Can you use an FHA loan on new construction in Florida?

Yes. You can use an FHA loan to buy a new-construction home in Florida, whether it is not built yet, under construction, or finished with no one living in it yet. The builder and your lender have to provide HUD's required forms and inspections, and your loan has to fit under your county's 2026 FHA limit, which is $667,000 for a one-family home in Palm Beach, Broward and Miami-Dade counties.

Can you get an FHA loan on a brand-new home?

Yes. HUD Handbook 4000.1 (version issued Aug. 12, 2026, section II.A.8.i) has a full section on "New Construction." HUD sorts new homes into three stages:

• Proposed Construction: no concrete or permanent material has been placed yet. Digging the footing does not count.

• Under Construction: building has started, but the home is not 100% done and has no Certificate of Occupancy (CO).

• Existing Less than One Year: the home is 100% complete, the CO was issued less than a year ago, and no one has ever lived there.

The same section lists site-built homes (one to four units), condo units in approved projects or legal phases, and manufactured homes as eligible for New Construction financing.

What is an FHA loan, in plain words? The CFPB (checked Sept. 27, 2026) says FHA insures lenders against losses if a homeowner defaults, the cost of that insurance is passed along to you, and the standards to qualify are "generally more flexible than for conventional loans."

What does FHA require from the builder?

Most of the new-construction paperwork falls on the builder and your lender. HUD's handbook says the lender must collect:

• Form HUD-92541, the Builder's Certification of Plans, Specifications, and Site.

• Form HUD-92544, the Warranty of Completion of Construction.

• The required inspections, or a copy of the building permit and CO, based on how far along the home was when it was appraised.

• The builder's termite protection guarantee, form HUD-NPMA-99-A, unless the county is on HUD's termite exception list.

For a finished home under a year old, HUD accepts a copy of the CO or a final inspection. For a home not started yet, HUD accepts the permit and CO, or three inspections: footing, framing and final.

No matter which path is used, the lender must certify on form HUD-92800.5B that the home is 100% complete and meets HUD's Minimum Property Requirements and Minimum Property Standards.

In plain words: before you sign a contract, ask the builder's sales office whether they fill out HUD-92541 and HUD-92544 for FHA buyers. It is much better to find out early.

What are the 2026 FHA loan limits in Florida?

FHA limits cap how big a loan FHA will insure. HUD announced on Dec. 11, 2025 that for case numbers assigned on or after Jan. 1, 2026, the one-unit limit runs from a $541,287 "floor" in lower-cost areas to a $1,249,125 "ceiling" in the highest-cost areas.

Here is what HUD's FHA Mortgage Limits lookup (FHA Forward, CY2026, checked Sept. 27, 2026) shows for a one-family home in some Florida counties:

HUD's handbook says these limits apply to the base loan amount, before any upfront mortgage insurance is added. The financed upfront premium can go on top.

On a new home, lot premiums and upgrades raise the contract price. Check the full price against your county's limit before you pick options. If the loan would go over, ask your lender how much more cash that means, or whether a different loan fits better.

How much do you need down on an FHA loan?

HUD's handbook sets a Minimum Required Investment of at least 3.5% of the "Adjusted Value." On a purchase, that is the lower of the price (minus any inducements to purchase) or the appraised value.

Your credit score matters too. HUD says a score of 580 or higher is eligible for maximum financing, which is 96.5% of the value on a purchase. A score between 500 and 579 is limited to 90% loan-to-value, so you would need at least 10% down.

Builder money cannot cover that 3.5%. HUD says contributions from interested parties "may not be used for the Borrower's MRI."

What does FHA mortgage insurance cost?

FHA charges two premiums, listed in Appendix 1.0 of HUD's handbook:

• Upfront premium: 1.75% of the base loan amount. It can be financed into the loan or paid in cash.

• Annual premium, paid monthly: for loans longer than 15 years with a base amount of $726,200 or less, it is 0.50% when the loan-to-value is 95% or less, and 0.55% above 95%. At 90% or less it lasts 11 years. Above 90%, it lasts for the whole loan.

EXAMPLE ONLY: $400,000 price, appraisal equal to the price, 3.5% down, 30-year loan. Premium rates are from HUD Handbook 4000.1, Appendix 1.0 (checked Sept. 27, 2026).

In this example, the base loan of $386,000 is below every county limit in the table above.

Can a builder help pay your costs on an FHA loan?

Yes, within limits. HUD's handbook lists builders and developers as "Interested Parties." They may contribute up to 6% of the sales price toward your origination fees, other closing costs, prepaid items and discount points.

That 6% also covers any builder-paid permanent or temporary rate buydown, and any payment of your upfront premium. Money above 6%, or above your actual costs, is treated as an "inducement to purchase" and cuts the price used to figure your loan, dollar for dollar.

If a builder offers a temporary buydown, see What is a 2-1 buydown and is it worth it? Builder offers change often, so call 561-704-0091 for today's numbers.

How does the FHA appraisal work on a new home?

HUD's handbook says the lender must give the appraiser a signed form HUD-92541 dated no more than 30 days before the appraisal was ordered. If the home is 90% complete or less, the appraiser also gets the floor plan and plot plan.

For homes in a new subdivision, the comparable sales must include at least one sale from inside the subdivision and at least one from outside it.

What this means for new-construction buyers in Florida

• Look up your county's 2026 limit in HUD's lookup tool before you choose a lot or upgrades.

• Ask the builder early whether they complete HUD-92541 and HUD-92544 for FHA buyers.

• Keep builder incentives inside the 6% cap, and plan your own 3.5% down payment.

• If you want a condo, ask the lender to confirm the project is approved.

Once you close and move in, Florida's homestead exemption may lower your property tax bill. See our guide to the Florida homestead exemption on new construction.

National House Search is builder-neutral. We can help you find communities where the price and incentives fit FHA rules.

Common Questions

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Related reading: What is a 2-1 buydown and is it worth it? · Florida homestead exemption on new construction · Buying a new-construction townhome for the first time

This is general information, not financial, tax or legal advice. Figures checked September 27, 2026.