FHA Loans

What are FHA Loans?

FHA loans are mortgage loans insured by the Federal Housing Administration (FHA), designed to help homebuyers who may not qualify for conventional loans. These loans allow for lower down payments and more flexible credit requirements, making homeownership more accessible to first-time buyers and those with less-than-perfect credit.

Are FHA Loans Right for You?

FHA loans are ideal for first-time homebuyers, individuals with lower credit scores, or those who may not have a large down payment saved up. If you’ve struggled to qualify for a conventional loan or are looking for a more affordable path to homeownership, an FHA loan could be a great fit for you.

Take the First Step Towards Homeownership

Eligibility Requirements

To qualify for an FHA loan, you typically need to meet the following requirements:

Minimum Credit Score

Minimum credit score of 580 (or 500 with a higher down payment)

Down Payment

A down payment of at least 3.5% (with a 580 credit score or higher)

Debt-to-Income Ratio

Debt-to-income ratio should not exceed 43%

Stable Employment and Income

Steady employment history or consistent income

Primary Residence

Property must be your primary residence

Approved Appraisal

An FHA-approved appraisal of the property

FHA Loans

Numbers at a Glance

Here’s a quick overview of key numbers associated with this type of loans

Minimum Credit Score

580

Varies by lender

Down Payment

3.5%

Varies by loan type

Maximum DTI Ratio

43%

Varies by lender

Loan Term

15 or 30

Years to payoff the loan

Upfront Mortgage Insurance Premium (UFMIP)

1.75% of loan amount

Depending on lender requirements

Annual Mortgage Insurance Premium (MIP)

0.45% to 1.05%

Only if down payment is less than 20%. paid as (PMI)

Get advice from a loan expert

We offer a variety of loan programs designed to meet the needs of every homebuyer.

FHA Home Loan is perfect for you?

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Our team is here to support you with personalized guidance.

Benefits of FHA Loans

Low Down Payment

FHA loans typically require as little as 3.5% down, making it easier to get into a home without needing a large upfront payment.

Flexible Credit Requirements

Borrowers with credit scores as low as 580 can qualify for FHA loans, giving more people a chance to secure a mortgage.

Competitive Interest Rates

FHA loans offer competitive interest rates, which can help lower your monthly payments and save you money over the life of the loan.

Assumable Loans

FHA loans are assumable, meaning you can transfer the mortgage to a new buyer if you decide to sell your home, which can be an attractive feature for future buyers.

Not the Loan You're Looking for?

Check out other loan options

Ideal for borrowers with good credit, conventional loans offer competitive interest rates and flexible terms.

Available to veterans and active-duty service members, VA loans provide excellent terms with no down payment required.

Enjoy the security of a consistent interest rate and stable monthly payments for the life of your loan.

Designed for higher-priced homes, jumbo loans offer financing options above conventional loan limits.

ARMs start with a lower fixed interest rate for an initial period, then adjust periodically based on market conditions.

These government-backed loans are tailored for rural and suburban homebuyers, often with zero down payment.

Pay only the interest on your mortgage for a set period, ideal for buyers who expect an increase in income or future refinancing.

Allows homeowners 62+ to access home equity without monthly payments, repaid when the home is sold or vacated.

Combines purchase and renovation costs into one loan, perfect for buyers looking to fix up a property.

Flexible loans for borrowers who don’t meet standard lending criteria are ideal for those with irregular income.

You can always ask for advice from a mortgage loan expert.

Ready to start an application for a loan?

FHA Home Loans FAQ's

What is the minimum down payment for an FHA loan?

The minimum down payment for an FHA loan is typically 3.5% of the purchase price for borrowers with a credit score of 580 or higher.

Can I qualify for an FHA loan with bad credit?

Yes, FHA loans are designed to help borrowers with lower credit scores, with some lenders accepting scores as low as 500 if other criteria are met.

Do FHA loans require mortgage insurance?

Yes, FHA loans require both an upfront mortgage insurance premium (UFMIP) and annual mortgage insurance, which is typically included in your monthly payments.

Find Your Perfect FHA Loan

First Finance Lending will guide you with expert advice and personalized service to start your homeownership journey with the perfect loan program.