Why FHA Loans Are Popular

• Low down payment – Just 3.5% down with a 580+ credit score

• Lenient credit guidelines – Qualify even with past credit issues

• Higher DTI allowed – Debt-to-income ratios up to 57% may be accepted

• Down payment assistance accepted – Use grants, gifts, or programs

• Seller can pay closing costs – Up to 6% of the home’s price

• Multi-unit options – Buy up to a 4-unit property and use rental income to help qualify

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FHA Loan Types We Offer

1. FHA Purchase Loan

Ideal for first-time or repeat buyers with limited savings or lower credit scores.

Highlights:

• 3.5% down payment with 580+ credit

• 1–4 unit properties, FHA-approved condos, and eligible manufactured homes

• Must be your primary residence

• Competitive interest rates

• Flexible guidelines for first-time homebuyers

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2. FHA 203(k) Renovation Loan

Buy or refinance a home and finance repairs or improvements in one mortgage.

Use this loan to:

• Purchase a fixer-upper and include renovation costs

• Refinance your current home and roll in repair expenses

• Choose between the Limited 203(k) (up to $35,000 in repairs) or the Standard 203(k) (for major renovations)

🔧 Learn more about FHA 203(k) loans

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3. FHA Refinance Options

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FHA vs. Conventional Loans

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FHA Appraisals: What to Expect

Unlike conventional loans, FHA appraisals focus on both value and safety. If the home doesn’t meet HUD’s Minimum Property Standards, repairs may be required before closing.

Common FHA-required repairs include:

• Chipped or peeling paint

• Broken handrails or missing stairs

• Leaky roof or active water damage

• Exposed wiring or missing smoke detectors

• Inoperable plumbing, heating, or electrical systems

Conventional appraisals are usually less strict, and minor cosmetic issues are less likely to hold up closing.

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What You Need to Qualify

• Credit score: 580+ for 3.5% down, or 500–579 with 10% down

• Debt-to-income ratio: Up to 57% with strong compensating factors

• Income: Stable income with W-2s, tax returns, or other documentation

• Down payment & closing funds: Can come from personal savings, gifts, or approved assistance

• Occupancy: Must live in the home as your primary residence

• Loan limits: Check your FHA loan limit here

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FHA Mortgage Insurance

FHA loans include two types of required mortgage insurance:

1. Upfront Mortgage Insurance Premium (UFMIP)

• 1.75% of the base loan amount

• Can be rolled into the loan

2. Annual Mortgage Insurance Premium (MIP)

• Added to your monthly mortgage payment

• Typically lasts for the life of the loan (unless you put down 10% or more)

• Rate depends on loan size, term, and down payment — generally 0.15% to 0.75%

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Final Thoughts

If you’re buying your first home, renovating a property, or refinancing for a better rate or cash out, FHA loans offer flexibility, affordability, and low entry barriers. They’re especially helpful for buyers with limited savings or credit history.

Have questions or ready to get started? Let’s explore your FHA options together.