FHA
Loans
FHA Purchase And Refinance Loan Requirements
FHA loans are available for people with credit scores of 580 or higher and down payments as low as 3.5%. This makes FHA loans more accessible than other mortgages.
Who FHA Loans Are Best For
This loan is a great option for people whose credit scores are 580 and higher and who have a 3.5% down payment. Read more about other benefits below.
How FHA Loans Work
These loans are insured by the Federal Housing Administration (FHA).
The FHA protects lenders against defaults on payments. This makes it easier for you to qualify and allows lenders to offer lower interest rates.
What You’ll Need To Qualify For An FHA Loan
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A minimum 3.5% down payment.
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A minimum FICO® Score of 620 with Max 57% DTI with AUS Approval.
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A minimum FICO® Score of 580 with Max 50% DTI.
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2 years of steady employment history.
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Upfront mortgage insurance premiums usually 1.75% and may be financed in the loan amount.
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Money to close can come from a gift (from a relative.)
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Seller contribution up to 6% not to exceed actual closing costs and pre-paids.
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Money to cover closing costs, could be anywhere from 2% – 6% of the purchase price.
FHA Loan Benefits
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Credit score requirements are lower compared to other loans.
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You could still qualify for an FHA loan if you’ve had a bankruptcy or other financial issues in the past.
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They’re available with fixed or adjustable rates and for 30-year or 15-year terms.
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They have low down payment requirements. You can put down as little as 3.5%.
Refinancing with an FHA loan has some great benefits, too:
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Full credit qualiyfing refinance with appraisal you may roll in closing costs. Max cash back not to exceed $500.00. Max LTV up to 97%.
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If you’ve already got an FHA loan, you can refinance with an FHA Streamline. Less documentation is required for this option, and no appraisal is needed. The FHA Streamline is a good option if you’re not looking to take cash out.
FHA Property Requirements
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Your loan can’t exceed the loan amount limits in your area. The FHA's limit for lower-cost areas is set at $524,225 in 2025. In high-cost areas, the limit for 2025 is $1,209,750. Look up the loan limits in your area.
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The home must meet the FHA’s minimum property standards for safety, security, and structural integrity.
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When buying a home, you’ll need to move in within 60 days of closing.
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It must be your primary residence. Investment properties and second homes don’t qualify for FHA loans.
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