All loan programsLoan program
FHA Loan
Government‑backed loans designed for first‑time buyers and credit‑building borrowers.
Min down payment
3.5%
Min credit score
580
Max loan (most areas)
$524,225
Mortgage Insurance
Upfront 1.75% + monthly
Overview
About the FHA loan
FHA loans are insured by the Federal Housing Administration and require lower down payments and credit scores than most conventional loans, making homeownership more accessible.
Best for
Who this fits
- First‑time homebuyers
- Credit scores 580–680
- Buyers with limited savings
Pros
- Low 3.5% down payment
- Flexible credit guidelines
- Gift funds allowed for full down payment
- Assumable by future buyers
Things to consider
- Mortgage insurance for life of loan (in most cases)
- Loan limits lower than conventional
- Property condition requirements
Requirements
What you'll need
- Credit score 580+ (3.5% down) or 500–579 (10% down)
- DTI typically under 50% with compensating factors
- Property must be primary residence
- Home must meet FHA minimum property standards
FAQ
Common questions
Can I refinance out of FHA mortgage insurance?
Yes. Once you have 20% equity, you can refinance into a conventional loan and drop FHA mortgage insurance entirely.
Can I use an FHA loan for a fixer‑upper?
Yes — the FHA 203(k) loan program lets you finance both the purchase and renovation in a single loan.
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