Purchase Loans

FHA Loans

FHA loans are insured by the Federal Housing Administration and are designed to make homeownership more accessible. With lower credit score thresholds and smaller down payment requirements than most conventional options, FHA loans are especially popular among first-time buyers.

3.5%minimum down payment with 580+ credit

580+credit score for standard eligibility

MIPmortgage insurance required for the loan term

Primaryresidence requirement

FHA Loans Options

FHA Fixed-Rate Purchase

Buy a home with as little as 3.5% down
Fixed interest rate for the full loan term
Available in 15- and 30-year terms

Great for

First-time homebuyers with limited savings
Borrowers with credit scores between 580 and 680

FHA Adjustable-Rate (ARM)

Lower initial rate with an adjustment period after the fixed window
Rate caps provide protection against large payment increases
Same low down payment requirements as FHA fixed-rate loans

Great for

Buyers who expect to move or refinance within a few years
Borrowers looking for lower initial monthly payments

FHA Streamline Refinance

Refinance an existing FHA loan with reduced documentation
No appraisal required in many cases
Designed to lower your rate or switch from an ARM to a fixed rate

Great for

Current FHA borrowers looking to reduce their monthly payment
Homeowners who want a faster, simpler refinance process

How FHA Loans Work

FHA loans require an upfront mortgage insurance premium (UFMIP) at closing, plus an annual premium spread across your monthly payments.

Down payments can come from savings, gift funds from family, or eligible down payment assistance programs.

FHA loans have maximum loan limits that vary by county — these are updated annually based on local home prices.

FHA Loans FAQ

Can I qualify for an FHA loan with a low credit score?

FHA loans are available to borrowers with credit scores as low as 580 for the standard 3.5% down payment option. Scores between 500 and 579 may still qualify with a 10% down payment, depending on the lender.

What is mortgage insurance on an FHA loan?

FHA loans require two types of mortgage insurance: an upfront premium (UFMIP) of 1.75% of the loan amount paid at closing, and an annual premium (MIP) included in your monthly payment. For most FHA loans with the minimum down payment, MIP lasts for the life of the loan.

Can I use gift funds for my FHA down payment?

Yes. FHA guidelines allow your entire down payment to come from gift funds provided by a family member, employer, or other approved source. A gift letter documenting the funds is typically required.

Are FHA loans only for first-time homebuyers?

No. While FHA loans are popular with first-time buyers due to their flexible requirements, they're available to any borrower purchasing a primary residence — whether it's your first home or your fifth.