FHA Loans
FHA loans are insured by the Federal Housing Administration and built for buyers who may not have picture-perfect credit or a large down payment saved yet.
Who this may fit
- First-time buyers with limited savings for a down payment
- Buyers who are still building or rebuilding credit
- Buyers with higher debt-to-income ratios than conventional programs typically allow
Typical advantages
- Down payment minimums are typically lower than conventional
- More flexibility on credit history and past credit events in many cases
- Debt-to-income guidelines can be more forgiving than conventional
Potential drawbacks
- FHA requires mortgage insurance premium (MIP) — and unlike conventional PMI, it often stays for the life of the loan depending on your down payment
- There's an upfront mortgage insurance premium added to the loan
- Loan limits by county apply and can affect higher-priced homes
Qualification considerations
- Credit requirements are generally more flexible than conventional, though minimums still apply and vary by lender
- A steady, documentable income and employment history matters
- Property must meet FHA's minimum property standards
Down payment
FHA is known for allowing smaller down payments than conventional loans, which is a big part of why it's popular with first-time buyers.
Mortgage insurance
FHA loans include both an upfront mortgage insurance premium and an ongoing monthly premium. Depending on your down payment, that monthly premium may last for the life of the loan rather than dropping off automatically.
Property considerations
FHA loans are for primary residences only, and the property must meet FHA's condition and safety standards — which matters more for older homes.
When another program might make more sense
If your credit and savings are strong enough for conventional, it's worth comparing — the long-term cost of FHA's mortgage insurance can outweigh the lower down payment for some buyers.
Loan guidelines, limits, and mortgage insurance requirements change and vary by lender, credit profile, and property. Nothing on this page is an offer of credit or a guarantee of eligibility — it's a starting point for a real conversation about your specific situation.
FHA FAQ
Is FHA only for first-time buyers?
No — FHA is open to repeat buyers too, as long as it will be your primary residence and you meet program guidelines.
Does FHA mortgage insurance ever go away?
It depends on your down payment amount and when your loan originated. In many current scenarios it stays for the life of the loan — this is one of the biggest FHA vs. conventional comparisons worth having.
Can I use FHA with past credit issues?
FHA is generally more flexible here than conventional, but specifics depend on what happened and when. We can talk through your actual situation.
Want to know if FHA actually fits your numbers?
Let's look at your credit, cash, and income together and talk through real options.