. In the September 30, 2026 example for a $400,000 home, 680 credit score and 49% debt-to-income ratio, FHA had a $3,328.75 initial monthly payment and $30,251.98 cash to close; conventional had $3,508.64 and $36,852.60. FHA therefore required $179.89 less per month initially and $6,600.62 less at closing, with upfront MIP financed. The full rate, APR, down-payment and repayment assumptions are shown in the dated comparison. These are historical lender estimates, not current offered terms or a promise that FHA will be cheaper for your situation. Conventional can become more competitive with stronger credit or different program eligibility, and PMI cancellation can change longer-term costs. Compare both for your own home and expected time in the loan.
The interest rate is used with the financed note amount and loan term to calculate principal and interest. APR is a broader annualized borrowing-cost measure that includes the interest rate and certain finance charges. APR is useful for comparing costs, but it is not the formula for the monthly payment.
When the 1.75% upfront mortgage-insurance premium is financed, it is added to the FHA base loan. Principal and interest must be calculated on that larger financed note amount, while the ongoing annual MIP is collected through monthly payments.
No. FHA mortgage-insurance premium follows HUD rules and includes an upfront premium plus an annual premium generally paid monthly. Conventional private mortgage insurance follows conventional and insurer rules. The amount, duration, and cancellation behavior can differ, so compare the actual terms offered for the same buyer.
No. First-time-buyer status does not itself make FHA cheaper or easier. FHA can compare well for some lower-credit, higher-debt, or limited-down-payment situations, but the decision should compare FHA and conventional pricing, mortgage insurance, payment, cash to close, and qualification for the same buyer.
Points trade more cash now for a lower rate and payment; a lender credit trades a higher rate for help with eligible closing costs. Compare the break-even with the time you reasonably expect to keep the loan, and avoid draining needed reserves for a benefit you may not keep long enough to recover.
Seller contributions are negotiated, not automatic. Current HUD guidance generally allows interested-party contributions up to 6% of the sales price toward actual eligible costs. They cannot replace the borrower's required minimum investment, and any contribution remains limited by the transaction's eligible costs and lender review.
Possibly, but a future refinance is not guaranteed. It depends on future eligibility, property value, loan balance, credit, income, rates, closing costs, and the economics at that time. A current FHA-versus-conventional decision should not assume a future refinance or appreciation.
Guidance checked against the current HUD FHA Single Family Housing Handbook (opens in a new tab), and CFPB guidance on interest rate versus APR (opens in a new tab), monthly payment (opens in a new tab), the Loan Estimate five-year comparison (opens in a new tab), and Regulation Z mortgage advertising (opens in a new tab) and mortgage-insurance finance charges (opens in a new tab).
Educational planning only. Displayed FHA Rate, APR, payment, estimated cash to close, and points or lender credit are scenario-specific estimates—not an active quote, Loan Estimate, approval, commitment to lend, or rate lock. The FHA-versus-conventional chart describes a reviewed example, not current offered terms or a guaranteed saving. Final terms depend on verified borrower, property, loan, market, lock, lender, mortgage-insurance, and third-party information. Not all borrowers will qualify. Mortgage Expert, Inc. · NMLS 2412313 · Equal Housing Opportunity.
