FHA Mortgage
- Todd Probasco
- 9 hours ago
- 1 min read
An FHA mortgage is a home loan insured by the Federal Housing Administration (FHA), designed to help borrowers—especially first-time homebuyers—qualify for a mortgage with more flexible requirements than conventional loans.
Key Features of an FHA Mortgage:
Feature | FHA Loan |
Down Payment | As low as 3.5% with a credit score of 580+ |
Credit Score | Minimum 580 (500–579 possible with 10% down) |
Loan Limits | Vary by county; typically lower than conventional limits |
Mortgage Insurance | Upfront MIP (1.75% of loan amount) + monthly MIP |
Debt-to-Income Ratio | Typically up to 43%, can go higher with strong compensating factors |
Occupancy | Must be a primary residence |
Property Requirements | Must meet FHA appraisal and safety standards |
Pros:
Easier to qualify with lower credit scores
Low down payment options
Assumable loans (can be transferred to a qualified buyer)
Cons:
Mortgage insurance premiums (MIP) required for the life of the loan (if under 10% down)
Loan limits are lower than some conventional options
Must meet strict appraisal requirements
Who Should Consider an FHA Loan?
First-time homebuyers
Buyers with less-than-perfect credit
Those who need a low down payment option
People with a higher debt load
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