FHA Loans
A lower down payment and more flexible credit requirements make FHA a common starting point for first-time buyers.
Run the DTI Calculator Ask SarahTYPICAL MIN. DOWN
3.5%
MORTGAGE INSURANCE
Required (MIP)
BEST FOR
First-time & credit-flexible buyers
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to make homeownership more accessible with a lower minimum down payment and more flexible credit requirements than many conventional programs. Because the government insures part of the loan, lenders can extend more flexible terms than they might otherwise.
Who qualifies for an FHA loan?
FHA loans are open to any qualifying borrower, not just first-time buyers, though they're especially common among first-time buyers and those with less-than-perfect credit. Income, credit, and debt-to-income requirements still apply and vary by lender overlay.
What is FHA mortgage insurance?
FHA loans require mortgage insurance premiums (MIP), including an upfront premium and an annual premium paid monthly, which protects the lender rather than the borrower. Unlike conventional PMI, FHA's annual MIP often stays for the life of the loan depending on the down payment and term.
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