A veteran client nearing retirement initially inquired whether they could buy a home in Fort Myers with a VA loan. It may seem surprising since there isn't a large military base in the area, but Florida has no income tax and consistently attracts veterans settling down after retirement, making inquiries about VA loans not uncommon. $348,000. This is the median sale price in Fort Myers as of August 2026. This figure is 6.2% lower than the previous year, and for Lee County as a whole, it stands at around $375,000.

This price range indicates that both conventional loans and FHA loans remain practical options. Lee County is not designated as a high-cost area by the FHFA, so the 2026 conforming loan limit is the same as the national standard at $832,750, and the FHA loan limit follows the national minimum of $541,287. In simpler terms, this means that for homes in this price range, buyers can choose between conventional and FHA loans without worrying about exceeding the conforming limit.

Conventional loans are favorable in terms of interest rates and PMI conditions when a credit score of 680 or higher and a down payment of at least 10% can be prepared, while FHA loans allow starting with a 3.5% down payment for those with a credit score of 580 or higher, making them still accessible for first-time homebuyers. However, it should be noted that if the down payment is less than 10%, MIP must be paid throughout the loan term.

If a veteran client can use a VA loan, the biggest advantage is that they can proceed without a down payment and without PMI. However, it is important to note that a funding fee will apply, which needs to be calculated differently than for conventional or FHA loans.

USDA loans are also a surprisingly viable option in this area. There are 1,202 USDA loans remaining in Lee County, with an average loan balance of $98,852, over 90% of which are first-time homebuyers. Both Cape Coral and Fort Myers are partially included in USDA-designated areas, especially in the eastern part of Lee County, where eligible addresses can be found. If income criteria can be met, it is worth considering since it can be done without a down payment.

There are also many investors looking into this area for rental income. Due to the steady tourist demand, some approach it with short-term rentals, but short-term rental regulations can vary by city, so it is wise to check local regulations before purchasing. It should also be considered that investment properties often have higher down payment requirements than owner-occupied properties, and the burden of insurance costs, especially during hurricane season, should be factored into the yield calculations.

When comparing conventional, FHA, VA, and USDA loans side by side, ultimately, four conditions narrow down the options: credit score, down payment capacity, veteran status, and whether the property address is USDA-designated. If the credit score is low and funds are tight, it is best to start with FHA, and if the client is a veteran, checking VA first and then comparing the other conditions is the quickest approach in practice. If planning to settle down after retirement, it is advisable to reassess loan conditions from the perspective of total living expenses, including monthly payments, property taxes, and insurance costs.

When choosing a neighborhood based on school districts preferred by Korean families, it is advisable to refer to GreatSchools ratings, but since school district boundaries change frequently, it is recommended to verify the assigned school for the specific address before purchasing. For those moving from the north, Florida's property tax and insurance structure, especially hurricane insurance costs, may feel significantly different from their previous state, so it is wise to double-check the actual burden before closing.

This article is not intended as investment or legal advice, so please verify with lending institutions and real estate professionals before making any contracts.