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Loan program
FHA loans
Government-insured mortgages designed to make homeownership accessible, especially for first-time and credit-rebuilding buyers. Ask about down payment assistance programs that pair with FHA.
The Federal Housing Administration was established in 1934 to improve housing standards and provide an adequate home financing system through mortgage insurance. FHA itself doesn't make loans; it insures them, paying the lender from the insurance fund if a borrower defaults. That insurance lets lenders be more flexible on credit and down payment than conventional financing, in exchange for an upfront mortgage insurance premium and ongoing monthly mortgage insurance.
NMLS #98185
Hundreds of lender partners
Who it's for
- First-time buyers and credit-rebuilding buyers
- Borrowers with limited down payment savings
- Buyers using gift funds for closing
- Buyers pairing FHA with down payment assistance programs
- Multi-generational households using a non-occupant co-borrower
- Borrowers with a past bankruptcy who have rebuilt credit
Eligibility, rates, fees, and program features depend on credit, property, and lender. Examples here are illustrative only and are not approvals, preapprovals, or commitments to lend.
Key benefits
Why borrowers choose this program
- Down payments as low as 3.5%
- More forgiving credit guidelines than conventional
- Gift-funds friendly
- Stacks well with down payment assistance (DPA) programs
- More lenient debt-to-income ratios, typically up to 41% total
- Assumable in some cases
Eligibility
What we'll look at
- Credit score, payment history, and debt-to-income (housing typically ≤ 29% of gross monthly income; total ≤ 41%)
- Property must meet FHA appraisal standards
- FHA loan limits by county apply
- Primary residence occupancy (typically required)
- Upfront and monthly mortgage insurance must fit the payment
- Two years past discharge of a Chapter 7 bankruptcy (or one year of repayment on a Chapter 13, with court approval), with re-established credit
Documents
Commonly needed if you proceed
- Personal tax returns, W-2s/1099s, and recent pay stubs
- Business returns and a year-to-date P&L for self-employed borrowers, if applicable
- Bank, retirement, 401(k), mutual fund, money market, and stock statements
- Recent bills and statements with account numbers and minimum payments
- Driver's license, Social Security card, gift letter, and proof of gift funds when applicable
- Bankruptcy, discharge, or court approval papers when applicable
Documents are collected later in the lender portal. None are uploaded through this page.
Scenarios
Common scenarios
- First-time buyer at 3.5% down
- Buyer with mid-600s credit who doesn't price well on conventional
- Borrower using a parent as a non-occupant co-borrower
- Buyer planning to refinance to conventional once credit improves
- Buyer combining FHA with state or local DPA
- Borrower 2+ years past a Chapter 7 with rebuilt credit
How it compares
Versus other programs
| Compared to | Bottom line |
|---|---|
| Conventional | FHA is more credit-forgiving and requires a lower down payment; conventional usually wins on long-run cost when credit is strong because PMI can drop off at 20% equity. FHA mortgage insurance generally lasts the life of the loan with the minimum down payment. |
| VA | VA beats FHA when you qualify (no monthly MI, 0% down). FHA fills the gap for non-veterans with limited cash and/or rebuilding credit. |
| USDA / state DPA | FHA pairs very well with state and local down payment assistance programs; we'll check what's available for your area and income. |
Frequently asked
FHA loans FAQ
With minimum down payments, FHA mortgage insurance generally lasts the life of the loan. Many borrowers refinance to conventional once they reach roughly 20% equity to drop MI.
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