FHA Home Loans
As Low As 3.5% Down
FHA loans are backed by the Federal Housing Administration, offering lower credit requirements and minimal down payments. Perfect for first-time homebuyers.
Why Choose an FHA Loan?
FHA loans make homeownership accessible with flexible requirements that traditional lenders can't match.
Low Down Payment
Only 3.5% down with a 580+ credit score. That's just $14,000 on a $400,000 home — compared to $80,000 for conventional 20% down.
Flexible Credit Requirements
FHA loans accept credit scores as low as 580 (or 500 with 10% down). Past bankruptcies and foreclosures may be acceptable after waiting periods.
Competitive Rates
Because FHA loans are government-insured, lenders can offer lower interest rates than many conventional loan products.
Gift Funds Allowed
Your entire down payment can come from gift funds from family, employers, or down payment assistance programs. No personal savings required.
FHA Loan Requirements
What You Need to Qualify
- Credit score of 580+ (3.5% down) or 500+ (10% down)
- Steady employment history (2+ years preferred)
- Debt-to-income ratio below 43% (up to 50% with compensating factors)
- The home must be your primary residence
- Property must meet FHA appraisal standards
- Mortgage insurance premium (MIP) required
Things to Know
- Upfront MIP of 1.75% added to loan balance
- Annual MIP of 0.55% for the life of the loan (if <10% down)
- MIP can be removed with refinance to conventional once at 20% equity
- FHA loan limits vary by county ($472,030 to $1,149,825)
- Investment properties and second homes not eligible
- Minimum property standards may limit some fixer-uppers
FHA vs. Conventional Loans
Complete Guide to FHA Home Loans
FHA loans are one of the most popular mortgage options for first-time homebuyers and borrowers with less-than-perfect credit. Backed by the Federal Housing Administration, these loans allow lenders to offer more favorable terms because the government insures against default.
How FHA Mortgage Insurance Works
FHA loans require two types of mortgage insurance: an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount, which can be rolled into your loan, and an annual MIP of typically 0.55% paid monthly. For loans with less than 10% down, MIP lasts the life of the loan. With 10%+ down, MIP drops off after 11 years.
FHA Loan Limits by Area
FHA loan limits vary by county based on local housing costs. In most areas, the limit is $472,030 for a single-family home. In high-cost areas like San Francisco, New York City, and Los Angeles, limits can reach $1,149,825. Check your county's limit to see how much you can borrow.
Who Should Consider an FHA Loan?
- First-time homebuyers with limited savings for a down payment
- Borrowers with credit scores between 580-650
- Buyers who want to use gift funds for their down payment
- Those recovering from bankruptcy or foreclosure
- Buyers in high-cost areas who need higher loan limits
See If You Qualify for an FHA Loan
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