As little as 3.5% down
Eligible borrowers may purchase with a down payment as low as 3.5%. The down payment and allowable closing funds may come from approved sources, including eligible gifts and assistance programs.
Loan Programs
FHA loans explained
FHA loans can make homeownership possible for buyers who need a smaller down payment or more flexible qualifying guidelines. They are especially popular with first-time buyers, but you do not have to be a first-time buyer to qualify.
Flexible credit guidelines
FHA financing can be more forgiving of past credit challenges than some conventional options. The full credit profile, payment history, score, and automated or manual underwriting result still matter.
Room for a higher DTI
FHA may allow a higher debt-to-income ratio when the overall file has strong compensating factors and receives an acceptable underwriting result. A higher allowed ratio does not mean the payment is automatically comfortable for your budget.
Know the mortgage insurance
FHA loans generally include an upfront mortgage insurance premium and an annual premium collected monthly. The best comparison includes the total payment, cash to close, and long-term cost, not only the interest rate.
Compare before you choose
FHA can be a great fit, but it is not automatically the best fit. I compare FHA, conventional, VA, and other eligible options to find the loan that supports your goals, payment, cash, and property.
Written by Marta Lillard
25+ years of mortgage experience, explained in plain English.
Mortgage Broker · First Coast Mortgage Funding · NMLS #879436 · Licensed in Florida and Georgia
Questions about your options?