FHA loans are government backed mortgages insured by the Federal Housing Administration. They're designed to help buyers who may not qualify for conventional financing get into a home with less money down and more flexible credit requirements.
Put as little as 3.5% down if your credit score is 580 or higher. Buyers with scores between 500 and 579 may still qualify with 10% down.
FHA loans are more forgiving of past credit challenges than conventional loans, making them a strong option for buyers rebuilding their credit history.
Because FHA loans are insured by the federal government, lenders can offer more favorable terms to borrowers who might not otherwise qualify.
FHA loans open the door for many buyers who would not qualify for conventional financing, but they do come with some tradeoffs worth understanding before you decide.
FHA financing is a great fit for buyers who need more flexibility on credit or down payment and want a reliable path to homeownership.
Buyers purchasing their first home who want a lower down payment requirement and more flexible credit guidelines than conventional loans offer.
Borrowers who have faced past credit challenges and are working toward homeownership with a score that may not yet meet conventional standards.
Buyers who have steady income but need to preserve cash reserves and want to get into a home with as little down as possible.
Straight answers to the questions we hear most often.
An FHA loan is a government backed mortgage insured by the Federal Housing Administration. It allows buyers to qualify with lower credit scores and smaller down payments than most conventional loans require.
A score of 580 or higher qualifies you for 3.5% down. Scores between 500 and 579 may still qualify with 10% down depending on the lender.
As little as 3.5% if your credit score is 580 or above. The down payment can come from your own savings, a gift, or an approved down payment assistance program.
Yes. FHA loans require both an upfront mortgage insurance premium and an annual premium. This is the tradeoff for the more flexible qualification requirements.
FHA loans are for primary residences only. The property must meet FHA condition and safety standards and fall within the loan limits for your county.
