Loan Programs
FHA Home Loans
Government-insured financing built for buyers whose down payment or credit is not where conventional wants it yet. A genuinely useful tool, with one long-term cost you should understand before signing.
Why This One
What FHA Gives You
Low down payment
As little as 3.5 percent down on a qualifying purchase.
Credit flexibility
Scores as low as 580 may qualify at the 3.5 percent tier, and shorter waiting periods after past credit events than conventional allows.
Built for first-time buyers
The program was designed for people who have not done this before, and gift funds are broadly permitted.
Range of property types
Single-family homes, approved condos, and other qualifying properties.
The Basics
What FHA Asks For
- Minimum credit score of 580 for the 3.5 percent down payment tier
- Scores between 500 and 579 may still qualify with 10 percent down
- Steady employment history, typically two years
- Property must be your primary residence
- Debt-to-income ratio limits apply
- Mortgage insurance premium is required
The Honest Part
Where FHA Costs You
The mortgage insurance is the real cost, and it is the thing that gets glossed over. On most FHA loans written today, the annual premium stays for the life of the loan instead of dropping off once you hit twenty percent equity. Over a long hold that can add up to more than you saved by putting less down.
If you plan to be in the house fifteen years and you could qualify conventional with five percent down, conventional is very often cheaper even at a slightly higher rate.
The property also has to meet FHA condition standards, which complicates offers on older homes and fixers. And in a competitive market some sellers still read an FHA offer as weaker, fairly or not.
None of that makes FHA wrong. It makes it a tool with a specific job. If it fits today, use it, and plan the exit at the same time.
FAQ
Frequently Asked Questions
Run FHA and Conventional Side by Side
We will show you both, including total cost over the number of years you actually plan to stay. Sometimes FHA wins. You should see the math either way.