Finance · FHA Loan Program

FHA Loans. 3.5% Down. More Buyers Qualify.

An FHA loan is one of the most accessible paths to homeownership: a lower down payment, flexible credit, and broad eligibility. See if it fits your situation.

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3.5%

Minimum down payment

580+

Typical credit score

Up to 57%

Max debt to income

What it is

Government backed and buyer friendly.

An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government backs the loan, lenders can offer more flexible qualifying standards than conventional mortgages, making a home purchase possible for a wider range of buyers.

You do not have to be a first time buyer. Anyone who meets the credit, income, and property requirements can apply. FHA loans must be used for a primary residence, not an investment or vacation property.

Why buyers choose FHA

Low 3.5% down

Put down as little as 3.5% with a 580 or higher score. The down payment may be fully gift funds from family.

Flexible credit

Scores as low as 580 qualify for 3.5% down, and 500 to 579 may qualify with 10% down, where conventional often needs 620 or higher.

Higher DTI allowed

FHA can allow debt to income ratios up to 57% with compensating factors, which helps with student loans or car payments.

Seller can help

Sellers may contribute up to 6% of the price toward your closing costs, reducing the cash you need at the table.

How FHA compares

General guidelines only. Actual requirements vary by lender and scenario.
Feature	FHA	VA	USDA	Conventional
Down payment	3.5%	$0	$0	3 to 5%
Mortgage insurance	MIP	None	0.35%/yr fee	PMI until 20% equity
Typical min. credit	580	Lender set	640	620+
Loan limits	County limits	Full entitlement	No hard cap	Conforming limit
Property use	Primary	Primary	Primary (eligible area)	Any
Who it fits	Most buyers	Veterans & military	Rural/suburban, income eligible	Good credit buyers

An FHA loan may fit if you are…

Buying with a smaller down payment or limited savings
Working with a credit score in the 500 to 620 range
Using gift funds from family for your down payment
Carrying student loans or other monthly debt
Buying a primary residence to live in

Common questions

FHA loan FAQ

Can I use an FHA loan if I have owned a home before?

Yes. FHA loans are not limited to first time buyers. You can use one as long as you meet the credit, income, and property requirements and the home will be your primary residence. You generally cannot hold two active FHA loans at the same time.

How does FHA mortgage insurance work?

FHA loans include an upfront mortgage insurance premium, commonly 1.75% of the loan and usually financed into the balance, plus an annual premium paid monthly. If your down payment is under 10%, the annual premium generally stays for the life of the loan. Exact amounts depend on your loan term, amount, and down payment.

Can I use an FHA loan on a fixer upper?

Yes, through the FHA 203(k) renovation program, which lets you finance the purchase and eligible repairs in one loan. There is a Standard 203(k) for larger, structural work and a Limited 203(k) for smaller, non structural projects.

Can the seller pay my closing costs?

FHA allows sellers to contribute up to 6% of the purchase price toward your closing costs when negotiated into your offer.

My score is under 580. Can I still work toward buying?

Often, yes. A credit review can identify what is holding your score back and outline a plan to reach the 580 threshold. We can point you to credit support resources at no cost or obligation.

Free, no obligation

Start your FHA mortgage review

Share a few details and a licensed mortgage advisor will follow up to walk through your FHA options. No pressure, no obligation.

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