FHA Loans
Government-backed financing with flexible credit requirements and down payments as low as 3.5%.
FHA loans are insured by the Federal Housing Administration, which allows lenders to offer more flexible qualification guidelines than conventional loans. This makes FHA financing especially popular among first-time buyers, buyers with lower credit scores, and anyone who needs a lower down payment option.
With an FHA loan, you can qualify with a credit score as low as 580 and put as little as 3.5% down. The trade-off is Mortgage Insurance Premium (MIP), which adds to your monthly payment. Sarah helps clients weigh the pros and cons of FHA vs. conventional to find the best fit for their situation.
FHA loans can be used for single-family homes, approved condos, townhouses, and some multi-unit properties (up to 4 units if you live in one). The property must be your primary residence. FHA does not allow investment property financing.
FHA at a Glance
Min. Credit Score
580
3.5% down
Down Payment
3.5%
Gift funds allowed
DTI Ratio
≤50%
With compensating factors
MIP
Required
Upfront + monthly
Frequently Asked Questions
FHA loans are available with credit scores as low as 580 with 3.5% down, or 500-579 with 10% down. This flexibility makes FHA loans one of the most accessible programs for buyers who don't qualify for conventional financing.
Mortgage Insurance Premium (MIP) is the FHA's version of mortgage insurance. Unlike PMI on conventional loans, FHA MIP includes both an upfront premium (1.75% of the loan amount, usually rolled into the loan) and an annual premium paid monthly. For most FHA loans originated today, MIP lasts for the life of the loan unless you refinance into a conventional loan.
Yes, but the condo project must be on the FHA-approved list. Sarah can help you check whether a specific condo community is approved or help with the approval process.
No, that's a common misconception. FHA loans are available to any buyer who will occupy the property as their primary residence. You can use FHA financing whether it's your first purchase or your fifth.
See If You Qualify
Sarah will review your situation and let you know if FHA is the right fit, or if a conventional loan might actually save you more.
Get Pre-Approved