FHA Loans

Government-backed mortgages with as little as 3.5% down

Perfect for first-time homebuyers and those with lower credit scores

What is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a government agency within the U.S. Department of Housing and Urban Development (HUD). FHA loans are designed to help Americans become homeowners by offering more lenient qualification requirements than conventional loans.

Key Features

• Government-insured protection for lenders
• Lower down payment requirements
• More flexible credit guidelines
• Assumable by future buyers

Who It's For

• First-time homebuyers
• Buyers with lower credit scores
• Those with limited savings
• Repeat buyers who qualify

FHA Loan Benefits

Low Down Payment

As low as 3.5% down payment with credit score of 580+

Only 3.5% down

Flexible Credit

Qualify with credit scores as low as 500 with 10% down

Min 500 score

Lower Closing Costs

Seller can contribute up to 6% toward closing costs

Save thousands

Assumable Loan

Low-Cost Areas

$498,257

Most affordable housing markets

High-Cost Areas

$1,149,825

Expensive metro areas like NYC, SF

National Average

$766,550

Standard limit for most locations

FHA vs. Conventional Loans

Feature	FHA Loan	Conventional
Minimum Down Payment	3.5%	3-20%
Minimum Credit Score	580	620
Mortgage Insurance	Required (life of loan)	Required (<20% down)
Debt-to-Income Ratio	Up to 50%	Up to 43%
Interest Rates	Competitive	Varies by credit

FHA Loan Costs

Upfront Mortgage Insurance Premium (UFMIP)

1.75% of loan amount

Can be rolled into loan

Example: $3,500 on $200k loan

Annual Mortgage Insurance Premium (MIP)

0.45% - 1.05% annually

Paid monthly with mortgage

Example: $75-175/month on $200k loan

Down Payment

3.5% minimum

Can use gifts or grants

Example: $7,000 on $200k home

Closing Costs

2-5% of loan

Seller can pay up to 6%

Example: $4,000-10,000

Is an FHA Loan Right for You?

First-Time Homebuyers

Perfect for those purchasing their first home with limited savings

Lower Credit Scores

Ideal if your credit score is below 620 but above 580

Limited Down Payment

Great option when you have less than 20% saved for down payment

Growing Families

Works well for multi-family properties with up to 4 units

How to Get an FHA Loan

Get Pre-Approved

Takes 10 minutes

Find out how much you can borrow and show sellers you're serious

Find Your Home

Work with agent

Search for FHA-eligible properties within your budget

Complete Application

30-45 days

Submit full loan application with required documentation

Close & Move In

Congratulations!

Sign final paperwork and receive keys to your new home

Ready to Apply for an FHA Loan?

Get pre-approved in minutes and start your homeownership journey

Apply Now Talk to a Loan Officer