FHA Loans: Your Path to Homeownership
With down payments as low as 3.5% and flexible credit requirements, FHA loans make buying a home more accessible than ever.
Low Down Payment
Buy a home with as little as 3.5% down. The down payment can even come from a gift or grant.
Flexible Credit
Qualify with credit scores starting as low as 580. Past credit issues are often acceptable.
Seller Assist
Sellers can pay up to 6% of your closing costs, significantly reducing your out-of-pocket expenses.
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government insures these loans, lenders can offer more lenient qualifying guidelines. This makes FHA loans one of the most popular choices for first-time homebuyers and those with less-than-perfect credit.
FHA Loan Requirements
- Credit Score: 580 minimum for maximum financing (3.5% down).
- Down Payment: 3.5% minimum, which can be a gift from family.
- Debt-to-Income (DTI): Typically up to 43%, but higher ratios can be approved with compensating factors.
- Property Condition: The home must meet basic safety and habitability standards set by HUD.
Important Note on Mortgage Insurance
FHA loans require both an Upfront Mortgage Insurance Premium (UFMIP) and an annual Mortgage Insurance Premium (MIP). The UFMIP is typically rolled into the total loan amount, while the annual MIP is paid monthly as part of your mortgage payment.