FHA Loans

Federal Housing Administration Loan

fha loan

An FHA loan is insured by the Federal Housing Administration, which means if a borrower defaults, the FHA covers the lender’s loss. That government backing allows lenders to offer more flexible qualifying terms and lower down payments than most conventional loans.


FHA loans are a popular choice for first-time buyers, buyers with limited savings, or buyers who have had past credit challenges. The minimum down payment is just 3.5% for borrowers with a credit score of 580 or higher. Borrowers with scores between 500 and 579 may still qualify with a 10% down payment.


Who Can Get an FHA Loan?

FHA loans have no income limits, but there are county-by-county limits on how much you can borrow. Loan limits are set each year by HUD based on median home prices in each area. To qualify, you will need a reasonable debt-to-income ratio and a steady employment history. Unlike conventional loans, FHA guidelines are designed to give more buyers a path to homeownership.


  • 3.5% down payment for borrowers with a 580+ credit score

  • Gift funds can cover the entire down payment and closing costs

  • Can qualify 2 years after a bankruptcy discharge

  • Can qualify 3 years after a foreclosure

  • No prepayment penalty

  • Home improvement financing available through the FHA 203(k) program

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