FHA Loans
What are FHA Loans?
Since 1934, FHA loans have helped millions of homebuyers become homeowners. Insured by the Federal Housing Administration (FHA), these loans typically have lower down payments and more flexible credit requirements than non-government-backed loans.
Highlights of an FHA Loan:
- For financing a primary residence only
- As low as 3.5% down payment allowed
- FHA loan limit is $498,257 with higher loan amounts available in high cost areas
- Down payment can be gifted from a relative, borrowed from an eligible 401K or provided through an approved state or lender program
- Non-occupant co-signers are allowed (but must be eligible borrowers)
- Seller can contribute up to 6% of the purchase price toward closing costs
- Two types of mortgage insurance (MI) are required:
- Upfront MI – can be financed into the loan or paid in cash
- Annual MI – paid monthly as part of the mortgage payment
- Minimum 660 credit score allowed with Automated Underwriting System Approve/Eligible*
- Loan limits may vary by State/County
