FHA Loans
Government-backed financing designed to make homeownership accessible to a broader range of borrowers.
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD). Because the loan is government-insured, lenders take on less risk — which allows them to offer financing to borrowers who might not qualify for conventional loans.
FHA loans are originated by private lenders (banks, credit unions, mortgage companies) and must meet FHA guidelines to qualify for the insurance. The FHA does not lend money directly — it insures the loan, which protects the lender if the borrower defaults.
Key Features of FHA Loans
Down payment requirements
FHA loans are known for their lower minimum down payment requirements compared to many conventional loan programs. The specific minimum depends on your credit score and current FHA guidelines.
Credit flexibility
FHA loans may be available to borrowers with a wider range of credit profiles than conventional loans typically allow. However, credit score requirements still apply and affect your eligibility and terms.
Mortgage insurance
FHA loans require both an upfront mortgage insurance premium (MIP) and an annual MIP paid monthly. Unlike private mortgage insurance (PMI) on conventional loans, FHA MIP may remain for the life of the loan depending on your down payment and loan term.
Property requirements
FHA loans are for primary residences only — they cannot be used for second homes or investment properties. The property must also meet FHA minimum property standards.
Loan limits
FHA loans are subject to loan limits that vary by county. These limits are set annually by HUD and reflect local housing market conditions.
Important Notes
This overview is for general educational purposes only. FHA loan requirements, limits, and guidelines are subject to change. Actual eligibility and terms depend on your individual circumstances and current program guidelines. All loans subject to credit approval.
Want to explore whether an FHA loan fits your situation?
Let's talk through your financial picture and goals. I can help you understand whether an FHA loan — or another program — may be the right fit.