(239) 571-6943 Mike.Steele@edgehomefinance.com
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FHA LOANS · 3.5% DOWN

FHA Loans in Cape Coral & Southwest Florida

Low 3.5% down payment, flexible credit requirements, and competitive rates. FHA is one of the most popular ways first-time and repeat buyers get into a home across Cape Coral, Fort Myers, Lehigh Acres, Naples and the rest of SW Florida.

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Why Buyers Choose FHA

A flexible, low-down-payment path to homeownership

3.5% Down Payment

Buy with far less cash up front than most conventional options — gift funds are allowed for the down payment.

Flexible Credit

FHA is friendlier to credit scores in the 580–640 range, and Mike shops 100+ lenders to find the most forgiving guidelines.

Competitive Rates

Because it's government-insured, FHA often carries very competitive interest rates, even for buyers still building credit.

Non-Occupant Co-Borrowers

A parent or family member can co-sign to help you qualify, which is useful for younger SW Florida buyers.

2026 FHA Loan Limits

Southwest Florida by county

$541,287
Lee County FHA limit (1-unit)
$764,750
Collier County FHA limit (1-unit)
3.5%
Minimum down payment
580
Typical minimum credit score

Lee County — including Cape Coral, Fort Myers, and Lehigh Acres — uses Florida's standard FHA floor of $541,287 for a single-family home in 2026. Collier County (Naples and Marco Island) qualifies for a higher FHA limit of $764,750 because of its higher median home values. Two-to-four-unit properties have higher limits in both counties, which can be useful if you plan to house-hack a duplex and live in one side.

If your target price is above the FHA limit for your county, you're not stuck — Mike can compare an FHA loan against a conventional loan or, for higher price points, a jumbo loan.

What You'll Need

FHA documents & steps

Getting pre-approved for an FHA loan in SW Florida is usually a 24–48 hour process once your documents are in. Here's what Mike will typically ask for:

  • Last 2 pay stubs (30 days of income)
  • W-2s and/or tax returns for the last 2 years
  • 2 months of bank statements (to source your down payment and reserves)
  • Photo ID and Social Security number for the credit pull
  • If self-employed: 2 years of returns and a year-to-date profit & loss

You can start your application any time at mikesteeleloans.my1003app.com and Mike will follow up to walk you through the rest.

Explore related SW Florida resources

Conventional Loans VA Loans Jumbo Loans Refinance Mortgage Calculators Cape Coral Fort Myers
Answers for SW Florida Buyers

Frequently Asked Questions

What is the 2026 FHA loan limit in Lee County, Florida?
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For 2026, the FHA loan limit for a single-family home in Lee County (Cape Coral, Fort Myers, Lehigh Acres) is $541,287. Collier County (Naples, Marco Island) has a higher FHA limit of $764,750 because of its higher home values. These limits cover the large majority of purchase prices across Southwest Florida.

How much do I need for a down payment on an FHA loan?
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FHA requires as little as 3.5% down if your credit score is 580 or higher. On a $350,000 SW Florida home, that's about $12,250. Down payment funds can come from savings, a gift from family, or certain down payment assistance programs — Mike can help you identify which sources you qualify to use.

What credit score do I need for an FHA loan in SW Florida?
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FHA officially allows scores as low as 500 (with 10% down) or 580 (with 3.5% down). In practice most lenders look for 580+. Mike works with 100+ lenders, so if one lender's overlay is too strict for your score, he can shop your file to a lender with more flexible FHA guidelines.

What is FHA mortgage insurance (MIP) and how long does it last?
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FHA loans carry an upfront mortgage insurance premium (1.75% of the loan, usually financed) plus an annual MIP paid monthly. On most 30-year FHA loans with the minimum down payment, annual MIP stays for the life of the loan. A common strategy is to refinance out of FHA into a conventional loan later once you have ~20% equity — Mike can map out that path for you.

Can I use an FHA loan for a condo in Cape Coral or Fort Myers?
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Yes, but the condo project generally must be FHA-approved (or qualify for single-unit approval). In SW Florida this matters because Florida's condo reserve and structural-inspection laws have affected many associations' finances. Mike checks project approval and reviews the association's SIRS/reserve status before you get too far down the road.

Is an FHA loan better than a conventional loan?
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It depends on your credit and down payment. FHA tends to win for lower credit scores and smaller down payments; conventional often wins if you have a 680+ score and can put down 5% or more, because you can cancel PMI later. Because Mike is a broker, he can price both side by side and show you the real monthly-payment difference for your situation.

Ready to see if FHA is right for you?

Get a fast pre-approval and a side-by-side comparison of FHA vs. conventional for your SW Florida home. No obligation, no pressure — just straight answers from a local broker.

Apply Online in Minutes (239) 571-6943