Purchase · FHA Loans
FHA Loans: A Flexible Path to a New Home
Lower down payments and more forgiving credit requirements make FHA loans one of the most popular ways to buy — especially for first-time buyers.
Overview
What is an FHA loan?
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration. Because the FHA shares the risk with lenders, borrowers can qualify with smaller down payments and lower credit scores than most conventional mortgages require. It's a great fit for first-time buyers, buyers rebuilding their credit, and anyone who wants to keep more cash in their pocket at closing.
As Little as 3.5% Down
Buy with a fraction of the down payment a conventional loan often asks for.
Flexible Credit
Qualify with a credit score as low as 580 for the lowest down payment.
Competitive Rates
Government backing helps keep FHA interest rates competitive.
Multi-Family Homes Allowed
FHA Loans allow for borrowers to purchase multi-family homes
Eligibility
Is a FHA Loan Right For You?
FHA mortgages are designed to make homeownership more attainable. Here's some of what we look at:
Borrower requirements
- Credit Scores as Low as 500+ For Borrowers Looking to Put 3.5% Down Minimum Score is 580
- Steady, Verifiable Income Borrowers Should be Able to Document Consistent Earning Ability
- Flexible Debt to Income Ratios FHA Loans Allow for Higher Debt to Income Ratios, Giving Borrowers More Purchasing Power
- Move Into the Home Promptly Borrowers Must Occupy the Home Within 60 Days of Closing
Property requirements
- FHA Appraisal The Home Must Meet FHA Minimum Property Standards
- Loans Under County Limits Maximum loan amounts vary by county
- Purchasing a Primary Residence FHA Loans are For Buying a Home to Live In
- Multi-Family, Single Family, and Condos Allowed At Least One Unit of the Property Must be Owner Occupied
Loan Details
The Numbers at a Glance
FHA loans require mortgage insurance paid in the form of an upfront premium (often financed into the loan) plus a monthly premium. On most FHA loans the monthly premium stays for the life of the loan — any of our loan officers can walk you through whether FHA or a low-down-payment conventional option makes sense for your situation.
FAQ
Common Questions
Is an FHA loan only for first-time buyers?
No. FHA loans are open to repeat buyers too. They're simply most popular with first-time buyers because of the low down payment and flexible credit guidelines.
What is MIP and how long do I pay it?
MIP is the FHA's mortgage insurance premium. You pay a one-time upfront premium plus a monthly premium. With the minimum down payment, the monthly premium typically lasts the life of the loan, though you can later refinance out of FHA once you've built enough equity.
Can my down payment be a gift?
Yes. Your entire 3.5% down payment can come as a gift from a family member, with a simple gift letter documenting it.
How fast can I close on an FHA loan?
Once you're pre-qualified and under contract, our streamlined process can take qualified buyers to the closing table in as little as three weeks.
Get Started
See if an FHA Loan is Right For You
Tell us a little about yourself and a loan officer will reach out — usually the same day.