Cape Coral FHA Home Loan

Cape Coral FHA loan

We specialize in Cape Coral FHA home financing.

At OnMortgage, we help Cape Coral homebuyers secure FHA loans designed for flexibility and affordability. Whether you have limited credit, minimal savings, or are purchasing your first home, an FHA loan could be the ideal solution.

On Mortgage is a leading Cape Coral mortgage broker, offering direct access to a wide network of FHA-approved lenders. Unlike local banks that only offer their own limited programs, we compare multiple lending options to find the best match for your credit profile, down payment, and long-term goals—often resulting in lower rates, reduced fees, and better loan terms.

Let OnMortgage guide you through the FHA loan process with expert support from pre-approval to closing—and be sure to check today's Cape Coral FHA loan rates to explore your options.

Cape Coral FHA Loan Benefits: Affordable Homeownership Starts Here

FHA loans remain one of the most accessible mortgage options for homebuyers in Cape Coral, offering low down payments, flexible credit guidelines, and competitive interest rates. Whether you’re purchasing your first home or returning to the market after a financial setback, an FHA loan can help make homeownership more achievable.

At On Mortgage, we specialize in guiding clients through the Cape Coral FHA loan process. We stay current with FHA program updates and partner with approved lenders to help you lock in favorable terms. If you’re looking for a government-backed loan with built-in flexibility, an FHA loan in Cape Coral may be the right fit—let us walk you through the options and simplify the process from start to finish.

Cape Coral FHA Loans for First-Time Homebuyers

Buying your first home in Cape Coral? FHA loans are a popular choice for first-time buyers thanks to low down payments, flexible credit requirements, and government backing. With as little as 3.5% down, you can start building equity while keeping more cash in your pocket.

At On Mortgage, we specialize in guiding Cape Coral first-time homebuyers through the FHA loan process. From pre-approval to closing, our expert team makes it simple to qualify, find the right property, and secure affordable monthly payments tailored to your budget.

First-time homebuyer using FHA loan in Cape Coral

On Mortgage: Your Cape Coral FHA Loan Expert

At On Mortgage, we specialize in FHA loans for first-time buyers and families across Cape Coral. From riverfront homes to Gulf-access communities, our team knows the schools, parks, and local trends that matter most in Lee County.
FHA home in Cape Coral

2025 Cape Coral FHA Loan Limits

For Lee County (includes Cape Coral), the 2025 FHA loan limit for single-family homes is $524,225; duplexes go up to $671,200, and 4-unit properties to $1,008,300.

FHA condo loan Cape Coral

FHA Financing in Cape Coral

Whether you're looking at single-family riverside homes or condos in communities like Cape Harbour or Sandoval, FHA offers just 3.5% down and flexible credit—making entry into popular neighborhoods easier.

FHA approval in Cape Coral

April–May 2025 Market Snapshot

In April 2025, the median sale price in Cape Coral was about $369,000, down 8% year-over-year, and homes sold in around 70 days on average.

Why Choose On Mortgage for Your Cape Coral FHA Loan

We offer personalized guidance, smooth approvals, and local insight for families and first-time buyers.
  • Low 3.5% down on FHA loans with lenient credit
  • Support selecting FHA-approved condos in Cape Harbour, Sandoval, and Bella Vida
  • Insight into top schools: Coral Cove Elementary, Gulfview Middle, and Cape Coral High
  • Neighborhood tours: Pelican, Tarpon Point, and Royal Tee
  • Park info: Four Mile Cove, Rotary Park, and the Cape Coral Yacht Club Beach
From waterfront condos to inland family homes, On Mortgage gets Cape Coral buyers FHA-ready.
Cape Coral FHA mortgage support

Frequently Asked Questions – FHA Loans



What is an FHA Loan and How Does it Work?

An FHA loan, insured by the Federal Housing Administration (FHA), is a mortgage designed to make homeownership more accessible. It's especially beneficial for first-time homebuyers, allowing for lower credit scores and a minimum down payment of 3.5%. FHA loans typically include mortgage insurance premiums and are only for primary residences—not for investment or vacation homes.

What are the Minimum Credit Score Requirements for an FHA Loan?

Most borrowers can qualify for an FHA loan with a credit score of 580 and a 3.5% down payment. If your credit score is between 500 and 579, a 10% down payment may be required. Some lenders may allow 100% FHA financing with a score of 620 or higher.

How Much Down Payment is Needed for an FHA Loan?

For borrowers with a credit score of 580 or above, the minimum FHA down payment is 3.5% of the purchase price. Those with scores between 500 and 579 typically need 10% down. Some programs may allow 100% financing with qualifying credit.

What is FHA Mortgage Insurance Premium (MIP)?

FHA loans require two types of mortgage insurance. Upfront Mortgage Insurance Premium (UFMIP) is 1.75% of the loan amount, usually financed into the loan. Annual Mortgage Insurance Premium (MIP) is a monthly fee added to your payment, based on loan amount, term, and loan-to-value ratio.

How Long Do I Pay FHA Mortgage Insurance (MIP)?

If you put down less than 10%, MIP is required for the life of the loan. With 10% or more down, MIP ends after 11 years. You can remove MIP early by refinancing into a conventional loan if eligible.

What are the Debt-to-Income (DTI) Ratio Requirements for an FHA Loan?

FHA loans generally allow a back-end DTI ratio of up to 43%, though higher ratios may be approved with compensating factors like strong credit, cash reserves, or a co-signer.

Do FHA Loans Have Specific Property Requirements or Inspections?

Yes. FHA loans require properties to meet HUD's minimum property standards for safety and livability. An FHA-approved appraiser will conduct an appraisal to ensure the home meets these criteria.

Are There Income Limits for FHA Loans?

No. FHA loans have no income limits. Eligibility is based on your ability to repay the loan, not how much you earn. However, your income must be stable and sufficient to meet monthly mortgage payments.

Can I Use an FHA Loan for an Investment Property or Second Home?

No. FHA loans are only for primary residences. You must plan to occupy the home as your main residence, typically within 60 days of closing. They cannot be used for rental properties or vacation homes.

Can I Get Down Payment Assistance with an FHA Loan?

Yes. FHA loans work well with down payment assistance (DPA) programs offered by state and local agencies. Gift funds from family or approved sources can also be used to cover the down payment and some closing costs.

Our Reviews

We Serve the Entire State of Florida

At On Mortgage, we proudly provide mortgage solutions to homebuyers and investors throughout Florida. Here are some of the cities we serve near Miami, but we aren’t limited to these locations:

• Boca Raton • Boynton Beach • Cape Coral • Clearwater • Coral Springs • Davie • Daytona Beach • Deerfield Beach • Doral • Fort Lauderdale • Hallandale Beach • Hialeah • Hollywood • Homestead • Jacksonville • Kendall • Lauderdale Lakes • Miami • Miami Beach • Miramar • Orlando • Parkland • Pembroke Pines • Pine Hills • Plantation • Pompano Beach • Port Saint Lucie • Saint Petersburg • Sunrise • Tallahassee • Tampa • West Palm Beach • Weston