Everything you need to know about FHA home loans — requirements, credit scores, down payments, mortgage insurance, loan limits, and the complete FHA buying process. All explained in plain English.
An FHA loan is a government-backed mortgage insured by the Federal Housing Administration (FHA). Because the government insures the loan, lenders can offer more flexible qualification requirements — making homeownership possible for borrowers who may not qualify for conventional loans.
FHA loans are especially popular with first-time homebuyers, but they're available to anyone who meets the requirements — not just first-timers.
Everything you need to understand FHA loans — from requirements to closing.
Credit scores, income, DTI, employment, and property requirements.
Minimum scores, lender overlays, and tips to improve your credit.
How much you need, gift funds, and down payment assistance options.
Upfront and annual MIP, how it works, and how to remove it.
Current FHA loan limits by county and how they're determined.
Side-by-side comparison of FHA and conventional loan programs.
FHA loans are designed to make homeownership more accessible. They can be a good fit for many types of borrowers.
Low down payment and flexible credit make FHA a natural first step into homeownership.
If your credit score is between 500-620, FHA may offer a path when conventional loans don't.
With 3.5% down and gift fund allowances, FHA helps you buy with less cash upfront.
FHA isn't only for first-timers. Repeat buyers can also use FHA financing.
Common FHA mortgage terms explained in plain English.
Mortgage Insurance Premium — required on all FHA loans. Paid upfront and annually.
Upfront Mortgage Insurance Premium — 1.75% of loan amount, typically financed.
Debt-to-Income ratio — how much of your monthly income goes toward debts.
Maximum loan amount FHA will insure in a given county.
FHA rehab loan — finance both the purchase and renovation of a home.
Simplified FHA refinance with reduced documentation and no appraisal.
You need a minimum 580 credit score for the 3.5% down payment option. Borrowers with scores between 500-579 may qualify with 10% down. Individual lenders may have higher requirements — these are called "lender overlays."
FHA requires 3.5% down with a 580+ credit score. For scores 500-579, you'll need 10% down. Gift funds from family members can cover the entire down payment. Down payment assistance programs may also be available.
No. FHA loans are available to all qualified borrowers — first-time and repeat buyers alike. There is no requirement that you be a first-time homebuyer.
If you put down 10% or more, MIP cancels after 11 years. With less than 10% down, MIP stays for the life of the loan. Many borrowers refinance to a conventional loan once they reach 20% equity to eliminate mortgage insurance.
FHA sets maximum loan amounts by county. These limits vary based on local median home prices. In most areas, the limit for a single-family home is $498,257 for 2025. High-cost areas may have limits up to $1,149,825.
Check your FHA eligibility and see what you may qualify for. No impact to your credit score.
Takes about 10 minutes · No obligation · Soft credit pull
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Mortgage Clarity is built to make home loan topics easier to understand. When you're ready to explore specific loan options, these Valley West resources can help you go deeper into FHA, VA, conventional, and local mortgage topics.
Local mortgage guidance, home loan resources, and Nevada-focused support from the Valley West Mortgage team.
Visit Valley West MortgageLearn more about FHA loan options, FHA requirements, down payments, credit score basics, and FHA refinance topics.
Explore FHA loan resourcesReview VA loan eligibility, VA purchase options, VA refinance topics, and VA IRRRL education for eligible borrowers.
Explore VA loan resourcesUnderstand conventional loan options, PMI, down payments, credit requirements, and conventional refinance topics.
Explore conventional loan resources