A different path to home.
An FHA loan is a home loan insured by the Federal Housing Administration. Because the government insures it, lenders can be more flexible on credit history and down payment than with many other loans.
Who it is for
- Buyers with a smaller down payment saved
- Buyers rebuilding credit or with a shorter credit history
- First-time and repeat buyers alike. FHA is not limited to first-time buyers
- People buying a home they will live in as their main residence
What you will need
- Photo ID for each borrower
- Recent pay stubs and the last two years of W-2s, or tax returns if you are self-employed
- Recent statements for the accounts holding your down payment and reserves
- Permission to check your credit
- A home that meets FHA property standards, confirmed by an FHA appraisal
Good to know
- FHA loans carry mortgage insurance: one premium at closing, which is usually added to the loan, and one paid monthly.
- FHA sets a maximum loan amount for each county, and it changes from year to year.
- Gift money from family can often be used toward the down payment when it is documented properly.
Common questions
Is an FHA loan only for first-time buyers?
No. Repeat buyers use FHA loans too. The home does need to be your main residence.
Does an FHA loan have mortgage insurance?
Yes. There is a premium due at closing, which is usually financed into the loan, and a monthly premium that is part of your payment.
Can I use an FHA loan on a house that needs repairs?
A standard FHA loan needs the home to meet FHA property standards. If it needs work, an FHA 203(k) renovation loan can finance the purchase and the repairs together.
Can a family member give me money for the down payment?
Often, yes. Gift funds from an eligible source are allowed when they are documented with a gift letter and a paper trail.
