Qualify with a lower credit scorePut down less at the closing tableAchieve your dream of homeownership
Get approved even with past credit issues or higher debt amounts.
See if you can qualify for a lower rate than other types of home loans.
Keep more money in your pocket with a low 3.5% down payment.
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See your best loan options with technology that analyzes your finances in real time.
Pick the right loan and term that helps you achieve your unique homeownership goals.
Get approved and funded quickly, so you can enjoy your new financial freedom.
FHA loans are insured by the Federal Housing Administration, allowing lenders to offer financing to borrowers with lower credit scores and smaller down payments.
Most borrowers need a 580+ credit score (FICO) for the 3.5% down option (10% down for 500–579). The home must meet The Department of Housing and Urban Development (HUD)'s minimum property standards.
FHA rates are typically competitive because they’re backed by federal insurance. Apply online for your personalized FHA loan options.
FHA appraisals can extend the timeline slightly versus conventional loans. Most FHA purchases close in 30 to 45 days.
Your monthly payment includes principal, interest, taxes, insurance, and the FHA mortgage insurance premium (MIP). Same payment every month for the entire loan (excluding taxes and insurance).
FHA loans require just 3.5% down with a 580 FICO. The down payment can come entirely from gifts. Mortgage insurance is required, but it's what makes the low down payment possible.
FHA loans are insured by the federal government to expand access to homeownership for buyers who don't fit conventional underwriting.
The 3.5% down payment and flexible credit standards make FHA the most accessible path to a first home for many buyers.
FHA accepts FICO scores as low as 500 with 10% down, well below the conventional minimum.
FHA's flexible DTI standards help buyers with student loans, car loans, or other debt qualify for more home.
The full down payment and closing costs can come from gift funds from family, broader than conventional rules.
FHA underwriting is more flexible than conventional, but specific minimums still apply.
580+ for 3.5% down; 500–579 with 10% down. These are the federal floors; individual lenders may set higher minimums.
Up to 50%+ with compensating factors, well above most conventional limits.
3.5% with 580+ FICO; the full down payment can come from gift funds.
Must be a primary residence that meets HUD's minimum property standards; FHA loan limits apply by county.
FHA loans open the door to homeownership for buyers who'd struggle to qualify for conventional financing at the cost of mortgage insurance.
FHA loans deliver access where conventional financing falls short, but the mortgage insurance can outlast the loan term.
Just 3.5% down with a 580 FICO; 10% down with as low as 500.
Approval possible with past credit issues, including bankruptcy or foreclosure after the required waiting periods.
Up to 50%+ in some cases, with compensating factors like reserves or strong credit.
Down payment and closing costs can come entirely from family gifts.
Future buyers may be able to assume your FHA loan at your existing rate - a major advantage when rates are higher than your locked rate.
Annual MIP continues for the entire term when you start at less than 10% down, even after you've built substantial equity. With 10%+ down, MIP cancels after 11 years; most FHA borrowers don't put down 10%, so plan for lifetime MIP.
1.75% of the loan amount due at closing (financeable, but still a real cost).
The home must meet HUD's minimum property standards. Fixer-uppers may need repairs before close.
FHA county limits are generally below conforming limits, capping how much home you can buy.
FHA loans aren't available for investment properties or second homes.
An FHA loan is a government-backed mortgage that lets people with less-than-ideal credit buy a home with as little as 3.5% down. Continue Reading...
FHA home loans open doors for home buyers who might struggle with conventional mortgages. You’ll likely qualify with a 580+ credit score (3.5% down) or even 500-579 (10% down). If you have a steady income and meet your lender’s debt-to-income and credit score requirements, FHA home loans might be for you.
FHA loans and FHA refinance loans are government-backed mortgages with looser credit requirements (as low as 500) and lower down payments (as low as 3.5%). The lower down payment amount requires buyers to carry mandatory mortgage insurance for the loan’s lifetime. Conventional loans require better credit (620+) but don’t have insurance requirements with 20% down. Conventional loans also work for more than just primary residences.
Here’s a breakdown of the pros and cons of an FHA loan:
Pros of an FHA Loan:
Cons of an FHA Loan:
