FHA Loan Guide
FHA loans are a popular choice for first-time homebuyers and borrowers rebuilding credit, with a low down payment and flexible credit guidelines.
- Insured by FHA / HUD
- Flexible credit guidelines
- Low down payment
The basics
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development (HUD). This insurance protects lenders against losses, so they can offer financing with more flexible credit score and income requirements.
- Insured by
- FHA / HUD
- Best for
- First-time buyers
- Property
- Primary residence
How it works
Your FHA loan in four steps
From pre-approval to closing, you work with one licensed loan officer who keeps things moving.
- 01
Get pre-approved
Share your income, assets and credit. Your loan officer checks FHA eligibility and gives you a pre-approval letter.
- 02
Find your home
Shop with your pre-approval. After your offer is accepted, an FHA appraisal confirms the home's value and condition.
- 03
Underwriting
The lender reviews your file against FHA guidelines. We keep you updated and handle conditions with you.
- 04
Close and get your keys
Review your Closing Disclosure, sign at the title company and move in.
One dedicated loan officer
NMLS-licensed, from pre-approval to closing
Why borrowers choose FHA
FHA Loan Requirements & Benefits
FHA loans often have more flexible credit score and debt-to-income ratio requirements than conventional loans, which makes them a popular choice for first-time homebuyers and borrowers rebuilding their credit.
Do you qualify?
FHA Loan Requirements
What FHA lenders look for, and why each rule can work in your favor.
Minimum Down Payment
As low as 3.5% of the purchase price with a 580+ credit score.
Low Down Payment
The 3.5% minimum lets you buy sooner without saving 20% down.
Credit Score
A 580+ FICO score typically qualifies for 3.5% down; scores of 500–579 generally require 10% down.
Flexible Credit
FHA loans are often more forgiving of past credit issues than conventional loans.
Debt-to-Income Ratio (DTI)
Generally a DTI ratio of 43% or less, though higher ratios may be allowed in some cases.
Flexible DTI
FHA guidelines can make it easier to qualify while carrying other monthly debts.
Residency
The home must be the borrower's primary residence.
Lower Upfront Cash
FHA loans help keep the cash needed at closing low, and sellers may contribute toward closing costs.
Income Stability
Borrowers must show steady income and proof of employment.
MIP
FHA loans require an upfront mortgage insurance premium (paid at closing or financed) and an annual MIP paid monthly, which makes the low down payment and flexible requirements possible.
- Get pre-approved
Not sure you qualify?
A licensed loan officer can review your credit, income and savings and tell you which loan fits, FHA or otherwise.
FHA loan FAQs
FHA guidelines allow a down payment of 3.5% with a credit score of 580 or higher, and 10% down with scores from 500 to 579. Lenders may set their own minimums.
Yes. FHA loans have an upfront mortgage insurance premium (UFMIP), which can be financed, and an annual premium paid monthly.
No. FHA loans are for a primary residence you'll live in, though a 2-4 unit property can qualify if you live in one of the units.
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