Affordable paths to homeownership — even with limited savings or lower credit.
What Is an FHA Loan?
An FHA loan is a government-insured mortgage backed by the Federal Housing Administration. It’s designed to make homeownership more accessible for buyers who may not qualify for Conventional Loans, or who need more flexible credit and down-payment options.
Because FHA loans are government-backed, lenders can offer:
- Lower minimum credit scores
- Smaller down payments
- More flexible debt-to-income guidelines
This makes FHA an excellent choice for first-time homebuyers, credit rebuilders, and buyers needing a more affordable entry point.
Key Benefits of FHA Financing
- Low Down Payment: Put as little as 3.5% down with a credit score of 580+
- Flexible Credit Guidelines: Qualify with lower scores or limited credit history
- Higher DTI Allowed: Easier approval even with existing auto/student loans
- Competitive Fixed Rates: Predictable monthly payments
- Assumable Loans: Future buyers can take over your FHA loan and its rate
- Refinance Options: FHA Streamline refinance allows for minimal documentation
⭐ See If You Qualify for an FHA Loan
Low down payment. Flexible credit. Designed for first-time buyers.
👉 Get Pre-Qualified in Minutes »
(No hard credit pull)
Who Qualifies for an FHA Loan?
FHA loans are ideal for:
- First-time buyers saving for their starter home
- Borrowers rebuilding credit after past issues
- Buyers with smaller down payments
- Homeowners looking to refinance into a better rate or term
Basic FHA Requirements
- Two years of stable income (W-2, 1099, or self-employed)
- 580 credit score for 3.5% down (500–579 requires 10% down)
- Debt-to-Income (DTI) typically under 57%
- Home must be a primary residence
If you don’t meet FHA requirements, you may still qualify for alternatives like Down Payment Assistance or flexible Non-QM loan programs.
Understanding FHA Mortgage Insurance (MIP)
FHA loans include Mortgage Insurance Premiums that protect the lender.
Upfront MIP
- 1.75% of the loan amount
- Often financed into the loan
Annual MIP
- Added to monthly payments
- Amount depends on loan size and term
Many buyers use FHA to purchase early, then later refinance into a Conventional Loan to remove mortgage insurance.
FHA Loan Example
| Description | Amount |
|---|---|
| Purchase Price | $300,000 |
| Down Payment (3.5%) | $10,500 |
| Loan Amount | $289,500 |
| Approx. Payment (PITI + MIP) | ~$1,850/mo |
For illustration only. Your exact payment depends on rates, taxes, and insurance.
To estimate your exact payment, use our Payment & Amortization Calculator.
FHA vs. Conventional Loans
| Feature | FHA Loan | Conventional Loan |
|---|---|---|
| Down Payment | 3.5% | 3%–20% |
| Credit Flexibility | More lenient | Stricter |
| Mortgage Insurance | Required | Removed at 20% equity |
| Best For | First-time buyers, credit rebuilders | Strong credit, higher down payments |
If you’re choosing between the two, read our full Conventional Loan Guide for a detailed breakdown.
Why Work With AskMortgageAuthority.com
We simplify the FHA loan process with clear guidance and helpful tools.
You’ll know:
- How much home you can afford
- What documents you need
- How FHA compares to other loan options
- Your estimated payments and costs
- Whether FHA, Conventional, VA, or Down Payment Assistance is the best fit
We combine personal guidance with digital tools to help you move forward confidently.
Take the First Step Toward Homeownership
An FHA loan could help you buy a home sooner than you expect.
We’ll guide you from pre-qualification to closing.
👉 Get Pre-Qualified for an FHA Loan »
See how much home you can afford today.
FHA Loan FAQs
What credit score do I need for an FHA loan?
Most lenders require at least 580 for 3.5% down. Scores from 500–579 may qualify with a 10% down payment.
How much is the FHA down payment?
A minimum of 3.5% if your credit score is 580+. That’s why FHA is ideal for first-time buyers.
Does FHA require mortgage insurance?
Yes. FHA loans include upfront MIP and a monthly premium. Many borrowers later refinance into a Conventional Loan to remove it.
Can FHA loans be used with Down Payment Assistance?
Yes — FHA combines well with many state and local down-payment assistance programs.
Are FHA loans only for first-time buyers?
No. Anyone can use an FHA loan, but first-time buyers benefit most from FHA’s flexible guidelines.