Loan program · Core
FHA Loans
FHA loans are insured by the Federal Housing Administration and designed to expand access to homeownership. They are frequently used by first time buyers and by borrowers whose credit or debt ratios do not fit conventional guidelines, and they are limited to primary residences.
Guidance by Manny
Who it is designed for
- First time buyers with limited down payment funds
- Buyers rebuilding credit or with a shorter credit history
- Buyers whose debt to income ratio is higher than conventional guidelines allow
- Buyers purchasing a 2 to 4 unit property they will live in
Eligible occupancy types
- Primary residence only
Down payment or equity
3.5% minimum down payment for qualifying credit profiles. Gift funds from eligible sources are widely permitted.
Major benefits
- Flexible credit guidelines compared with conventional financing
- Gift funds may cover the down payment for eligible borrowers
- Allows 2 to 4 unit purchases when you occupy one unit
- FHA 203(k) renovation financing is available for homes needing work
Important considerations
- FHA charges an upfront mortgage insurance premium plus an annual premium
- On most current FHA loans the annual premium remains for the life of the loan unless you refinance
- County loan limits apply
- The appraisal includes minimum property standards, so deferred maintenance can matter
How qualification generally works
- Credit is reviewed with FHA specific guidelines and any lender overlays
- Steady, documentable income and an acceptable debt to income ratio
- Funds to close verified through statements or documented gift
- FHA appraisal meeting minimum property requirements
Documents commonly requested
- Photo ID and Social Security number for each borrower
- Most recent pay stubs covering a full 30 day period, if you receive W2 wages
- W2s and/or federal tax returns for the most recent years requested
- Two months of asset statements for accounts used for down payment and reserves
- Current mortgage statement, homeowners insurance and property tax information on properties you own
- Explanations for large or non payroll deposits
Not sure this is the right mortgage?
Tell Manny what you're trying to accomplish. He can help you compare this program with other financing options that may fit your situation — your income and how it is documented, your credit and assets, the property and how you will use it, your timeline, and the guidelines that apply. Most borrowers have more than one workable path.
Frequently Asked Questions
Related programs and next steps
Conventional Loans
The most widely used financing for primary homes, second homes and rentals.
Learn more Construction & RenovationFHA 203(k) Renovation Loans
FHA financing that includes repair and improvement costs in the mortgage.
Learn more CoreVA Loans
A benefit earned through service, with no required down payment for eligible buyers.
Learn more CoreUSDA Loans
Rural development financing with no down payment in eligible areas.
Learn moreConsidering fha loans?
We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.