FHA Loans
A government-backed loan with a small down payment and more room on credit.
Who This Fits
FHA loans are insured by the Federal Housing Administration, part of HUD. They are popular with first-time buyers and with people whose credit is still growing. You must live in the home.
Your Choices
- FHA purchase loan: buy a home you will live in with a small down payment.
- FHA Streamline refinance: a simpler refinance for people who already have an FHA loan.
- FHA cash-out refinance: take some cash from your home's value.
- 1 to 4 units: you can buy a duplex, triplex, or fourplex if you live in one of the units.
Basic Requirements
These are general guidelines. Each lender has its own rules, and programs can change.
- Down payment: as low as 3.5% with a credit score of 580 or higher.
- Lower scores: with a score from 500 to 579, FHA rules need at least 10% down. Each lender may also have its own minimum.
- Gift money: family can often help with the down payment.
- Mortgage insurance: FHA loans have an upfront premium and a monthly premium.
- Loan size: FHA sets its own limits by county. Mark can check the limit for your area.
- The home: it must pass FHA appraisal rules for safety and condition.
How It Works
- Talk: Mark looks at your credit and savings.
- Compare: he shows you FHA and other choices side by side.
- Pre-approval: you shop with a real budget.
- Appraisal: FHA has its own home condition rules.
- Close: you sign and get your keys.
Questions People Ask
What credit score do I need for FHA?
FHA rules allow 3.5% down with a 580 or higher score. Scores from 500 to 579 need 10% down. Lenders may set higher minimums, so Mark shops for one that fits.
Can I use FHA for a second home?
No. FHA loans are for a home you will live in as your main home.
Can I refinance out of FHA later?
Yes. Many people move to a conventional loan later to drop FHA mortgage insurance, if their equity and credit allow.
Related
Conventional Loans · First-Time Home Buyers · Refinance · All Calculators · Areas We Serve
All loans depend on credit, income, and property review. Not everyone will qualify. Programs can change. This is general information, not a loan offer. Mark Jost, NMLS #150914. Heathrow Mortgage, Company NMLS #1849599. Equal Housing Opportunity.