Home Loans Designed to Make Homeownership Accessible
Home Loans Designed
to Make Homeownership Accessible
WHAT IS AN FHA LOAN?
An FHA loan is insured by the Federal Housing Administration and designed to help borrowers who may not qualify for conventional financing.
FHA loans lower lender risk, allowing more flexible credit and down payment requirements.
WHY BORROWERS CHOOSE FHA
Down payments as low as 3.5%
Credit scores starting around 580
Gift funds allowed
Seller contributions permitted
QUALIFICATION REQUIREMENTS
- Primary residence only
- Mortgage insurance required
- Credit score: 580+ (or higher down payment)
- Stable income and employment
HOW FHA LOANS WORK
Upfront Mortgage Insurance Premium (UFMIP)
Usually 1.75% of the loan amount, can be financed into the loan.
Annual Mortgage Insurance
Paid monthly as part of your mortgage payment.
These protect lenders and allow broader access.
WHO FHA IS BEST FOR
First-time buyers
Credit-rebuilding borrowers
Buyers with limited savings
PROS & CONSIDERATIONS
Pros
- ✔ Easier qualification
- ✔ Lower down payment
Considerations
- ⚠ Mortgage insurance lasts longer
- ⚠ Property condition requirements
FAQ — FHA LOANS
Full depth answers provided for each below
Yes, both upfront and monthly premiums are required regardless of the down payment amount.
Yes, options like the FHA Streamline Refinance make it easy to lower your rate with minimal documentation.
No, anyone who meets the qualification requirements can use an FHA loan for their primary residence.
Generally, a 580 is required for the 3.5% down payment option, though some lenders may allow lower with 10% down.
Yes, 100% of your down payment and closing costs can come from documented gift funds.
Absolutely. Many borrowers refinance into a conventional loan once they reach 20% equity to eliminate PMI.
