Why Our team loves FHA loans
FHA Loans are a government-backed mortgage option insured by the Federal Housing Administration (FHA), designed to make homeownership more accessible, especially for first-time homebuyers or individuals with less-than-perfect credit. They have flexible guidelines, lower down payment requirements, and competitive interest rates, making them a great option for buyers who may not qualify for conventional financing.
FHA Loans At A Glance
FHA loans are great if you need more flexibility on credit score or down payment requirements. They make homeownership more accessible for people who may not qualify for a conventional program.
Highlights
- Low Down Payment: Put as little as 3.5% down with a qualifying credit score.
- Flexible Credit Requirements: More lenient credit standards than many other loan types.
- Use It Your Way: Great for purchases and rate/term refinances.
- Assumable: Your FHA loan may be transferred to a qualified buyer in the future.
- Government-Backed: Designed to help more buyers qualify for homeownership.
Pros of FHA Loans
- Lower Down Payment Requirements: Buy with as little as 3.5% down.
- Flexible Credit Standards: You don’t need a perfect credit score.
- Competitive Interest Rates: Similar to—sometimes better than—conventional rates.
- Down Payment Gifts & Assistance Accepted: Not all of the down payment has to come from your personal savings.
- Assumable Loans Have a Future Advantage: If interest rates are higher in the future, a qualified buyer could take over your existing lower-rate loan—a big incentive.
FHA Loan Guidelines
- Loan limits: Vary; updated annually by HUD.
- Mortgage insurance: Required upfront and yearly.
- Property Types: Primary residences only; single-family homes, condos, and certain multi-units.
- Employment: Stable employment history or consistent income for past two years.
Best for…
First-time homebuyers
Buyers with less-than-perfect credit
Households with limited savings
Buyers using down payment assistance
Multigenerational or dual-income households
Questions? We'll Answer.
Let's answer the questions you're definitely not the first (or the last) to ask.
A credit score of 580 is needed for a 3.5% down payment. If your score is between 500–579, you’ll need a 10% down payment.
No, there are no specific income limits for FHA loans. However, you must show you can afford the mortgage payments based on your income and debts.
No. FHA loans are only for primary residences that you plan to live in.
Yes, FHA loans require mortgage insurance. You’ll pay an upfront premium of 1.75% and annual mortgage insurance ranging from 0.45% to 1.05% of the loan amount.
Yes, through the FHA Streamline Refinance program which offers simplified documentation and underwriting.
FHA loan limits vary by county and are updated annually. Check HUD’s website for your area’s cap or contact us to schedule a free consultation.
Free Guides & Resources
Our favorite kind of buyer? A confident one. Brush up on your loan knowledge, get an accurate quote, and let's get to it.
