866-719-1424

The Benefits of Home FHA Loans

FHA Loans are a game-changer for first-time home buyers.

Low Down Payment

FHA loans offer buyers down payment requirements as low as 3.5% on their home mortgage.

You Don’t Need Perfect Credit

Have a credit score of 580 with a 3.5% down payment or a score as low as 500 with a 10% down payment minimum on your home.

Flexible Co-Signer Options

With an FHA loan, co-signers are not required to live in the home, giving home buyers more housing flexibility.

Various Down Payment Sources

Down payment sources like a gift or grant make FHA loans appeal to a broader group of home buyers.

I want to…

Explore FHA Loans

If you’re ready to learn more about FHA loans, you’re in the right place! FHA loans are a flexible financing option for first-time and repeat home buyers. Explore our resources and start finding answers to your questions about FHA home loans.

Video Placeholder (1)

All FHA Home Loan Resources

General

FHA loans accept down payments as low as 3.5%. There’s also flexibility in the source of the mortgage down payment, allowing greater mortgage and payment flexibility. FHA allows higher qualifying debt to income ratios, co-signers that do not have to live in the home, seller assistance towards buyer closing costs, and more. You can work with your loan officer to determine the source of your mortgage and how it will impact your FHA loan rate. 

No, FHA loans can be used by repeat buyers. If you are buying a home for a second time, you are still eligible for mortgage FHA loans, mortgage insurance, and other FHA loan benefits.

Conventional loans and FHA loans differ in a variety of ways including interest rates, mortgage insurance, credit score requirements, down payment requirements, etc. We have a great comparison guide that digs into the details here. The guide shows how FHA loans compare to conventional loans and will help you determine which loan is best for building your home equity. 

The major differences between FHA and VA loans include eligibility, down payment requirements, and mortgage insurance requirements. Get an in-depth comparison of the VA and FHA loan programs here.

FHA loans allow the seller to give a “gift of equity” to cover the down payment for a buyer. This typically happens in scenarios where the seller is a friend, business associate, or family member of the buyer and wants to help a buyer with their mortgage, down payment, and building equity. The flexibility of the down payment is one way that Federal Housing Administration loans are different than loans from other lenders.

You can use gifted funds to initiate buying your home and to cover the cost of a down payment on an FHA loan. Learn more about FHA gift fund guidelines here.

FHA loan limits determine the maximum amount of money that you can borrow using an FHA loan. The loan limits and rates update each year. Learn the current FHA loan limits and more here. 

Yes, you can refinance your home with an FHA loan. When you refinance your home, you can often lower your interest rates and your monthly housing payment. Learn more about FHA refinance options here. Discover the pros and cons of an FHA streamline refinance. 

Yes, you can refinance an FHA loan into a conventional loan. Learn more about this process here.

The FHA streamline refinance program is designed to help current FHA borrowers refinance with ease. It doesn't require extensive income verification or underwriting. The need for an appraisal is also eliminated. Learn more about the FHA streamline refinance program.

Costs & Fees

Down payment assistance can be used to cover your down payment or closing costs with an FHA loan. 

Yes, 3.5% is the minimum down payment. You can always have a higher mortgage down payment with an FHA loan. Having a higher mortgage down payment can decrease your monthly payment or help you pay off your home mortgage faster.

FHA closing costs are the standard expenses every buyer pays to cover the cost of taking out an FHA loan.
Closing costs will cover things like your home inspection, appraisal, title insurance, taxes, and more. Every transaction is different, but your closing costs will generally land between 2-6% of the purchase price.

 

No, the program does not allow you to pay your own property taxes and insurance on an FHA loan. Housing insurance and taxes will need to be paid through other methods. You can check out how you can pay your own taxes and insurance here.

Yes, while FHA loans do not require private mortgage insurance (PMI), you will have an insurance mortgage premium charged by FHA (aka, FHA mortgage insurance). The insurance cost is paid at closing.

Yes, PMI can be removed from FHA loans. Learn more about PMI removal strategies here.

Yes, the maximum seller-paid closing costs involving an FHA loan is 6% of the sales price. Learn more about seller-paid closing costs here.

Qualifications & Rules

Start by filling out a Quickstart loan application. From there, one of our FHA loan experts or lenders reviews your application and will walk you through the loan process step by step. The lenders will determine the loan amount you qualify for and help you get the loans you need to purchase a home.

FHA loans are for buyers that plan to live in their home as their primary residence. To protect the program, the Federal Housing Administration has two major occupancy requirements for buyers to meet. If you purchase a home with an FHA loan you must establish residency in your new home within 60 days, and plan to live in the home for the majority of the calendar year.

 

No, There is no minimum or maximum when it comes to FHA income limits. We explain this, and what is required to qualify for an FHA loan here.

We share the specifics on FHA appraisal requirements in this blog post

The short answer is yes, you can have two loans at the same time. But there are rules and guidelines you will need to know in order to work with the lenders to get two FHA loans simultaneously. 

Yes, the FHA counts student loans. Learn the ins and outs of FHA guidelines for student loans here

Yes, you can build a house with an FHA loan. You can tackle a build with an FHA loan in two ways. You can purchase a newly built home from a builder with traditional FHA financing or use an FHA construction-to-permanent loan. Learn more about financing a new build with an FHA loan.

Yes, but specific FHA guidelines must be followed when you get a loan to finance a flipped house. 

Yes, manufactured homes can be financed with an FHA loan. FHA offers a specific loan product for this home type. Learn more. 

No, FHA requires that the buyer use the home as their primary housing. You can not use FHA loans for urban development, retirement, or other investment properties. 

Not technically, FHA loans are typically for primary residences only. However, there are special exceptions to this loan policy. Read about those here.

Yes, monthly rental income can be used to qualify for an FHA loan if the amount is enough to meet the minimum requirements. Learn more about FHA rental income guidelines here.

Yes, and the co-borrower does not have to live in the home with you. Learn more about non-occupant co-borrowers here

Generally, the FHA foreclosure waiting period is three years. After the foreclosure period, you can be eligible for FHA loans.

FHA requires that at least three years have passed from the date of the short sale through the FHA case file number. Although, it is possible to get loans and buy in less than three years. Learn more here

The FHA bankruptcy waiting period is much shorter than you may think! Learn more here. 

FHA loans have above-average flexibility on credit score, but there are still certain minimum score standards that you have to meet to get a loan. Read more here. If you have had difficulty getting loans in the past due to a low credit score from credit cards or other factors, FHA loans could be a good option for you. If your credit isn't perfect, we can help put together a plan to raise your score!

While many home loan programs require collections to be paid off before getting approved for loans, FHA is pretty lenient when it comes to collections. It is still possible to qualify for a loan.

Get familiar with the FHA loan program and how it applies in the sunshine state. Find out more about getting an FHA loan in Florida.

Rates

Get a Free First Time Home Buyer Guide

Fill out the information below to receive your free E-book.

Topics covered include:

  • Saving for a Down Payment
  • Get a Mortgage/Pre-Approval
  • Researching Loan Programs
  • Loan Process Steps
  • Loan Process Do’s and Don’ts

Apply for FHA Home Loans in 15 Minutes

Get your mortgage using our online application tool, QuickStart. See how it works below.

1. Create an Account

Choose your username and password to begin your QuickStart application.

2. Fill Out Application

Tell us about yourself and your financial situation so we can find loan options.

3. Review & Submit

Double-check the information you’ve entered and make any edits before you submit your application.

4. Upload Documents

Submit documents to help us verify your application. We may request follow-up items as we review your application.

1. Create an Account

Choose your username and password to begin your QuickStart loan application.

2. Fill Out Application

Tell us about yourself, your credit score, and your financial situation so we can find loan options.

3. Review & Submit

Double-check the information you’ve entered and make any edits before you submit your application.

4. Upload Documents

Submit documents to help us verify your application. We may request follow-up items as we review your application.

Talk to a Loan Officer

Get a personalized plan or ask any questions to our dedicated loan officers.