Calculators Why HOM FAQ
Transaction types
Purchase RefinanceConventionalFHA — First-Time Home BuyerJumboNon-QM — Self-Employed / InvestmentVA — VeteransUSDA — RuralHELOCs Get started
Explore my options

An affordable path to your first front door.

FHA loans are government-insured mortgages designed to make homeownership more reachable — with down payments as low as 3.5% and more flexible credit guidelines for qualifying buyers. Your House of Mortgage advisor walks you through every step.

3.5%
Down options
580+
Credit scores considered
First-time
Buyer friendly
FHA
Lower down payment. Flexible credit.
3.5% down with a 580+ score
500–579 scores may qualify with 10% down
203(k) option to finance repairs
Streamline refinance later with reduced paperwork
The Basics

What is an FHA loan?

An FHA loan is a mortgage insured by the Federal Housing Administration and issued by FHA-approved private lenders. Because the government insurance protects the lender against default, FHA programs can offer lower down payments and more relaxed credit and debt-to-income standards than conventional mortgages — which makes them a strong fit for first-time buyers, borrowers building credit, or anyone with limited savings for a down payment.

  • Down payments as low as 3.5% for qualifying borrowers with credit scores of 580 or above
  • Credit scores between 500–579 may qualify with a 10% down payment
  • Upfront and annual mortgage insurance premiums required
  • Available for primary residences that meet FHA minimum property standards
Why FHA

Why buyers choose an FHA loan.

01

Lower upfront costs

A smaller down payment gets you into a home sooner while preserving cash for moving, maintenance, and an emergency reserve.

02

Flexible credit evaluation

FHA guidelines consider factors like rental payment history and employment consistency alongside your credit score.

03

Room for repairs

FHA 203(k) rehabilitation options can let qualifying buyers finance certain repairs and upgrades into the loan.

04

Streamlined refinancing later

Existing FHA borrowers may access a simplified refinance with reduced paperwork down the road.

Program Options

Types of FHA loans.

01

Standard FHA Purchase

The core program: buy a primary residence with a low down payment and flexible credit guidelines.

02

FHA 203(k) Rehabilitation

Finance the purchase and eligible repair or renovation costs together in a single loan.

03

FHA Streamline Refinance

A simplified refinance path for existing FHA borrowers, often with reduced documentation.

04

FHA Rate & Term Refinance

Refinance an existing loan into an FHA loan to change your rate or term.

05

Energy Efficient Mortgage (EEM)

Finance eligible energy-saving improvements as part of your FHA loan.

06

FHA Cash-Out Refinance

Access equity with an FHA-insured refinance, typically up to 80% loan-to-value.

Learn more →
Requirements

What it takes to qualify.

Credit score

Typically 580 or above for the 3.5% down payment option; scores of 500–579 may qualify with 10% down.

Down payment

As low as 3.5% for qualifying borrowers, depending on credit profile and program.

Debt-to-income (DTI)

Generally around 43% or lower, though FHA guidelines may allow more flexibility with strong compensating factors.

Income & employment

Stable, verifiable income — pay stubs, W-2s, and tax returns — with a consistent employment history.

Mortgage insurance (MIP)

An upfront premium plus an annual premium paid monthly. MIP generally cannot be canceled on newer FHA loans unless you refinance.

Property standards

The home must be your primary residence and meet FHA minimum property standards for safety and soundness.

How It Works

How to apply for an FHA loan.

01

Check your options

Share a few basics about your income, credit range, and goals. Soft credit pull only to start.

02

Get pre-approved

Upload your documents through our secure portal so we can verify your details and issue a pre-approval letter.

03

Shop & make offers

House-hunt with a clear budget. Your advisor helps you understand FHA appraisal and property requirements.

04

Underwriting

We review your full file and order the FHA appraisal, keeping you posted in your dashboard.

05

Lock & close

Lock your rate, sign digitally, and close with your team handling the details.

Good Questions

FHA loan FAQs.

How do I qualify for an FHA home loan?
You'll typically need a credit score of 580 or higher with 3.5% down (or 500–579 with 10% down), consistent employment, documented income, and a debt-to-income ratio near 43% or less — with some flexibility for strong compensating factors. FHA loans carry upfront and ongoing mortgage insurance premiums that add to your monthly payment. Requirements vary by individual scenario.
How many FHA loans can you have?
Generally one at a time, since FHA loans are meant for primary residences. Exceptions exist — for example, relocating for work beyond a reasonable commuting distance, or an increase in family size that your current home can't accommodate.
Can FHA mortgage insurance be removed?
For most FHA loans originated after 2013 with less than 10% down, annual MIP lasts for the life of the loan. The most common way to remove it is to refinance into a conventional loan once you have 20% equity and qualifying credit.
Can you buy a foreclosed home with an FHA loan?
Yes, as long as the property meets FHA minimum property standards at appraisal. Homes needing significant repairs may be a fit for the FHA 203(k) program, which finances the purchase and eligible renovations together.
Is an FHA loan better than a conventional loan?
It depends on your profile. FHA is often the better fit for lower credit scores or smaller down payments. Conventional loans can be cheaper over time for borrowers with strong credit and at least 5–20% down, because PMI can be cancelled and there is no upfront premium. Your advisor will compare both side by side.

See if an FHA loan fits your plans.

No hard credit pull to check your options, and no pressure. Just clear numbers and a team that specializes in first-time buyers.

Important rate & fee disclosures

FHA down payment options as low as 3.5% are available to qualifying borrowers with credit scores of 580 or above; scores of 500–579 may qualify with a 10% down payment. FHA loans require an upfront mortgage insurance premium and annual mortgage insurance premiums paid monthly, which increase your payment. FHA loans are for primary residences that meet FHA minimum property standards.

Rates, APRs, and terms vary by credit profile, loan-to-value, property type, and program guidelines and are not guaranteed. Not a commitment to lend.

House of Mortgage is not affiliated with, endorsed by, sponsored by, or acting on behalf of the Federal Housing Administration, HUD, or any other government agency.