FHA Loan
An FHA (Federal Housing Administration) Loan is a mortgage that’s insured by the federal government and offered through FHA-approved lenders.
FHA Loans have more flexible credit score requirements and have higher debt to income limits making it an easier loan for many first time homebuyers to qualify for. You can finance an FHA Loan with a down payment as low as 3.5%*, making it an affordable mortgage option for millions of home buyers, especially first-time home buyers.
FHA Loans can only be used to finance a primary residence. FHA Loans require a mortgage insurance premium (MIP), in the form of an upfront payment and ongoing monthly payments, similar to private mortgage insurance for conventional loans.
Who can benefit from an FHA loan?
- Borrowers with lower or no credit scores who can’t qualify for conventional loans.
- Clients with higher debt to income ratios who can’t qualify for a conventional loan.
- Someone who wants to buy multifamily homes and owner occupy one unit with low down payment.
Loan Program Details
- 5% minimum down payment requirement
- Upfront Mortgage Insurance premium financed into the loan
- Condominiums are FHA Single Unit Spot Approvals
- No income limits
- Seller concessions up to 6% of sales price
- Gifts allowed
For single-family home loans this year, the FHA loan limits range from a floor of $498,257 to a ceiling of $1,149,835. More expensive areas outside the continental U.S. have even higher FHA loan limits.
To help you find the limit for any county or state, HUD has an online search tool to help you find FHA loan limits.
We’ve made applying for an FHA Loan easy. To start your loan application and get preapproved click here, to find a local loan officer click here.
