FHA Loans
An FHA loan is a mortgage insured by the Federal Housing Administration. It requires 3.5% down with a credit score of 580 or higher, or 10% down with scores of 500–579. For 2026, FHA limits range from $541,287 in standard counties to $1,249,125 in high-cost areas. Upfront and monthly mortgage insurance premiums apply.
Government-backed mortgages with flexible credit requirements and low down payments — designed to make homeownership accessible for first-time buyers and those rebuilding credit.
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government backs the loan, lenders can offer more flexible qualification standards — making it one of the most accessible mortgage programs available.
FHA loans are especially popular with first-time homebuyers, borrowers with credit scores below 680, and those who have limited funds for a down payment. With just 3.5% down and credit scores as low as 580, FHA opens doors that conventional lending sometimes closes.
The trade-off is mortgage insurance: FHA loans require both an upfront MIP (mortgage insurance premium) and an annual MIP paid monthly. For many borrowers, this is a worthwhile cost to get into a home sooner.
FHA Loan Benefits
- Down payment as low as 3.5% with 580+ credit score
- Credit scores as low as 500 with 10% down
- Seller can contribute up to 6% toward closing costs
- Gift funds allowed for the entire down payment
- More flexible debt-to-income ratios than conventional
- Available for purchase and refinance transactions
FHA Loan Limits (2026)
- Standard areas: up to $541,287
- High-cost areas: up to $1,249,125
- Alaska, Hawaii, Guam: higher limits apply
- Limits vary by county — ask us about your area
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$350K
Home Price
3.5%
Down Payment
~$1,850
Est. Payment
FHA Qualification Guidelines
Credit Requirements
- 580+ credit score: 3.5% down payment
- 500–579 credit score: 10% down payment
- No minimum credit score with manual underwriting (case-by-case)
- Recent bankruptcies and foreclosures considered
- Collections and late payments reviewed holistically
Income & Employment
- 2-year employment history preferred
- W-2, self-employed, and part-time income accepted
- Social Security, disability, and pension income eligible
- DTI up to 43% standard; higher with compensating factors
- Co-borrowers can be added to strengthen qualification
Property Guidelines
- Primary residence only (no investment properties)
- Must meet FHA minimum property standards
- FHA appraisal required
- Single-family, 2–4 units, approved condos eligible
- Manufactured homes may qualify with conditions
See If You Qualify for an FHA Loan
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