Hello! My fiancé and I just got engaged. We are from different parts of the US. His family is from all over and all mine from Michigan. Our ideal dream wedding is to be on the beach barefoot. No matter what or where we have it someone will have to travel.. We will be living in Florida by the time we get married, and want to have the wedding in the place we will be calling home.

My family is completely upset with all this and feel it should be in Michigan. It's been nothing but stress since we started talking about the engagement. I don't know what to do. I'm lost! And so stressed!

This is your day! You do your wedding where you want to do your wedding. I can't believe tnat your family is giving you such grief about it. I would try my hardest not to stress about it. In the end I believe that family will do their darndest to make it to your wedding no matter where you decided to have it. Congratulations and I wish you the best!

Why is your family upset? The cost of everyone traveling to Florida? They hoped you would get married in a "home" church? Something else?

One of my family members decided to get married in Vail, Co. The family is basically on the East Coast. The cost was astronomical.
There was a lot of resentment toward the bride and groom for the cost, and the bride and groom were resentful because more people couldn't afford the trip.

Is getting married in Florida with a reception back "home" feasible and would that make the family happier?

What about getting married at Sleeping Bear Dunes in Michigan?

Who's paying for the wedding itself?
That person or persons gets to decide.
If it's the two of you, pay for it all, say so, and that's final, they don't get to act like it's for them.
Tell everyone no gifts, and arrange group rates at hotels/motels/B&Bs and even places to camp, and plan far enough in advance so that they can get cheap airfares. I hope the wedding is set for next Feb or March, and it's far enough south in FL to make it a vacation for your guests. Otherwise a destination wedding is... I won't use the word I want to use, so I'll just say unfair.
I trust you aren't expecting people to get there and give gifts.

I agree that the people who pay for the wedding get to decide where it happens. It is not all about the bride, that's an old cliché that needs to die. Two people are getting married.
You cannot reasonably expect all guests to pay for flights and hotels, in this economy not everyone can afford such a luxury.