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Flexible underwriting
Down payment as low as 3.5%
Great for first-time home buyers
Low fixed rates
Popular FHA Loan Topics
Mortgage Rates for FHA Loans
Your mortgage rate is an important factor in your overall home payment and family budget. Our company is built to offer lower mortgage rates which will help make your home more affordable.
On average, our mortgage rates are .326% lower than the national average. This equates to $23,836 in life of loan interest savings. See details on rate savings calculation here.
Program Highlights
580 minimum credit score
Fixed Rates
Down payment assistance allowed
Primary Residence only
Down payments as low as 3.5%
Frequently Asked Questions
FHA loans are a great, flexible mortgage product. They tend to be best for borrowers with less than perfect credit and minimal down payment savings.
Who are FHA loans best for?
No, FHA loans are available to anyone, not just first-time buyers.
Do you have to be a first-time home buyer to get an FHA loan?
Interest rates on FHA loans can be lower than interest rates on other loan products because FHA loans are government insured against default. Also, FHA loans do not significantly increase due to lower credit scores, which can be advantageous for some borrowers.
How do FHA interest rates compare to other loan options?
FHA loans require both upfront and monthly mortgage insurance. You will pay an upfront mortgage insurance premium of 1.75%, calculated on your base loan amount. The upfront mortgage insurance premium is financed and added to your base loan amount.
FHA loans also require monthly mortgage insurance which is included in your monthly payment.
Do FHA loans require mortgage insurance?
FHA Loans
Overview
FHA mortgages are loans that are backed or insured by the Federal Housing Administration. FHA loans adhere to the guidelines set forth by the U.S. Department of Housing and Urban Development (HUD). These loans are helpful for low-to-moderate-income families and first-time home buyers who have little money saved.
According to data from the U.S. Census Bureau, FHA loans were used to purchase about 16% of the homes in 2022. FHA loans are great for home buyers with low-to-mid tier credit scores and have down payments of 3.5% or more. FHA loan programs make the possibility of homeownership attainable for a greater number of people.
What can I use an FHA loan for?
FHA loans can be used to purchase or refinance a primary residence. FHA loans cannot be used to facilitate the purchases of investment properties or second homes. Those types of properties typically need conventional loans.
What is the minimum credit score for an FHA loan?
You will need a credit score of 580 or higher for an FHA loan. However, if your score is above 700, a Conventional loan may provide you with more favorable terms.
How much can I borrow with an FHA loan?
FHA loans must adhere to specific loan limits set by the National Housing Act (NHA). The limits are calculated as a percentage of the conventional loan limits that are set by the Federal Housing Finance Agency (FHFA) each year. These limits are revised annually and vary based on the location of the property. Starting in 2025, you can borrow up to $524,225. In high-cost areas, the limits may be higher, allowing borrowers in those regions to secure larger loans while still benefiting from the flexibility that FHA loans offer.
What is the down payment requirement for an FHA loan?
Standard FHA loans require a 3.5% minimum down payment whether you are a first-time home buyer or you have previously owned a home.
FHA loans are flexible, however, and do allow for down payments to come in the form of grants or second mortgages. It is possible to get an FHA loan and use a grant or second mortgage to buy with $0 down payment.
Do FHA loans require Mortgage Insurance?
FHA loans require an Upfront Mortgage Insurance Premium and a monthly mortgage insurance premium (MIP). The Upfront Mortgage Insurance Premium is 1.75% of your base loan amount, which is financed and added to your base loan amount. The monthly mortgage insurance premium is included in your monthly payment. Unlike conventional loans, MIP is included in your monthly payment for the life of the loan whereas PMI on conventional loans is only paid until you reach 20% equity in your home.
What is the max Debt-to-Income Ratio (DTI) for an FHA loan?
Your debt-to-income ratio is the percentage of your gross income that goes towards your monthly debts, including a proposed new mortgage payment. FHA loans typically require that your monthly debts not exceed 50%, but with good credit, as high as 57% could be accepted.
What documentation do I need to provide for a FHA home loan?
FHA loans will require that you fully document your income and assets. Standard documentation requirements include recent paystubs, last two years of W2s, and the last two years of tax returns, if self-employed. You will also need to document all liquid assets used for down payment and closing costs.
What types of properties can be financed with FHA loans?
FHA loans can be used to finance single family residences, multi-family properties up to 4 units (if you plan to occupy one of the units as a primary residence), townhomes, FHA approved condominiums and manufactured homes that meet the requirements.
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