Quick highlights
- Down payment as low as 3.5%
- Credit scores from 580 (sometimes lower)
- Gift funds allowed for the full down payment
- Flexible debt-to-income ratios
- Available for primary residences
- Up to 96.5% loan-to-value financing
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the FHA backs the loan, lenders can offer easier qualifying terms — lower down payments, lower credit score minimums, and more forgiving debt ratios — than conventional financing typically allows.
Who qualifies for an FHA loan?
Most U.S. residents looking to buy a primary residence can qualify. The key requirements: a credit score of 580+ (for 3.5% down), steady employment, and a debt-to-income ratio generally under 50%. Buyers with credit scores between 500-579 may qualify with 10% down.
What's the catch?
FHA loans require mortgage insurance (MIP) — both an upfront premium (1.75% of the loan) and a monthly premium for the life of the loan in most cases. For many buyers, this is a worthwhile tradeoff for the lower down payment and easier qualifying. We'll run the numbers to see if FHA or another program saves you more over time.
Ready to see what you qualify for?
Every situation is different. Let's talk through your specific scenario and shop it across our lender network for the best terms.