FHA Loans
A lower down payment and more flexible credit standards.
What are FHA Loans?
FHA loans are insured by the Federal Housing Administration. Because the government backs the loan, lenders can offer more flexible credit and down payment requirements, which makes FHA a common path for first-time buyers.
FHA loans are for owner-occupied homes with one to four units.
Benefits
- Down payment as low as 3.5% with a qualifying credit score
- More flexible credit and debt-to-income guidelines
- Gift funds can be used for the down payment
- Competitive fixed rates
- Option to refinance later into a conventional loan
Requirements
- The home must be your primary residence
- Credit score of 580 or higher for the lowest down payment; 500 to 579 may qualify with 10% down
- Steady income and employment history
- Upfront and annual FHA mortgage insurance premiums
- Property must meet FHA appraisal standards
- FHA loan limits vary by county
Frequently asked questions
How much do I need to put down?
As little as 3.5% if your credit score qualifies. Lower scores may need 10% down.
Is mortgage insurance required?
Yes. FHA loans carry an upfront premium and an annual premium that is paid monthly.
Can I use an FHA loan for an investment property?
No. FHA loans are for a primary residence.
Are there loan limits?
Yes. FHA limits are set by county, so the amount you can borrow depends on where the home is.
Programs, rates and eligibility are subject to change and to underwriting approval. This page is general information and not a commitment to lend.
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