Who it fits
First-time buyers, people rebuilding credit, and anyone with a modest down payment. The home must be your primary residence.
Down payment and credit
| Credit score 580 or higher | 3.5% minimum down payment |
|---|---|
| Credit score 500 to 579 | 10% minimum down payment |
Lenders can set stricter minimums than FHA's. Gift funds from family can cover the down payment.
Mortgage insurance
FHA loans carry an upfront mortgage insurance premium, which can be added to the loan, plus an annual premium paid monthly. Depending on your down payment, the annual premium lasts 11 years or the life of the loan, which is why many FHA borrowers later refinance into a conventional loan.
Questions
Can I get an FHA loan after bankruptcy?
Often yes. FHA generally allows a new loan two years after a Chapter 7 discharge, and sometimes during a Chapter 13 plan with court approval.
Are there FHA loan limits?
Yes. FHA sets maximum loan amounts by county each year. We'll check the limit for your area.