Goverment Backed Mortgage:
The FHA insures the loan, which reduces risk for lenders. Because of this, lenders can offer more flexible qualification standards than conventional loans.
Credit Score:
Minimum 580 to qualify for a 3.5% down payment
Scores 500–579 may still qualify with a 10% down payment
Down Payment:
As low as 3.5%, which is often lower than what conventional loans require for many borrowers.
Debt-to-Income Ratio (DTI):
More lenient; many lenders allow DTIs up to ~50%, though exact limits vary.
Property Requirements:
The home must meet FHA safety and habitability standards, verified through a special FHA appraisal.
Occupancy Requirement:
Must be your primary residence (no vacation or investment properties).
FHA loans require two types of mortgage insurance:
Upfront Mortgage Insurance Premium (UFMIP):
Typically 1.75% of the loan amount
Can be rolled into the loan
Annual Mortgage Insurance Premium (MIP):
Paid monthly
Usually lasts for the life of the loan unless you refinance into a non-FHA product
Rate varies based on loan terms and down payment
Lower credit score requirements
Smaller down payments
More flexible DTI guidelines
Helpful for first-time and moderate-income buyers
Allows gift funds for down payment and closing costs
Mortgage insurance is required and often lasts for the life of the loan
Loan limits vary by county and may be lower than conventional jumbo limits
Stricter property condition standards can limit home choices
Must be used only for primary residence purchases
Whether you’re buying your first home or upgrading to your next chapter, I’m here to guide you every step of the way.
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