Program Description
FHA loans are insured by the Federal Housing Administration, allowing your mortgage lender to provide you with a better deal than you might find with other loans. These loans are especially beneficial for first time home buyers and others with less-than-perfect credit scores or little money for a downpayment because of its flexible qualification guidelines.
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FHA Purchase Loan
Min. Credit Score
580
Min. Down Payment
3.5%
Max Loan Amount
$498,257 - $776,550
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- Allows for higher debt-to-income (DTI) ratios
- Lower down payment requirement than standard conventional loans
- No first time homebuyer requirement
- Mortgage Insurance (MIP) is required for the life of the loan
- The FHA appraisal process can be more rigorous and demanding than a conventional appraisal
Program Availability
FHA Purchase Loans are available in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
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“This program is great for first time homebuyers, and super flexible for different property types and borrower profiles."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
50.00%
Purchase Price Limit
No Limits
Income Limit
No Limits
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Down payments as low as 3.5% when purchasing a home
- Allows for credit scores as low as 580 (can vary by lender)
- Flexible options for condominiums and manufactured housing
Additional Conditions
- FHA qualification guidelines can vary by lender to lender (see info on Lender Overlays). This page represents the minimum qualification guidelines as established by the Federal Housing Administration (FHA)
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class is not required for this loan program.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
Required On All FHA Loans
Type: Annual Mortgage Insurance Premium (MIP)This FHA program requires the Annual Mortgage Insurance Premium (MIP) regardless of the amount of your down payment or home equity.
Type: FHA UFMIP
The FHA Up Front Mortgage Insurance Premium (UFMIP) is a one-time fee equal to 1.75% of your loan amount. This fee can either be paid at closing or financed into your loan amount.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Grants, Bonds & 2nd Mortgages
There are certain programs that can be combined with this FHA Purchase program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
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