FHA loans are insured by the Federal Housing Administration, which is why lenders can offer more flexible credit and down payment requirements than a conventional loan. It's one of the most popular options for first-time buyers.
Generally a good fit if you...
- Have less than 20% saved for a down payment
- Have had some past credit bumps but are on solid footing now
- Are buying your first home
- Carry a bit more monthly debt than conventional guidelines typically allow
General guidelines
- Down payment: as low as 3.5% with a credit score of 580 or higher
- Credit score: scores as low as 500 may qualify with a larger (10%) down payment
- Debt-to-income ratio: often allows higher ratios than conventional, especially with strong compensating factors
- Mortgage insurance (MIP): an upfront premium plus an annual premium paid monthly — unlike PMI, it usually stays for the life of the loan unless you refinance
Wondering if FHA is the easier path to your first home?
Every situation is different, and these are general guidelines — the fastest way to know where you stand is a quick conversation. Send us a message or visit our team page to apply directly.