Insights / Palm Beach County FHA loans: limits, requirements
September 25, 2026
Palm Beach County FHA loans: limits, requirements
Palm Beach County's FHA loan limit is set once a year by HUD, based on the national conforming loan limit the Federal Housing Finance Agency publishes each November, and it determines the largest FHA-insured mortgage you can get in the county before you're pushed into a jumbo or conventional program. Down payment starts at 3.5% for borrowers with a credit score of 580 or higher; buyers with scores between 500 and 579 need 10% down. The dollar limit itself shifts every year, so never quote last year's number as this year's ceiling.
If you searched "palm beach county fha," you're probably trying to figure out one of two things: how big an FHA loan you can actually get here, or whether you qualify at all. Both answers depend on numbers that HUD updates annually, and on credit and income rules that are more forgiving than people expect. Here's how the pieces fit together.
What is the FHA loan limit for Palm Beach County?
The limit is the maximum loan amount FHA will insure for a single-family home in the county, and it's published fresh every year. Because it changes annually and because using a stale number is one of the most common mistakes buyers and agents make, we don't publish the raw figure in blog copy that can go stale. Check the live Palm Beach County loan limits page or the broader conforming and FHA loan limits lookup for the number in effect right now. If you're shopping near the top end of the county's limit, confirm the figure before you write an offer, not after.
How is the Palm Beach County FHA loan limit set each year?
HUD sets FHA limits county by county using a formula tied to the national conforming loan limit that the Federal Housing Finance Agency (FHFA) announces annually, typically in late November, based on home price data through the third quarter. By HUD rule, no county's FHA limit can fall below a floor of 65% of the national conforming loan limit, and in higher-cost areas it can rise as high as a ceiling of 150% of that same conforming number. Where Palm Beach County lands between that floor and ceiling depends on local median home prices, which HUD recalculates every year. That's also why the new numbers for the coming year land in late fall, which is exactly when loan-limit searches spike, buyers want to know whether next year's limit will help them before they lock in a purchase.
What credit score do I need for an FHA loan in Palm Beach County?
FHA's own minimum is a 580 credit score for the standard 3.5% down payment. Borrowers with scores between 500 and 579 can still qualify, but HUD requires 10% down in that band instead of 3.5%. Below 500, FHA won't insure the loan at all. Those are HUD's floor requirements; many lenders layer their own higher minimums (called overlays) on top, so a 580 score that qualifies at one shop might get a decline at another. If your score sits in that gray zone, it's worth talking through options with a loan officer before you assume you're stuck with conventional or non-QM financing.
What's the minimum down payment for FHA loans in Palm Beach County?
Same rule as above stated the other direction: 3.5% down if your credit score is 580 or better, 10% down if it's 500 to 579. FHA also allows the down payment to come from gifts, approved down payment assistance programs, or a combination, which is one reason FHA stays popular with first-time buyers in a county where prices have pushed many purchases close to the FHA ceiling. Run your numbers through the affordability calculator before you start touring homes so the down payment target isn't a surprise at contract time.
Does Palm Beach County have "high-cost" FHA limits?
It sits above the national floor because local home values run higher than the baseline, but whether it reaches the full high-cost ceiling depends on the current year's HUD calculation, and that can shift year to year as prices move. This is exactly why we point people to the live limits page rather than quoting a fixed figure that could be a year out of date by the time you read it.
FHA vs conventional in Palm Beach County: which fits better?
Both insure owner-occupied purchases, but the qualifying math and the mortgage insurance rules diverge in ways that matter for a Palm Beach County budget.
| Feature | FHA | Conventional |
|---|---|---|
| Minimum down payment | 3.5% (580+ score) or 10% (500-579) | As low as 3% for qualified first-time buyers, per Fannie Mae/Freddie Mac guidelines |
| Minimum credit score | 580 for 3.5% down (HUD) | Typically higher lender minimums; agency guidelines allow lower with strong compensating factors |
| Mortgage insurance | Upfront premium of 1.75% of the loan amount (financed in), plus an annual premium for most of the loan term | Private mortgage insurance (PMI), cancellable once you reach 80% loan-to-value |
| Debt-to-income benchmark | 31/43 traditional guideline, higher with strong compensating factors via automated underwriting | Generally up to 45-50% with strong credit/reserves |
| Property condition standards | Stricter minimum property standards (safety, soundness) | More flexible |
| Loan limit source | HUD, tied to FHFA's conforming loan limit | FHFA conforming loan limit directly |
If your credit is still building or your down payment is thin, FHA usually wins. If your score is strong and you want to drop mortgage insurance sooner, run the comparison against conventional before you commit.
What property types qualify for FHA in Palm Beach County?
FHA insures 1-4 unit owner-occupied properties, single-family homes, townhomes, and condos in HUD-approved condo projects (or condos that qualify for FHA's single-unit spot approval process). Manufactured homes qualify too, but they need to meet HUD's foundation and certification standards. Investment properties don't qualify at all, FHA is strictly an owner-occupant program; if you're buying to rent it out, look at conventional investment financing or a DSCR loan through non-QM instead.
A real scenario
A buyer we worked with went under contract on a Palm Beach County condo in December, with a purchase price that landed right at the edge of that calendar year's outgoing FHA limit. Structured as-is, the loan amount needed would have exceeded the limit still in effect, forcing either a larger cash down payment or a delay. Because the new year's HUD limit was expected within weeks (FHFA's announcement typically lands in late November, with HUD's county-level FHA numbers following shortly after), we timed the FHA case number assignment to fall after the new limit took effect on January 1. The higher limit covered the loan amount cleanly, no extra cash to closing, no renegotiation. The lesson isn't unique to that file: anyone shopping near the top of the county's FHA ceiling in Q4 should ask whether waiting a few weeks for the new year's number changes the math.
Frequently asked questions
What is the current FHA loan limit for Palm Beach County?
It changes every year, so check the Palm Beach County loan limits page or the general limits lookup for the number currently in effect rather than relying on a figure from a prior year.
How much down payment do I need for an FHA loan in Palm Beach County?
HUD requires 3.5% down if your credit score is 580 or higher, and 10% down if your score falls between 500 and 579; scores below 500 don't qualify for FHA financing.
What credit score is required for FHA loans in Palm Beach County?
HUD's floor is a 580 score for the 3.5% down payment option, though individual lenders can and do set higher overlay minimums, so approval can vary by lender even at the same credit score.
Can I use an FHA loan to buy a condo in Palm Beach County?
Yes, but the condo project generally needs to be on HUD's approved list, or the specific unit needs to qualify through FHA's single-unit spot approval process; not every building in the county carries approval.
Does the Palm Beach County FHA loan limit change for 2-4 unit properties?
Yes, HUD publishes separate, higher limits for 2-unit, 3-unit, and 4-unit properties within the same county, since a duplex or fourplex costs more than a single-family home.
Is Palm Beach County a high-cost FHA area?
Its limit sits above HUD's national floor because local home values exceed the baseline, though how close it comes to the top-tier ceiling depends on that year's calculation, which is why checking the current figure matters more than remembering last year's.
What's the FHA debt-to-income limit in Palm Beach County?
The traditional HUD benchmark is a 31/43 qualifying ratio, but FHA's automated underwriting system regularly approves higher ratios for borrowers with strong compensating factors like reserves or a longer credit history.
When do new FHA loan limits take effect each year?
FHFA typically announces the new national conforming loan limit in late November based on home price data through the third quarter, and HUD's updated county-level FHA limits follow shortly after, taking effect January 1.
Reviewed by Jesse Gonzalez, NMLS #278103
This article is for general information only and is not a loan approval, rate quote, or financial advice. Program guidelines change and every file is different, so talk to a licensed loan officer about your scenario. True Blue Lending Corporation, NMLS #2380218. Equal Housing Opportunity.