For home buyers and homeowners

FHA Loan

Benefit from lower monthly payments and a steady interest rate. Ideal for buying or refinancing.

See if it’s perfect for me

Is a FHA Loan for you?

You’re working with limited savings

Put down as little as 3.5% of your home’s price—ideal if saving for a large down payment is a challenge.

Your credit isn’t perfect

FHA loans allow lower credit scores and may work even if you’ve had past financial setbacks.

You’re a first-time homebuyer

Your household income must be below a certain threshold to be eligible

You want term flexibility

Choose between a 15-year or 30-year FHA loan, whether you’re buying your first home or refinancing.

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Understanding the guidelines

These are general pointers. If they sound like you, let’s talk—no pressure. We’ll explore if a FHA loan is your best fit or find one that truly matches your goals.

Loan purpose

Use this loan to buy a home or refinance your current one. We guide you through both.

About refinancing

Credit profiles

Lenders typically look for a score of 620+. Let’s review your credit picture together.

About credit

Debt to income

Your DTI should ideally be under 45% to manage new payments.

About DTI ratios

Closing costs

These are fees for loan services, separate from down payment.

About closing costs

Estimate Your Possibilities

Use our calculators to explore numbers and understand what might work for you.

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Frequently asked questions.

You asked about this loan. We listened. Here are answers based on research from fellow homebuyers, like you.

To qualify for an FHA loan, a type of government-backed mortgage, you’ll generally need a credit score of at least 580 for a 3.5% down payment, or a score between 500-579 with a 10% down payment. Lenders will also assess your debt-to-income ratio (how much debt you have compared to your income) and verify your employment and income. You must also plan to live in the home as your primary residence.

FHA loans are known for their low down payment options, making homeownership more accessible. If your credit score is 580 or higher, you might only need a 3.5% down payment, which can come from savings, a gift from a family member, or a down payment assistance program. This is significantly lower than what’s often required for conventional mortgages.

FHA loans require a Mortgage Insurance Premium (MIP) to protect the lender if you default on your home loan. You’ll pay an Upfront Mortgage Insurance Premium (UFMIP) once at closing, which is typically 1.75% of the loan amount, and an annual MIP, paid monthly as part of your mortgage payment, for a specific period depending on your loan terms and down payment. This insurance is what allows lenders to offer loans with more flexible qualifying requirements.

To find an FHA-approved lender, start by researching banks, credit unions, and mortgage companies that explicitly state they offer FHA loans, as not all lenders are authorized. It’s wise to compare offers from at least three different lenders, looking closely at interest rates, fees, and their experience with first-time homebuyers using FHA financing. Don’t be afraid to ask about their specific FHA loan process and typical closing times.

Preparing for an FHA appraisal involves understanding that the appraiser will assess the property’s value and ensure it meets specific health and safety standards set by the Department of Housing and Urban Development (HUD). Before the appraisal, you can visually inspect for obvious issues like peeling paint (especially if the home was built before 1978, due to lead paint concerns), broken windows, missing handrails, or any potential safety hazards. Addressing these small FHA property requirements beforehand can help prevent delays or a list of required repairs.

Yes, it’s possible to get an FHA loan even with a lower credit score or after a bankruptcy, as FHA guidelines are more flexible than many conventional loans. Generally, you may need to wait 1-2 years after a Chapter 7 bankruptcy discharge or demonstrate a consistent payment history after a Chapter 13 filing. Lenders will also consider “compensating factors,” like a larger down payment, low debts, or steady employment, which can strengthen your application despite past credit challenges.