FHA loans are insured by the Federal Housing Administration, which lets lenders offer low down payments and more flexible credit guidelines. They are a popular choice for first-time buyers and anyone rebuilding credit.
An FHA loan is a mortgage insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development (HUD). Because the government insures the loan, lenders can approve borrowers with smaller down payments and lower credit scores than many conventional programs allow. FHA loans are for primary residences only.
Borrowers with a 580+ credit score may qualify with 3.5% down.
FHA guidelines look at your full credit picture, not just your score.
Your entire down payment can come from an eligible gift.
A future buyer may be able to take over your loan and rate.
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Typical guidelines call for a credit score of 580 or higher for 3.5% down. You will need steady income, a reasonable debt-to-income ratio and a property that will be your primary residence.
The home must meet FHA property standards, which an FHA-approved appraiser checks during the appraisal.
Back to topicsEvery FHA loan has two kinds of mortgage insurance premium (MIP):
If you put down less than 10%, annual MIP typically stays for the life of the loan. With 10% or more down it drops off after 11 years. Many borrowers refinance into a conventional loan once they reach about 20% equity to remove it.
Back to topicsFHA sets maximum loan amounts by county, and they change each year. High-cost areas have higher limits.
We will check the current limit for the area where you are buying before you start shopping.
Back to topicsFHA guidelines look at your full picture, not just your score. Past credit events such as a bankruptcy or foreclosure may be acceptable after a waiting period, especially if you have re-established good credit since.
If you are not quite ready, our team can suggest practical steps to strengthen your file.
Back to topicsIf you already have an FHA loan, an FHA Streamline Refinance can lower your rate with reduced paperwork and, in many cases, no new appraisal.
The refinance must provide a clear benefit, such as a lower payment.
Back to topicsThe FHA appraiser checks value and also confirms the home is safe, sound and secure. Items like peeling paint on older homes, missing handrails, roof problems or non-working utilities may need repair before closing.
Back to topicsTell us about your goals. A loan officer will confirm whether this program is the right fit.
We fill out the application with you and send a secure list of documents to upload.
We handle appraisal, underwriting and title, keeping you updated by phone, text or email.
Every file is different. Your loan officer will send an exact list.
Have a question that is not answered here? Ask a loan officer.
No. FHA loans do not have maximum income limits, only loan limits by county.
With less than 10% down, the annual premium typically lasts for the life of the loan. With 10% or more down, it typically ends after 11 years.
Yes, although you can generally have only one FHA loan at a time.
Yes. You can buy a 2 to 4 unit property with 3.5% down as long as you live in one of the units, and projected rent from the other units may help you qualify.
Typically two years after a Chapter 7 discharge, and in some cases during a Chapter 13 plan with court approval.
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Tell us a little about your plans. A licensed loan officer will call you, usually the same business day.
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