Loan Programs · FHA Loan
Easier to Qualify For
A lower credit score and a smaller down payment are OK. A common choice for first-time buyers.
Written by the East Coast Mortgage team
An FHA loan is backed by the Federal Housing Administration, which means the government insures part of the loan so lenders can afford to take on a little more risk. In practice, that means more flexible credit and down payment requirements than a typical conventional loan.
FHA loans are designed for buyers with smaller down payments, and the minimum depends on your credit profile under HUD's guidelines (linked below). They're especially common for first-time buyers who haven't had years to build savings or a long credit history yet.
The tradeoff: FHA loans require mortgage insurance premiums (MIP), both upfront and monthly, for most of the life of the loan. It's a real cost, but for many buyers the lower barrier to entry is worth it, especially if the plan is to refinance into a conventional loan later once there's more equity.
Curious what a fha loan would actually cost you? Run the numbers, no commitment. Or see why shopping it through a broker beats walking into one bank.
Still deciding between programs?
General information, not a commitment to lend. Rates, terms, and eligibility vary by lender and are subject to underwriting guidelines. Equal Housing Lender, NMLS #2354674.
How FHA compares
Side by side with the other programs most buyers choose between.
| Compare | VA | FHA | Conventional | USDA |
|---|---|---|---|---|
| Down payment | May not be required for eligible borrowers | Designed for smaller down payments | Varies by program, some allow smaller down payments | May not be required in eligible areas |
| Monthly mortgage insurance | None | Yes (MIP) | Until you build enough equity (PMI) | Annual guarantee fee, lower than PMI |
| Credit flexibility | Flexible | Most flexible | Solid credit gets the best terms | Flexible |
| Where the home can be | Anywhere | Anywhere | Anywhere | Eligible rural and suburban areas |
| Built for | Veterans, active duty, some spouses | First-time buyers, lower scores | Buyers with good credit and some savings | Buyers outside big city limits |
General program guidelines only. Your actual terms depend on the lender, your credit, and the property. Not a commitment to lend.
Common questions
What credit score do I need for an FHA loan?
FHA guidelines allow for lower scores than most conventional loans, though the exact number that gets you the best terms depends on the lender. We'll tell you honestly where you stand.
Can I use an FHA loan more than once?
Generally FHA loans are meant for a primary residence, but there are circumstances where a borrower can have more than one FHA loan at a time. Worth a real conversation.
Popular with everyday buyers
Other programs in the same lane. All 23 →
Sources
- CFPB: FHA loans
- HUD: FHA loans for homebuyers
- HUD: FHA mortgage limits lookup
General information, not advice for your specific situation. Program rules come from the agencies above and from each lender, and they change. A licensed loan officer confirms what applies to you.
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NMLS #2354674 · Equal Housing Opportunity · Not a commitment to lend