FHA Loans

FHA Loans — Lower Down Payment, More Access

Government-backed financing with just 3.5% down. Designed to help first-time buyers and those with limited savings achieve homeownership.

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What is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). Because the government backs these loans, lenders can offer them with lower down payments and more flexible credit requirements than conventional mortgages.

FHA loans have been a cornerstone of first-time homeownership in America since 1934. They require as little as 3.5% down with a 580+ credit score, making them the most accessible path to homeownership for millions of buyers each year.

The tradeoff is mortgage insurance premium (MIP), which is required for the life of the loan in most cases. However, for buyers who need a lower barrier to entry, FHA often remains the best choice.

Who Is It For?

FHA loans are designed for buyers who may not meet the stricter requirements of conventional financing — especially first-time buyers building their credit history or buyers recovering from past financial challenges.

First-time buyers
No prior homeownership required
Lower credit scores
580+ qualifies for 3.5% down
Limited savings
Minimum down payment requirement
Credit rebuilders
Recovering from past challenges

Key Benefits

3.5% Down Payment

One of the lowest down payments available for any mortgage product

Flexible Credit

Credit scores as low as 580 qualify. 500+ with a 10% down payment

Gift Funds OK

Entire down payment can come from gift funds from family or employer

Assumable Mortgage

Future buyers can take over your FHA loan at your original rate

FHA Loan Details

Down Payment Minimum
3.5% (credit 580+) · 10% (credit 500–579)
Credit Score Minimum
580+ for 3.5% down · 500+ for 10% down
2024 FHA Loan Limit (floor)
$498,257 single-family
2024 FHA Loan Limit (ceiling)
$1,149,825 (high-cost areas)
Loan Terms
15 or 30 years (fixed rate)
Upfront MIP
1.75% of loan amount (financed into loan)
Annual MIP
0.15%–0.75% depending on LTV and term
Debt-to-Income (DTI)
Up to 57% with compensating factors
Property Types
Primary residence only (1–4 units)

*Rates and limits are for informational purposes only. Contact us for your personalized rate quote.

FHA Loan Eligibility

FHA loans have more flexible requirements — here's what you need to qualify.

Basic Requirements

  • Credit score 580+ (3.5% down) or 500+ (10% down)
  • Stable 2-year employment history
  • Property must be primary residence
  • Debt-to-income ratio under 57%
  • No recent bankruptcies (2-year wait) or foreclosures (3-year wait)
  • Property must meet FHA minimum standards

Who Qualifies

  • U.S. citizens and permanent residents
  • Non-permanent residents with valid work authorization
  • First-time and repeat homebuyers
  • Buyers with gift funds for down payment
  • Buyers using down payment assistance programs
  • Self-employed borrowers (2-year tax history required)

Frequently Asked Questions

Ready to Apply for an FHA Loan?

Don't let credit score or down payment hold you back. Our FHA specialists will guide you to homeownership.

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