Federal Housing Authority (FHA) Loans

FHA Loan Limits

FHA loans come with loan amount limits that vary by county and property type. These limits are designed to make homeownership accessible while ensuring responsible lending.


Down Payment & Credit Score Requirements


  • Minimum Down Payment:
  • 3.5% for borrowers with a credit score of 580 or higher
  • 10% for borrowers with a credit score between 500–579
  • Minimum Credit Score:
  • 500
  • (though individual lender requirements may vary)


Mortgage Insurance


  • When Required: FHA loans require both an Upfront Mortgage Insurance Premium (UFMIP) and an Annual Mortgage Insurance Premium (MIP) regardless of down payment size.
  • Duration: MIP is required for the life of the loan if the down payment is less than 10%. With a down payment of 10% or more, MIP can be removed after 11 years.


Unique Features of FHA Loans


  • Lenient Credit & Income Guidelines: FHA loans are ideal for first-time homebuyers and those with less-than-perfect credit.
  • Gift Funds: Borrowers can use gifted funds for the entire down payment and closing costs, provided proper documentation is provided.
  • Rehabilitation Options: The FHA 203(k) loan allows buyers to finance both the purchase and renovation of a property.


Property Types Allowed


  • Primary Residences Only: FHA loans are limited to owner-occupied properties.
  • Manufactured Homes: Eligible with specific property and foundation requirements.
  • Condominiums: Must be on the FHA-approved condo list for eligibility.


Assumability



  • Assumable Loans: FHA loans are assumable, allowing a buyer to take over the existing mortgage terms—a valuable option when interest rates rise.


Contact Us for FHA Loan Guidance

Our team can guide you through the FHA loan process, whether you’re a first-time homebuyer or looking to refinance. We’re here to help you secure the best loan solution for your needs.