FHA mortgage: Frequently asked questions

An FHA loan could be an affordable option for homebuyers who may not be able to qualify for other types of loans.

If you are looking for alternatives to a conventional loan with more flexible requirements, an FHA loan might be an option you could consider.

These are a few frequently asked questions borrowers have before they apply for an FHA loan online.

FHA loans are government-backed mortgages insured through the Federal Housing Administration. These loans are offered to help potential homeowners who might not meet the requirements for conventional loans afford a home.

FHA loans are able to offer more flexible qualifications because they are insured by the government. These loans are issued by lenders, so you will have to work with them if you are looking to get an FHA loan when buying or refinancing a single- or multifamily home.

FHA loans can help low- to moderate-income borrowers, as well as others, afford a home. Compared to conventional loans, borrowers can qualify for an FHA loan with a lower credit score, shorter credit history and smaller down payment options.

Most lenders issue FHA loans as fixed-rate mortgages with term lengths options up to 30 years. Some lenders offer FHA loans as adjustable-rate mortgages as well.

One thing to note, your FHA loan might come with a mortgage insurance premium (MIP). Your upfront and annual MIP is a percentage of your loan amount and can last for the life of your loan if you choose a smaller down payment option.

If you are able to meet the requirements for a down payment option with at least 10%, your MIP will be removed after the 11-year mark on your mortgage. If you are looking to remove your MIP, you can consider refinancing your FHA loan.

Because FHA loans are guaranteed by the government, they come with less risk than conventional loans, which are not. Since FHA loans come with less risk, they can be more flexible when it comes to requirements. Mortgage rates for an FHA loan can be slightly different from conventional loan rates.

If you are having trouble meeting the credit score, down payment, debt-to-income ratio or credit history requirements for a conventional loan, you may want to talk to your lender about an FHA loan.

FHA loans have more flexible requirements compared to other loans, but what are they exactly? Here are a few requirements:

• FICO credit score as low as 500, depending on the down payment option you choose.

• Down payment options as low as 3.5%.

• A debt-to-income ratio as high as 55%.

• Mortgage premium insurance (MIP) is required for part or for the life of your loan.

• Steady employment and proof of income will be asked for during your loan application.

• An FHA appraisal may be required to ensure the home is up to standards and determine the property’s value.

The exact requirements for an FHA loan can slightly vary depending on the lender you choose.

While the credit score required for an FHA is generally lower than for conventional loans, the exact credit score you need for an FHA loan will depend on the down payment option you decide on.

For a down payment option of 3.5%, lenders look for a FICO score of at least 580. If you cannot meet that credit score, the FHA does have a down payment option of 10% for borrowers with a credit score as low as 500.

Of course, these down payment options will require MIP.

Because FHA loans are backed by the U.S. Department of Housing and Urban Development (HUD), homes purchased with an FHA loan needs to meet the minimum property requirements set by HUD.

Properties have to go through an FHA appraisal before being approved for an FHA loan. These appraisals ensure that the property is not worth less than the loan amount and ensure that it meets HUD’s minimum property standards.

The minimum property standards set by HUD ensure that the home is structurally sound, secure and without any health concerns.

While FHA loans are available for first-time and repeat homebuyers, they are available only for primary residences.

The FHA puts limits on the amount you can borrow. The limit is based on the average home price per county and number of units in the property.

The FHA releases new limits every year, and here are just a few of the limits as of 2026.

In low-cost areas, FHA loan limits vary from $541,287 for single-unit homes to $1,041,125 for four-unit homes. In higher-cost areas, these limits vary from $1,249,125 for single-unit homes to $2,402,625 for four-unit homes.

Even though these are the limits of various areas, it does not mean borrowers will automatically qualify for the full amount.

If are looking to get an FHA loan to purchase a home, you can apply online.

Applying online can tell you how much you could qualify for with an FHA loan and connect you with a professional Loan Officer who can help answer questions you may have. Loan Officers can also walk you through the process of receiving an FHA loan, including guiding you through an FHA appraisal.

To get started on your FHA loan and connect with a Loan Officer, begin your online application today!

_{Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Restrictions may apply.}

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