FHA Loan
FHA Loans (Federal Housing Administration)
Affordable Financing for First-Time and Credit-Challenged Buyers The FHA Loan, backed by the Federal Housing Administration, is one of the most popular mortgage programs in the U.S. Designed to make homeownership more accessible, it offers flexible credit requirements, low down payments, and competitive interest rates.
What Is an FHA Loan?
An FHA loan is a government-insured mortgage designed to help buyers with limited savings or lower credit scores qualify for affordable home financing. Because the FHA insures the loan, lenders can offer more lenient qualification standards - making it easier for borrowers who might not meet strict conventional guidelines.​
Key Benefits
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Low Down Payment – As Little as 3.5% Buy a home with minimal upfront cost, making homeownership more achievable.
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Flexible Credit Requirements Perfect for borrowers with credit scores as low as 580 (or even lower with compensating factors).
Easier Qualification FHA guidelines are more forgiving regarding income, debt-to-income ratio, and credit history.
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Assumable Loan Option If you sell your home, the buyer may be able to assume your FHA loan — a great advantage if rates rise.
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Refinance Options Includes FHA Streamline Refinance, a simplified process for current FHA borrowers with no appraisal or income verification required
Basic Requirements
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To qualify for an FHA loan, borrowers typically need:
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Credit Score: Minimum 580 for 3.5% down, or 500 - 579 with 10% down.
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Down Payment: Minimum 3.5% of purchase price (can come from gifts or assistance programs).
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Debt-to-Income (DTI): Usually ≤ 56.9% (depending on credit profile).
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Property Type: Primary residence only (1- 4 unit properties, condos, or certain manufactured homes).
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Employment History: At least 2 years of steady income. Mortgage
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Insurance: Requires both an upfront MIP (1.75%) and monthly MIP - often lower than private PMI for lower-credit borrowers.
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You can check current limits on the FHA Loan Limits Lookup Tool.
