FHA LoansLow Down Payment, Big Opportunity
FHA loans are government-backed mortgages with flexible requirements, making homeownership accessible with as little as 3.5% down.
Why Choose an FHA Loan?
FHA loans are insured by the Federal Housing Administration, allowing lenders to offer more flexible terms to borrowers who might not qualify for conventional financing.
Low Down Payment
As low as 3.5% down with a credit score of 580+
Flexible Credit Requirements
Qualify with credit scores as low as 580
Higher Debt-to-Income Ratios
More lenient DTI requirements than conventional loans
Gift Funds Allowed
Use gift money from family for your down payment
Assumable Loans
Future buyers can assume your FHA loan
FHA Loan Quick Facts
FHA Loan Requirements
Borrower Requirements
- •Credit score of 580+ (3.5% down) or 500-579 (10% down)
- •Steady employment history (2+ years preferred)
- •Valid Social Security number
- •Lawful U.S. residency
- •Debt-to-income ratio typically under 50%
Property Requirements
- •Must be primary residence
- •Pass FHA appraisal requirements
- •Meet minimum property standards
- •Single-family homes, condos, or multi-family (1-4 units)
- •Cannot exceed FHA loan limits for your area
Understanding FHA Mortgage Insurance
FHA loans require mortgage insurance to protect lenders. Here's what you need to know:
Upfront Mortgage Insurance Premium (UFMIP)
1.75% of the loan amount, typically financed into your loan
Example: On a $300,000 loan, UFMIP would be $5,250
Annual Mortgage Insurance Premium (MIP)
0.55% to 1.05% of the loan amount annually (paid monthly)
Rate depends on loan amount, loan-to-value ratio, and loan term
Ready to Get Your FHA Loan?
Let's discuss if an FHA loan is the right choice for your home purchase. Our experts are here to guide you through every step.