Buy a Home With
3.5% Down and
Flexible Credit
FHA loans are backed by the federal government, which means lenders can offer lower down payments, more forgiving credit requirements, and better access to homeownership for more people.
What Is an FHA Loan?
An FHA loan is a mortgage backed by the Federal Housing Administration, a government agency under the U.S. Department of Housing and Urban Development. Because the government insures the loan, lenders take on less risk and can offer more flexible terms to borrowers.
That means lower down payments, more forgiving credit requirements, and higher debt-to-income ratios than most conventional loans allow. It is one of the most popular loan programs in the country, especially for first-time buyers.
As a mortgage broker, we do not just offer one FHA lender. We shop across multiple lenders to find you the best rate and terms for your situation.
Get My Free FHA Quote →What Makes FHA Loans So Accessible
FHA loans were created to help more people become homeowners. Here is why so many buyers choose them.
Low Down Payment
Put as little as 3.5% down with a 580+ credit score. On a $250,000 home that is just $8,750 — far less than most conventional requirements.
Flexible Credit Score
FHA accepts scores starting at 580. Scores between 500 and 579 may still qualify with 10% down. We work with borrowers across all credit ranges.
Gift Funds Allowed
Your entire down payment can come from a gift from a family member, employer, or approved nonprofit. You do not have to use your own savings.
Higher Debt-to-Income
FHA allows DTI ratios up to 57% with compensating factors. Conventional loans are usually capped lower, making FHA more accessible for many buyers.
FHA 203k for Fixer-Uppers
The FHA 203k renovation loan lets you finance the purchase and repairs in one loan. Great for buying a home that needs work without taking out a second loan.
Streamline Refinance
Already have an FHA loan? The FHA Streamline Refinance lets you lower your rate with less paperwork and no appraisal required in most cases.
FHA Loan Requirements
These are general guidelines. Your exact situation may allow more flexibility. Get a quote and we will tell you exactly where you stand.
Check My Eligibility →From Application to Keys in 4 Steps
Most borrowers get pre-approved within 1-3 business days and close in 30-45 days once under contract.
Get Pre-Approved
Fill out our quick quote form. We review your situation and issue your pre-approval letter usually within 1-3 business days.
Find Your Home
Shop with confidence knowing exactly how much you can spend. Your letter makes offers stronger and shows sellers you are serious.
Underwriting and Appraisal
Once under contract we order the FHA appraisal and submit to underwriting. We handle the back-and-forth so you do not have to stress.
Close and Move In
Sign your final documents, transfer funds, and collect your keys. Our team is with you every step through closing day and beyond.
FHA vs. Other Loan Programs
Not sure if FHA is right for you? Here is how it stacks up against conventional, VA, and USDA on the factors that matter most.
| Feature | FHA Loan | Conventional | VA Loan | USDA Loan |
|---|---|---|---|---|
| Min. Down Payment | 3.5% | 3-5% | 0% | 0% |
| Min. Credit Score | 580 | 620+ | No set minimum | 640+ |
| Mortgage Insurance | Life of loan if <10% down | Cancels at 20% equity | ✓ None | Required (lower cost) |
| Gift Funds OK | ✓ 100% allowed | Partial | ✓ Allowed | ✓ Allowed |
| Max DTI | 57% | 45-50% | 41%+ flexible | 41-44% |
| Occupancy | Primary only | Any | Primary only | Rural primary only |
| Who Qualifies | Any borrower | Any borrower | Veterans only | Income limits apply |
| Renovation Option | ✓ FHA 203k | ✓ HomeStyle | ✓ VA Reno | Limited |
FHA Loan Pros and Cons
No loan is perfect for everyone. Here is a straight look at where FHA shines and where it falls short.
✓ Pros
- 3.5% down with a 580+ credit score
- Accepts credit scores as low as 580 — or 500 with 10% down
- Gift funds can cover your entire down payment
- Higher debt-to-income limits than most conventional loans
- Competitive rates because the loan is government-backed
- Available for single-family, 2-4 unit, FHA-approved condos, and manufactured homes
- FHA 203k lets you finance purchase and repairs in one loan
- Streamline refinance makes lowering your rate easy later
✗ Cons
- Mortgage insurance stays for the life of the loan if you put less than 10% down
- Upfront MIP of 1.75% adds to your total loan cost
- Property must be your primary residence — no rentals or investment use
- Homes must pass FHA appraisal, which can be stricter than conventional
- Loan limits cap the maximum purchase price by county
- Condos must appear on the FHA-approved condo list
- Not the best fit if you have 20%+ down and excellent credit
What Our Borrowers Say
We have helped hundreds of families get into homes using FHA loans. Here is what some of them had to say.
FHA Loan FAQ
Still have questions? We have answered the most common ones below. Or just call us and we will walk through your specific situation.
Get My Free FHA Quote →Ready to See If You
Qualify for an FHA Loan?
Get your free quote in minutes. No credit pull, no pressure — just honest answers from a team that knows FHA loans inside and out.