FHA Loans in Homestead, FL: Prices, Limits and Local Help

Short answer

In Homestead, an FHA loan lets you buy with as little as 3.5% down, and the 2026 Miami-Dade FHA limit of $667,000 for a one-unit home sits well above Homestead's Q2 2026 median single-family price of $500,000, as of October 2026. That means most Homestead homes fit FHA, and buyers may be able to stack the Homestead CRA, Miami-Dade County and state assistance on top, subject to credit approval and program funding.

Homestead prices vs. the 2026 FHA limit

As of October 2026, MIAMI REALTORS data for Q2 2026 shows these numbers for the City of Homestead:

• Single-family homes: 131 sales, median price $500,000, 59 median days to contract, 5.7 months of supply.
• Townhouses and condos: 104 sales, median price $336,500, 47 median days to contract, 11.8 months of supply.

The 2026 FHA limit for Miami-Dade is $667,000 for one unit ($853,900 for two units). Unlike Coral Gables or Miami Beach, where prices often pass the limit, Homestead buyers rarely hit it. The full county table and what the limit caps are in our Miami-Dade FHA limits guide.

With 11.8 months of townhouse and condo supply, buyers have room to negotiate. FHA allows the seller to pay part of your closing costs as a seller concession, which helps keep cash to close low.

What FHA costs on a Homestead home: down payment and MIP

HUD says the FHA down payment can be as low as 3.5%. A minimum decision credit score of 580 or higher allows maximum financing; 500 to 579 limits you to 90% loan-to-value; below 500 is not eligible (HUD Mortgagee Letter 2026-11, as of October 2026).

FHA mortgage insurance (MIP) has two parts for loans over 15 years with a base amount up to $726,200:

• Upfront MIP: 1.75% of the base loan, usually financed into the loan.
• Annual MIP: 0.55% with less than 5% down; 0.50% with 5% to 10% down; both for the life of the loan. With 10% or more down, 0.50% for 11 years.

Two Homestead examples with 3.5% down (taxes, insurance and interest not included; rates vary daily, call for today's pricing):

• $500,000 single-family home: $17,500 down, $482,500 base loan, $8,443.75 upfront MIP, annual MIP about $2,654 a year (about $221 a month).
• $336,500 townhouse: $11,777.50 down, $324,722.50 base loan, $5,682.64 upfront MIP, annual MIP about $1,786 a year (about $149 a month).

For how this compares with private mortgage insurance, see FHA vs. conventional in Miami-Dade.

Down payment help for Homestead buyers

Homestead has its own program on top of county and state help. Terms below are as of October 2026, from each program's own page; funds run in rounds, so availability changes.

• Homestead CRA First-Time Homebuyer's Program: up to $10,000, plus $5,000 more if you have lived in the CRA area for at least one year. 0% interest, no payments, forgiven after 10 years as your homesteaded primary residence. Income at or below 120% of AMI (the guidelines' 2024 table shows $136,200 for a family of four). You put in 1% of the price, complete an 8-hour HUD-approved class, and have no more than $25,000 in liquid assets (retirement accounts excluded). The home must be a single-family house or townhouse inside the CRA boundaries, which start with the Southwest Neighborhood. Condos are not eligible.
• Miami-Dade County Homebuyer Down Payment Assistance: up to $35,000, 0% interest, deferred up to 30 years, 1% buyer contribution, fixed-rate first mortgage only. Income under $136,500 for four people. Includes shared equity if you sell within 6 years.
• MDEAT Homeownership Assistance Program (HAP): up to $28,500 at or below 80% of AMI, or $14,500 above 80% up to 140%. 0%, forgiven after 20 years. Condos, townhomes and single-family homes are eligible.
• Florida Hometown Heroes: up to 5% of the first mortgage, from $10,000 to $35,000, as a 0% deferred second. FHA first mortgages are eligible. See Hometown Heroes 2026.

The CRA program requires pre-approval from a lender that participates in MDEAT's HAP. Layering more than one program is possible, but each has its own rules, and combined financing is usually capped near 105% of the price. Our Florida down payment assistance guide covers the statewide options.

Homestead property issues that affect an FHA loan

• HOA townhouse communities and FHA condo approval. Many Homestead townhomes from the 2000s sit in condo-style associations. FHA insures units in an FHA-approved project, or a single unit in a non-approved project of at least five units if it meets a subset of the rules. Some communities have let FHA approval lapse, so check before you write an offer.
• Flood zones. Low areas near Biscayne Bay and the Everglades are in FEMA zones that require flood insurance on an FHA loan. Some newer western communities are Zone X. Check the flood zone before you budget.
• Property taxes. The 2025 adopted total millage for Homestead is 20.9465 mills, including 5.9604 city operating, per the Miami-Dade Property Appraiser. Many newer communities also carry CDD assessments on the tax bill. File for the homestead exemption after closing.
• Condition. The FHA appraisal checks safety and soundness. The Homestead CRA program also disqualifies homes needing more than $10,000 in electrical, plumbing or structural repairs and homes with open permits or code violations.

Getting FHA pre-approved for Homestead with QMS

QMS Lending is an independent, bilingual mortgage broker in the Miami area with access to 100+ lenders. For a Homestead FHA buyer we:

• Check your credit score tier and debt-to-income against FHA and lender overlays.
• Confirm which assistance programs you may qualify for and which lenders accept them.
• Check FHA approval for the community before you make an offer.
• Give you a full pre-approval with MIP, taxes, flood and HOA built in.

See our FHA loans page or the Homestead mortgage broker page, or call 305-425-1990.