FHA Loans

    Government-backed loans with low down payments and flexible requirements

    Is This Loan Program Right For You?

    Get a personalized recommendation based on your financial situation. See if you qualify and explore your options.

    Secure, 2-minute form
    No SSN required
    No obligation
    5-Star Rated by 100% of Past Clients

    What is an FHA Loan?

    An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help more Americans achieve homeownership. These loans are particularly beneficial for first-time homebuyers and those with less-than-perfect credit.

    FHA loans require lower down payments and credit scores than many conventional loans, making homeownership more accessible. The FHA insurance protects lenders, which allows them to offer more favorable terms to borrowers.

    Key Benefits

    Down payment as low as 3.5% with a 580+ credit score
    Lower credit score requirements (as low as 500 with 10% down)
    More lenient debt-to-income ratio guidelines
    Easier qualification after bankruptcy or foreclosure
    Seller can contribute up to 6% toward closing costs
    Assumable loans that can be transferred to future buyers

    Requirements

    Credit Score:580+ for 3.5% down, 500-579 for 10% down
    Down Payment:3.5% to 10%
    Debt-to-Income Ratio:Up to 43% (sometimes 50% with compensating factors)
    Property Requirements:Must be primary residence and meet FHA standards

    Who Should Consider This?

    • • First-time homebuyers
    • • Those with lower credit scores
    • • Buyers with limited savings for down payment
    • • Borrowers with higher debt-to-income ratios
    • • Anyone who needs more flexible qualification
    • • Those recovering from financial difficulties

    Important to Know

    Mortgage Insurance: FHA loans require both upfront mortgage insurance (1.75% of the loan amount) and annual mortgage insurance premiums. For loans with less than 10% down, the annual premium remains for the life of the loan.

    Loan Limits: FHA loans have maximum limits that vary by county. In 2024, the floor is $498,257 and can go up to $1,149,825 in high-cost areas.

    Property Standards: The property must meet FHA minimum property standards and pass an FHA appraisal, which is more strict than conventional appraisals.