FHA Loans
Government-backed financing with a low 3.5% down payment and flexible credit requirements.
Down Payment
3.5% min
Credit Score Min
580+
Loan Limits
Area-based
Best For
First-time buyers, lower credit
Government-backed financing that opens doors
An FHA loan is a mortgage insured by the Federal Housing Administration — a government agency within the U.S. Department of Housing and Urban Development (HUD). Because the government backs the loan, lenders take on less risk, which allows them to offer more flexible credit requirements and lower down payments than conventional loans typically require.
FHA loans are popular with first-time homebuyers and those with imperfect credit because they allow down payments as low as 3.5% with a credit score of 580 or above. Borrowers with scores between 500 and 579 can still qualify with a 10% down payment. It's one of the most accessible mortgage programs available for buyers who are still building their financial profile.
The trade-off is mortgage insurance premium (MIP), which is required on all FHA loans. This includes an upfront MIP of 1.75% of the loan amount (typically financed into the loan) and an annual MIP paid monthly. For many buyers, the lower barrier to entry is well worth the cost — and refinancing into a conventional loan later can eliminate it once enough equity is built.
FHA Loan at a glance
- Down payment as low as 3.5% with 580+ credit score
- Government-insured through HUD
- Mortgage insurance (MIP) required
- Debt-to-income ratios up to 57% may qualify
- Popular choice for first-time buyers
FHA Home Loans
Who is it best for?
FHA loans are designed to open the door to homeownership for buyers who might not qualify for conventional financing. If you're still building credit or saving for a larger down payment, an FHA loan may be your best path forward.
First-time buyers with limited savings
Homebuyers who need a low down payment to get started on the path to ownership.
Credit scores in the 580–679 range
Buyers who don't yet qualify for conventional loan rates but are actively building their profile.
Recovering from past credit events
Those rebuilding after a bankruptcy or foreclosure — waiting periods apply but FHA is often the fastest path back.
Gift fund buyers
FHA allows 100% of the down payment to come from gift funds — ideal if family is helping you get into a home.
Recent credit challenges
Homebuyers with blemishes in their credit history who want government-backed protection and competitive rates.
Buyers who want accessible financing
Anyone seeking a streamlined path to homeownership backed by the federal government.
Key Benefits
Low Down Payment
Just 3.5% down with a 580+ credit score — one of the lowest minimum down payments available for a home purchase.
Flexible Credit Requirements
FHA loans are accessible to borrowers with less-than-perfect credit, including those with scores as low as 500 (with 10% down).
Competitive Rates
Government backing reduces lender risk, which often translates into competitive interest rates even for borrowers with lower credit scores.
Requirements
Common questions
Comparing your options?
These loan products are commonly compared to FHA financing.
Let's see if an FHA loan is right for you.
Apply online to get started, or call us to talk through your credit and down payment situation. We average a 15-day clear-to-close and we'll make sure you understand every step.
NMLS #1898199 · Austin Williams NMLS #885656 · Equal Housing Opportunity