Loan programs

FHA Loans

An FHA loan is a mortgage insured by the Federal Housing Administration. FHA loans are great for buyers who need a lower down payment, more flexible credit requirements, or help getting approved.

Why People Choose an FHA Loan

Easier to qualify.
FHA loans are designed for buyers who may not have perfect credit or big savings.

  • Low down payment (as little as 3.5%)
  • Flexible credit guidelines
  • Higher debt ratios allowed
  • Gift funds allowed for all or part of the down payment
  • Competitive interest rates
Down Payment

Most FHA buyers put 3.5% down.

Good to know:

  • Minimum 3.5% down with a 580+ credit score
  • 500–579 scores may qualify with 10% down
  • Down payment can be 100% gifted from an eligible donor
  • Approved down payment assistance programs are also allowed
Mortgage Insurance (MIP)

FHA loans require two types of mortgage insurance:

  • Upfront MIP – usually financed into the loan
  • Monthly MIP – added to your payment

Important:

  • If you put less than 10% down, MIP stays for the life of the loan
  • If you put 10% down or more, MIP lasts 11 years

Many buyers refinance into a Conventional loan later to remove mortgage insurance.

Credit & Income Requirements

FHA is more forgiving than Conventional loans.

Most buyers qualify with:

  • 580+ score for minimum down payment
  • Steady job/income history
  • A manageable debt-to-income ratio
  • A property that meets basic FHA safety standards

FHA allows higher debts and lower credit scores than other loan types.

Property Requirements

FHA appraisals look for:

  • Safety
  • Soundness
  • Basic livability

Most homes pass with no issues.
Fixer-uppers or distressed homes may require repairs first.

FHA vs Conventional

FHA may be better if you:

  • Have lower credit
  • Need a small down payment
  • Want easier qualifying
  • Prefer more flexible approval limits

Conventional may be better if you:

  • Have 620+ credit
  • Want mortgage insurance that eventually drops off
  • Plan to buy in a higher-priced area

I’ll show you both side by side so you can choose what’s best.

Streamline Refinance

Already have an FHA loan?
You may qualify for an FHA Streamline with:

  • No appraisal in some cases
  • Minimal paperwork
  • Fast process
  • Potentially lower payments