🏡 FHA Loan: Your Path to Homeownership

What Is an FHA Loan?

FHA loans are mortgages insured by the Federal Housing Administration. They're designed for low-to-moderate income borrowers with lower credit scores or limited savings.

FHA Loan Requirements 2026

Minimum credit score: 580 for 3.5% down, 500-579 for 10% down. Debt-to-income ratio typically 43% or less. Stable employment and income for 2+ years.

FHA Down Payment Assistance

The 3.5% down payment can come from gifts, grants, or down payment assistance programs. This makes FHA ideal for first-time buyers with limited savings.

FHA Mortgage Insurance Premiums

FHA requires upfront MIP (1.75% of loan amount) plus annual MIP (0.15-0.75% depending on loan term and LTV). MIP typically lasts the life of the loan.

FHA Loan Limits by County

FHA loan limits vary by county based on local home prices. 2026 limits range from $472,030 in low-cost areas to $1,149,825 in high-cost areas.

FHA vs Conventional Loans

FHA is more lenient on credit and down payment. Conventional loans may be cheaper if you have good credit and 20% down (no mortgage insurance).

FHA Property Requirements

The home must meet FHA minimum property standards and be your primary residence. Appraisals are stricter than conventional loans.

FHA Streamline Refinance

If you already have an FHA loan, streamline refinance offers reduced documentation and lower rates without a new appraisal or credit check.

Common FHA Loan Mistakes

Don't forget to factor MIP into your payment comparison. Don't exceed debt-to-income limits. Don't make large deposits before closing without documentation.

Is FHA Right for You?

FHA is ideal if you have credit challenges, limited down payment, or are a first-time buyer. If you have strong credit and 20% down, conventional may be better.