FHA Loan
Accessible financing for first-time and lower-down-payment buyers.
A government-insured mortgage offering low down payments and flexible credit thresholds, ideal for first-time buyers.
What is a FHA loan?
FHA loans are insured by the Federal Housing Administration and issued by approved lenders. They allow low down payments and flexible qualification, making homeownership accessible to a broader range of borrowers.
Designed for
First-time buyers, buyers rebuilding credit, and buyers with a lower down payment.
Why choose it
FHA offers accessible qualification when a conventional loan may be out of reach.
Common use cases
- ◆First-time homebuyers
- ◆Buyers with limited down-payment savings
- ◆Borrowers with flexible credit profiles
- ◆Multi-generational buyers using non-occupant co-borrowers
Built for borrowers who look like this.
First-time buyers
Low down payments and flexible qualification.
Credit rebuilders
Guidelines accommodate a wider credit range.
Multi-generational families
Non-occupant co-borrowers permitted.
Modest-income households
Emphasis on housing accessibility.
The advantages.
Low down payment
Often as low as 3.5% for qualified borrowers.
Flexible credit
Wider credit tolerance than many conventional loans.
Assumable
Future buyers can potentially assume the mortgage.
Gift funds accepted
The entire down payment can often come from gifts.
Things to weigh.
Mortgage insurance
Upfront and monthly MIP applies; often for the life of the loan.
Property standards
The home must meet FHA safety and habitability standards.
Loan limits
County-specific FHA limits apply.
Occupancy required
FHA loans are for primary residences only.
What lenders generally look for.
Requirements vary based on lender guidelines and borrower qualifications. The below is educational — not a commitment or offer of credit.
- Down payment
- 3.5% for qualified borrowers
- Credit expectations
- Wider tolerance than conventional; varies by lender
- Occupancy
- Owner-occupied only
- Property standards
- Must meet FHA safety and habitability guidelines
Answers to what borrowers ask most.
What is the FHA minimum down payment?
As low as 3.5% for qualified borrowers.
Do I need to be a first-time buyer?
No. Any qualified borrower can use FHA financing.
Is FHA available for investment properties?
No, FHA is for primary residences only.
What is MIP?
Mortgage Insurance Premium — required on FHA loans, both upfront and monthly.
Can I refinance my FHA loan?
Yes, into another FHA loan (streamline) or a conventional loan.
Can gift funds cover the down payment?
Yes, entirely, from eligible donors.
Are condos eligible?
Yes, if the project is FHA-approved.
Does the home need to pass inspection?
The appraisal includes basic safety and habitability checks.
Is there an income limit?
No, FHA does not have income caps.
Can I have a co-signer?
Yes, both occupant and non-occupant co-borrowers are allowed.
Complete FHA Loan Guide
The full playbook on FHA financing for first-time buyers.
Run the numbers.
Educate yourself.
Complementary programs worth exploring.
Conventional
A traditional mortgage backed by Fannie Mae or Freddie Mac guidelines, offering competitive rates and flexible terms.
Explore Conventional loan requirementsVA
Zero-down financing backed by the Department of Veterans Affairs for eligible service members, veterans, and surviving spouses.
Explore VA loan requirementsUSDA
Government-backed financing with no down payment required for eligible properties in qualifying areas.
Explore USDA loan requirementsHome Equity
A lump-sum, fixed-rate loan secured by your home's equity, with predictable monthly payments.
Explore Home Equity loan requirementsAsk about FHA.
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