FHA Loans: Real Loans for Real Credit Scores.
Credit not perfect? You're not alone. FHA loans are designed for people with real financial histories.
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. It allows lower down payments and more flexible credit requirements than many conventional loans. It is popular with first-time buyers and those with less-than-perfect credit.
Who qualifies for an FHA loan?
You need a steady income, a valid Social Security number, and intent to live in the home as your primary residence. Credit and down payment requirements are more flexible than conventional loans. We can walk you through the exact requirements.
What credit score do I need for an FHA loan?
You can get 3.5% down with a 580+ score. With a score between 500 and 579 you may need 10% down. Some lenders set higher minimums. We shop 100+ lenders so we can often find a fit.
How much do I need for a down payment?
As low as 3.5% of the purchase price. So on a $300,000 home that is $10,500. Gifts from family are allowed for the down payment and closing costs in many cases.
What about mortgage insurance?
FHA loans have upfront and annual mortgage insurance (MIP). The upfront fee can be rolled into the loan. The annual premium is paid in monthly installments. We will show you the exact numbers so you can compare with other options.
FHA vs conventional: when does FHA make sense?
FHA makes sense when your credit is fair or your down payment is small. Conventional often has better rates and no lifetime MIP if you have strong credit and 5% or more down. We run both and show you the real difference.
FAQ
Can I refinance out of FHA later?
Yes. Once you have enough equity and credit, you can refinance to a conventional loan and drop mortgage insurance. We can tell you when it might make sense.