FHA Loans

An FHA loan is a mortgage insured by the Federal Housing Administration and made by approved lenders. The insurance lets lenders accept lower credit scores and more flexible credit histories than most conventional loans, with a low down payment.

Justin Lazzaro, NMLS #1229453 | Reasy Financial, LLC, NMLS #2446155 | Licensed in Arizona, Pennsylvania, Florida, and Texas

Who an FHA loan fits

FHA financing is built for buyers who are ready to own a home but do not fit the conventional box yet.

First-time and returning buyers

Flexible credit guidelines and a low required down payment make FHA a common starting point.

Buyers rebuilding credit

FHA allows shorter waiting periods after a bankruptcy or foreclosure than conventional loans do, with documented recovery.

Who it usually does not fit

With strong credit and a larger down payment, a conventional loan usually costs less over time because its mortgage insurance can come off.

How qualifying works

1

We document income and assets

Pay stubs, W-2s, tax returns where needed, and statements for your down payment funds. Gift funds from family are allowed.

2

The file is scored and reviewed

FHA files run through an automated scorecard. Files that need a closer look can be manually underwritten with compensating factors.

3

An FHA appraisal is completed

The appraiser confirms value and checks that the home meets FHA minimum property standards for safety and soundness.

FHA loan limits are set by county each year. I am a mortgage broker, not a government agency, and FHA does not lend money directly.

How it compares to other loans

The main differences between these loans are who backs them and how the mortgage insurance works.

How FHA loans compare to other loan types
Loan typeWho backs itMortgage insurance
FHA loansInsured by the Federal Housing AdministrationUpfront and monthly premiums, often for the life of the loan
Conventional loansPrivate lenders, following Fannie Mae or Freddie Mac guidelinesOnly with a smaller down payment, and it can usually be removed
VA loansGuaranteed by the Department of Veterans AffairsNone, though most borrowers pay a one-time funding fee
USDA loansGuaranteed by the U.S. Department of AgricultureAn upfront guarantee fee and an annual fee

Three things to know before you apply

1

Mortgage insurance stays longer

FHA charges an upfront premium and a monthly premium. With a small down payment, the monthly premium typically lasts for the life of the loan unless you refinance.

2

The home has to qualify too

The FHA appraisal checks safety and soundness. Issues like peeling paint on an older home or roof problems usually have to be repaired before closing.

3

It must be your primary home

FHA financing is for a home you will live in. You can buy a property with up to four units if you occupy one of them.

Guidelines change. I confirm current requirements with the lender before quoting anything.

Common questions about FHA loans

Short answers to common questions. Program rules vary by lender, so treat these as general guidance, not a loan decision.

Is FHA only for first-time buyers?

No. Repeat buyers can use FHA too, as long as the home will be their primary residence.

Can I use gift funds?

Yes. FHA allows the down payment to come from an eligible family member or other approved donor, documented with a gift letter.

Can I buy a fixer-upper?

Yes, with the FHA 203(k) renovation loan, which combines the purchase and the repairs into one mortgage.

Can I remove the mortgage insurance?

Usually by refinancing into a conventional loan once your credit and equity support it. I can review that with you down the road.

Can I refinance with FHA?

Yes. FHA offers a streamline refinance for existing FHA loans, plus standard rate and term and cash-out options.

Where do you offer these loans?

I am licensed in Arizona, Pennsylvania, Florida, and Texas, and I compare FHA pricing across multiple wholesale lenders.

Ready to talk it through?

Pick a time that works for you. We'll go over your goals and next steps, no pressure, just a conversation. Prefer to call or text instead? Reach me directly at (412) 638-4982, or book a quick Zoom if that's easier.