An FHA loan is a government-insured mortgage backed by the Federal Housing Administration (FHA), designed to make homeownership more accessible. It offers lower credit score and down payment requirements than conventional loans.

You typically need a minimum credit score of 500, but those with a score of 580 or higher can qualify with just 3.5% down. Borrowers with scores between 500–579 usually must make a 10% down payment.

For most FHA loans, it's 3.5% down if your credit score is 580+, or 10% if your score is between 500–579.

Yes — FHA loans require two types of insurance:

• Upfront Mortgage Insurance Premium (UFMIP): 1.75% of the loan amount (often financed into the loan).

• Annual Mortgage Insurance Premium (MIP): ranges from 0.45% to over 1%, depending on loan term and LTV.

Note: Unlike conventional mortgage insurance, FHA’s MIP cannot be canceled once 20% equity is reached.

Yes! FHA offers a " Streamline Refinance" option that allows you to refinance with minimal documentation, no appraisal, and potential savings, especially if you already have an FHA loan.

FHA loans can be used for:

• Single-family homes

• Condos, townhomes, and manufactured homes

• Multi-unit properties (up to 4 units) if you occupy one unit They must meet FHA's safety and livability standards.

Yes — FHA loans can be assumed by a new buyer, allowing them to take over your existing mortgage terms. This is especially valuable in a rising-rate environment.

Basic FHA loan qualifications include:

• 3.5% down payment (or 10% down if credit <580)

• Minimum credit score of 500

• Debt-to-Income (DTI) ratio typically under 43%, though it can go higher with strong compensating factors

• Occupying the home as your primary residence

• Property must meet FHA standards through appraisal

Absolutely! FHA loans are especially well-suited for first-time buyers because they're easier to qualify for, require lower down payments, and offer flexible credit guidelines.

Yes — FHA allows the entire down payment to come from gift funds, whether from a family member, employer, or approved assistance program.