An FHA loan is a government-backed mortgage designed to make homeownership more affordable, especially for first-time buyers, those with lower credit scores, or limited down payment funds. Backed by the Federal Housing Administration, FHA loans offer flexible qualification guidelines and competitive interest rates, making them one of the most popular loan options in the U.S.
Low Down Payment – As little as 3.5% down for buyers with a credit score of 580 or higher.
Flexible Credit Requirements – Qualify with credit scores as low as 500 with 10% down
Competitive Rates – FHA loans often feature interest rates that are lower than conventional loans for similar borrowers.
Easier Approval – More forgiving on past credit issues, high debt-to-income ratios, or limited credit history.
Available for Many Property Types – Single-family homes, condos, and certain multi-unit properties are eligible.
FHA loans are ideal for:
First-time homebuyers who need a lower down payment.
Buyers with less-than-perfect credit.
People who have higher debt-to-income (DTI) ratios.
Borrowers who don’t qualify for conventional financing.
Buyers using gift funds for their down payment.
While FHA loans are easier to qualify for, there are still some basic requirements:
Minimum Down Payment – 3.5% with a credit score of 580+, or 10% with a score between 500–579.
Steady Employment – Proof of income and employment history for the past two years.
Debt-to-Income Ratio – Generally up to 46.99% housing and total 56.99%, depending on the lender.
Mortgage Insurance – FHA loans require both an upfront mortgage insurance premium (UFMIP) and monthly mortgage insurance premiums (MIP).
FHA loan limits vary by county and are based on local housing prices. In 2025, limits typically range from:
Single Family
$541,287 in low-cost areas
Up to $1,249,125 in high-cost areas
Multiple Units
$693,050+ in low-cost areas
Up to $1,599,375+ in high-cost areas
We shop your loan across multiple wholesale lenders to ensure you’re getting the lowest possible rate and fees. We’ll walk you through every step, from pre-approval to closing, so you understand your loan terms and know you’re making the best decision for your situation.
Pick My Mortgage Rate
Powered by
Loan Factory