Low down payments, flexible credit requirements, and competitive rates — FHA loans are designed to make homeownership accessible to more Americans.
Backed by the Federal Housing Administration, FHA loans were created to help everyday Americans — especially those who don't fit the rigid requirements of conventional lending. Whether your credit isn't perfect, your savings are thin, or you're buying for the first time, FHA opens doors that other programs can't.
FHA loans offer some of the most borrower-friendly terms in the mortgage industry.
Put down as little as 3.5% with a 580+ credit score. Your entire down payment can even come from a family gift.
FHA accepts credit scores as low as 580 for 3.5% down, or 500-579 with 10% down. No other major program is this flexible.
Because FHA loans are government-insured, lenders can offer lower interest rates than many conventional programs, even for lower credit scores.
Your entire 3.5% down payment can come from a family member, employer, or approved down payment assistance program.
FHA allows debt-to-income ratios up to 57% with compensating factors — much more lenient than conventional loans capped at 43-50%.
FHA finances 1-4 unit properties as long as you live in one unit. Rental income from other units can help you qualify.
From purchasing your first home to renovating a fixer-upper, there's an FHA program for every goal.
The classic FHA loan for buying a home. Low down payment, flexible credit, and competitive rates make this the go-to for first-time and credit-challenged buyers.
Already have an FHA loan? Streamline into a lower rate with reduced documentation. No appraisal, no income verification, and minimal closing costs.
Access your home equity for debt consolidation, home improvements, or any purpose. Refinance up to 80% of your home's value — even if your current loan isn't FHA.
Finance the purchase and renovation of a home in a single loan. The FHA 203(k) lets you buy a fixer-upper and roll the repair costs into your mortgage.
FHA loans require mortgage insurance to protect the lender. Here's exactly how it works.
FHA mortgage insurance has two components: an upfront premium paid at closing and an annual premium split into monthly payments.
| Type | Amount | When Paid |
|---|---|---|
| Upfront MIP (UFMIP) | 1.75% of loan | At closing (can be financed) |
| Annual MIP (≤ $726,200) | 0.55%/year | Monthly, added to payment |
| Annual MIP (> $726,200) | 0.75%/year | Monthly, added to payment |
| 15-yr term, ≤ 78% LTV | 0.15%/year | Monthly (11 years) |
On a $300,000 loan, your upfront MIP would be $5,250 (usually financed into the loan), and your monthly MIP would be approximately $137.50/month at the 0.55% annual rate.
For most FHA loans with less than 10% down, MIP lasts for the life of the loan. With 10% or more down, MIP drops off after 11 years.
See how FHA stacks up against conventional financing.
| Feature | FHA Loan | Conventional |
|---|---|---|
| Minimum Down Payment | 3.5% | 3-5% |
| Minimum Credit Score | 580 (or 500 w/ 10% down) | 620-680 |
| Gift Funds for Full Down Payment | ✓ Yes | Varies by program |
| Max Debt-to-Income Ratio | Up to 57% | 43-50% |
| Seller Concessions | Up to 6% | 3-6% (varies by LTV) |
| Mortgage Insurance | Required (MIP) | Required until 80% LTV (PMI) |
| MI Removable? | Refi to conventional at 80% LTV | ✓ Auto-drops at 78% LTV |
| Non-Occupant Co-Borrower | ✓ Yes | ✗ Limited |
| Post-Bankruptcy Waiting Period | 2 years | 4 years |
| Post-Foreclosure Waiting Period | 3 years | 7 years |
Low down payment, flexible credit, competitive rates — let's find out if FHA is the right fit for your homeownership goals.