FHA Purchase Loan
Most PopularBest For: First Time Homebuyers, Low Credit Scores, Lowest Rates, Easy Qualification
Low down payment requirements, easier qualification guidelines, lower rates, and flexible terms for first time homebuyers and beyond.
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
$472,030
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.
San Antonio HIP 120 Existing Home
|FHA PurchaseSan Antonio first time homebuyers of an existing home can receive up to $15,000 in down payment and closing cost assistance within the city limits.
Max. Loan Amount
$472,030
Min. Credit Score
580
Min. Down Payment:
0%
San Antonio HIP 120 New Construction
|FHA PurchaseSan Antonio new construction first time homebuyers can receive up to $15,000 in down payment and closing cost assistance within the city limits.
Max. Loan Amount
$472,030
Min. Credit Score
580
Min. Down Payment:
0%
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.
FHA Rate-and-Term Refinance
Best For: Rate Reduction, Low Credit Scores, Easy Process
Reduce your interest rate, change your terms, or lower your mortgage insurance obligation with limited home equity and an easier process.
FHA High-Balance Purchase Loan
Best For: Large Loan Amounts, Easy Qualification
FHA financing option for purchasing a home above the government limit in designated high cost counties across the United States.
Related Resources
FHA Purchase: The Bottom Line
Considering going FHA? Here’s the bottom line on the FHA Loan – What it is, how to get one, why should you get one, along with its most notable products, common criteria and an expert analysis from our experienced team.
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2023 Down Payment Assistance Guide
Unless you're related to a dragon or leprechaun with a hoard of gold stashed away somewhere, chances are you are like one of the other 87% of homebuyers who need to finance their home purchase.
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First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
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This is for Single-Income Homebuyers
The housing market is always changing, and today single-income homebuyers are quickly becoming one of the largest demographics to take part. While getting approved for a loan may take a bit more work for single applicants than those who are coupled or have dual incomes, it is certainly an attainable goal and often one that proves to be more affordable in the long run. Let's go over some of the things you'll want to prepare for as you begin your solo home buying journey.
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A Rundown On Closing Costs and How They Affect You
It can be tricky to sift through all the figures , so we broke down what they are, how much they cost, who's responsible and how to minimize your expenses.
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High Balance FHA Loans Explained
Explore high balance FHA loans: low down payment, relaxed credit guidelines, and higher loan limits in high-cost areas. Ideal for first-time homebuyers.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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