FHA vs USDA vs VA vs Conventional in Florida: Which Loan Wins for You? (2026)

Last updated July 6, 2026 · Written by Keith Meredith, Florida mortgage broker · NMLS #303217

Four programs finance almost every home in Florida, and picking the wrong one quietly costs thousands — not in some dramatic way, just a little every month for thirty years. I run these four against each other all day. Here's the honest comparison, the real 2026 numbers, and the crossover rules that actually decide it.

The Four Programs, Side by Side (2026)

All four finance manufactured homes (yes, really — we close them constantly), and all four work for first-time and repeat buyers alike.

The Crossover Rules That Actually Decide It

VA first — always, if you're eligible

If you served, start at VA and make every other program beat it. $0 down, no monthly mortgage insurance, strong rates, and the one-time funding fee (2.15% first use) is financed in — and waived entirely with a service-connected disability rating. In some cases a veteran can carry two VA loans at once. It loses only in rare scenarios, like very large down payments where conventional's no-funding-fee math edges ahead.

USDA second — if the map and the income limit say yes

The best-kept secret in Florida lending. About 97% of the state's geography is USDA-eligible, the income limit (~$112,000 for a 1–4 person household in most counties) is higher than people assume, and the 0.35% annual fee is roughly half of FHA's mortgage insurance. $0 down plus the cheapest MI in the low-down world is hard to beat — the trade-off is the extra USDA review time on your contract.

FHA vs conventional — the 680 rule of thumb (and why it moves)

Here's the honest version: 680+ score with a decent down payment usually favors conventional — the PMI is cheaper at good scores and it cancels at ~20% equity, while FHA's mortgage insurance usually rides for the life of the loan. Lower scores or tight debt ratios usually favor FHA — it forgives both better than anything else, and the seller can pay up to 6% of your costs even at 3.5% down. But PMI pricing is driven by your exact score and down payment, so the crossover point moves file by file. It's a 10-minute side-by-side that can save you thousands — make your lender do it.

Keith's take

The mistake I see most isn't picking the wrong program — it's never comparing at all. A loan officer with one product sells you that product. With 200+ wholesale lenders behind me, I genuinely don't care which of the four you end up in; I care that we ran them against each other first. When someone tells me another lender quoted them FHA without ever pricing conventional, I already know there's money on the table.

Four Buyers, Four Answers

• The nurse in Gainesville, 700 score, 5% saved: conventional first-time-buyer program, with Hometown Heroes covering most of the cash — cancellable PMI beats FHA's lifetime MIP at her score.
• The young family near Dunnellon, 640 score, almost nothing saved: USDA — $0 down, eligible address, income under the limit. FHA is the backup if the address fails the map.
• The veteran in Ocala, any score: VA, full stop — $0 down and no monthly MI. We've closed VA loans most lenders would have turned away on credit.
• The self-employed contractor with great income and a 600 score: FHA today — then refinance into conventional once score and equity allow. The program you start in isn't the program you have to die in.

Program Comparison FAQ

2026 limits and program figures as of publication; guidelines change and your file gets priced on its own facts. The side-by-side comparison in a pre-approval is the real answer.