FHA loans, built for flexible qualifying
A government-backed loan known for easier income and credit qualifying. It is for the home you will live in, and we shop 40+ lenders to find your FHA fit, with $0 processing or underwriting fees.
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, part of HUD. FHA loans are designed to help more people become homeowners, so the income and credit side of qualifying is typically easier than a conventional loan.
You do not have to be a first-time buyer, though many first-timers start here.
Why use an FHA loan?
An FHA loan works much like a conventional loan. Here is where it differs:
- Income and credit are typically easier to qualify with than conventional.
- The appraisal is a little stricter. The home has to meet FHA’s condition and safety standards, so the property review is slightly more involved.
- It is for primary residences only. FHA is not for second homes or rentals.
- Mortgage insurance is required (more on that below).
FHA can be a strong fit if you are early in your credit journey, rebuilding after a setback, or buying your first home. As a broker, we shop 40+ lenders to find the FHA program that fits you.
What is FHA mortgage insurance (MIP)?
Every FHA loan includes a mortgage insurance premium (MIP). It protects the lender, and it is part of what lets FHA offer such flexible qualifying. It comes in two parts.
Upfront MIP
A one-time premium, usually rolled into your loan so you are not paying it out of pocket. It is currently 1.75% of the loan amount.
Annual MIP
An ongoing premium that is split into your monthly payment.
How do you remove FHA mortgage insurance?
This is the part worth planning around: on most FHA loans, MIP stays for the life of the loan. Conventional PMI, by contrast, comes off once you build equity.
The usual way to get rid of FHA mortgage insurance is to refinance into a conventional loan once you have enough equity in the home. We can help you time that move so you are not paying mortgage insurance any longer than you need to.
FHA loan FAQs
Do I have to be a first-time buyer to use an FHA loan?
No. FHA is popular with first-time buyers, but anyone can use one, as long as it is a home you will live in as your primary residence.
Can I use an FHA loan for a rental or a second home?
No. FHA loans are for primary residences only. For a second home or investment property, look at a conventional loan or a DSCR loan, and we can help with those.
Is an FHA loan harder to get than a conventional loan?
On income and credit, FHA is usually easier. The main difference is the appraisal, which is a little stricter because the home has to meet FHA’s condition standards, plus mortgage insurance is required.
Does FHA mortgage insurance ever go away?
On most FHA loans it stays for the life of the loan. The common way to remove it is to refinance into a conventional loan once you have built enough equity, a move we can help you plan.
What credit score do I need for an FHA loan?
There is no single magic cutoff. FHA is known for being flexible on credit, and because we shop 40+ lenders, we can find the one whose guidelines fit your situation.
Can I get an FHA loan after a bankruptcy or foreclosure?
Often, yes, after a waiting period. The details depend on your situation, so it is worth a quick review.