FHA Loans
Government-backed mortgages with low down payments and flexible credit guidelines. Perfect for first-time homebuyers and those with less-than-perfect credit.
FHA Loan Guidelines
Loan Parameters
- Min Loan Amount$5,000
- Max Loan AmountVaries by county (up to $1,149,825 in high-cost areas)
- Loan Terms15 or 30 year fixed
- ARM OptionsLimited, primarily fixed-rate
- Max LTV (Purchase)96.5% (3.5% down)
- Max LTV (Cash-Out)80%
Borrower Requirements
- Min Credit Score580 (3.5% down) / 500 (10% down)
- Min Down Payment3.5%
- Debt-to-Income RatioUp to 50% with compensating factors
- Employment History2+ years
- Reserves Required1+ months (depending on credit)
Property Requirements
- Property TypesSFR, Condo, Townhome, 2-4 Unit
- OccupancyPrimary residence only
- Appraisal RequiredYes (FHA-specific appraisal)
- MIP RequiredYes (upfront + annual)
Why Choose an FHA Loan?
Low Down Payment
Only 3.5% down required – much lower than conventional loans.
Flexible Credit
Credit scores as low as 580 accepted (500 with 10% down).
Gift Funds Allowed
Down payment can come from family gifts or grants.
Assumable Loans
FHA loans can be assumed by a future buyer, a unique advantage.