FHA Loans
Government-backed mortgages designed for first-time homebuyers and those with lower credit scores.
What is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help Americans become homeowners. FHA loans are especially popular among first-time homebuyers because they require lower down payments and more flexible credit requirements compared to conventional loans.
Benefits of FHA Loans
- Down payment as low as 3.5% with a credit score of 580 or higher
- More lenient credit score requirements (minimum 500 with 10% down)
- Higher debt-to-income ratios allowed
- Gifts and grants can be used for down payment
- Lower closing costs
- Assumable mortgages (can be transferred to new buyers)
Requirements
Credit Score
Minimum 580 (3.5% down) or 500 (10% down)
Down Payment
As low as 3.5%
Debt-to-Income Ratio
Up to 43% (higher with compensating factors)
Mortgage Insurance
Required for entire loan term (if down payment < 10%)
Is an FHA Loan Right for You?
FHA loans are ideal if you:
- Are a first-time homebuyer
- Have a credit score below 680
- Have limited funds for a down payment
- Have a higher debt-to-income ratio
- Want a more forgiving qualification process
Ready to Get Started?
Contact us today for a free consultation and see if you qualify for an FHA loan.