We’re proud to be a trusted FHA lender
Buying a home is one of the biggest decisions you’ll ever make, and coming up with a large down payment shouldn’t be what holds you back. FHA loans are backed by the Federal Housing Administration (FHA), and are designed to make homeownership more affordable and more accessible. With a lower down payment requirement and flexible credit standards, FHA loans open the door to homeownership for more families.
Highlights & Benefits
Why an FHA loan might be right for you
Get started with as little as 3.5% down, far less than most conventional loans require. Down payment funds can come from gifts or grants from family, employers, or homebuyer assistance programs.
FHA loans look at the full picture, not just your credit score. Your job history, income, and debt-to-income ratio all matter. Even if your credit is lower or you’ve had financial setbacks in the past, you may still qualify.
FHA loans typically offer rates similar to fixed-rate and adjustable-rate conventional loans, so you get affordability without sacrificing value.
The ongoing monthly mortgage insurance premiums (MIP) on FHA loans are often cheaper than private mortgage insurance (PMI) on a conventional loan.
FHA loans can be used to buy single-family homes, multi-unit properties, condos, and manufactured homes in cities, suburbs, or rural areas.
The FHA 203(k) program lets you roll the cost of buying and renovating into one loan, which is a great fit if you’ve found a home with good bones that just needs some love.
If rates rise in the future, an FHA loan can be assumed by a future buyer, a feature that can make your home easier to sell down the road.
Questions people ask about FHA loans
Yes, all FHA loans require two types of mortgage insurance. The first is an upfront mortgage insurance premium (UFMIP) paid at closing, which can be rolled into your loan so you don't have to pay it out of pocket. The second is a monthly mortgage insurance premium (MIP) added to your payment each month. This insurance protects the lender, which is what allows FHA loans to offer more flexible terms to more borrowers. In many cases, the monthly MIP is still cheaper than private mortgage insurance on a conventional loan.
Have more questions about costs? Our FAQ pages are a great place to start.
FHA loans are more flexible than conventional loans when it comes to credit. There's no single cutoff, and lenders look at more than just your score. Your job history, income, and overall financial picture all factor in. Even if you've had credit challenges or financial setbacks in the past, you may still be eligible. Your loan officer can walk you through what to expect based on your specific situation.
As little as 3.5% of the purchase price. That's significantly less than most conventional loans require. Your down payment can also come from gifts or grants from family members, employers, or homebuyer assistance programs, so you may not need to come up with all of it on your own.
FHA loans cover a wide range of property types, including single-family homes, multi-unit properties, condos, and manufactured homes. They work in cities, suburbs, and rural areas alike. If you're interested in buying a home that needs work, the FHA 203(k) program lets you roll the purchase price and renovation costs into one loan.
It depends on your situation. FHA loans tend to be a strong fit if you have limited savings for a down payment, a lower credit score, or you're buying for the first time.
That said, they're not the right answer for everyone. Here's a quick way to think about other options:
- Veterans and active-duty service members may qualify for a VA loan, often with no down payment required.
- Buyers in rural or suburban areas should look into a USDA loan, which also offers zero-down options.
- Buyers with strong credit and savings may find that a conventional fixed-rate mortgage saves money on insurance costs over time.
Not sure where you fall? That's what we're here for.
Yes, and this is one of the most valuable things to know. If you're buying in our region, you may be able to pair your FHA loan with a state or local assistance program to lower your upfront costs. First Heritage Mortgage participates in several state homebuyer programs.
Ask your loan officer whether you qualify. Stacking programs can make a meaningful difference in what you pay upfront.
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Get in touch with our team of FHA loan experts to learn more about the loan option that’s best for you.
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