FHA Loan Programs

The Federal Housing Administration (FHA) offers mortgage insurance on loans made by FHA-approved lenders. FHA loans are ideal for first-time homebuyers or buyers with less-than-perfect credit.

Key features of FHA loans:

• Down payments as low as 3.5%

• Flexible credit requirements (as low as 580)

• Lower closing costs

• Can be combined with down payment assistance programs

FHA loans are available in all 50 states and are often used by buyers who don’t qualify for conventional loans.

• Credit score of 580+ for 3.5% down, or 500–579 with 10% down

• Debt-to-income ratio generally below 43%

• Must occupy the home as your primary residence

• Steady employment and income history

• Property must meet FHA appraisal and safety standards

• Lower down payment than conventional loans

• Easier credit qualifications

• Can be used to buy single-family homes, condos, or multifamily (up to 4 units)

• May allow for gift funds or assistance to cover down payment

• Refinance options like FHA Streamline Refinance available later

1. Find an FHA-approved lender in your area

2. Get pre-approved and check your credit score

3. Submit proof of income, employment, and assets

4. Find a home that meets FHA guidelines

5. Undergo FHA appraisal and finalize underwriting

6. Close on your FHA-backed mortgage