FHA Loans

FHA isn't a 'bad credit' loan. It's a sensible-credit loan with a lower bar to entry. The minimum credit score is technically 500 (with 10% down), but with 3.5% down you'll need a 580. Most FHA approvals we see land in the 620–700 range.

The sweet spot for FHA is the buyer who has steady income, manageable debt, and a credit profile that's good but not pristine — maybe a late payment from three years ago or a thinner credit history because they've never carried much debt.

FHA charges two kinds of mortgage insurance: an upfront premium of 1.75% of the loan amount (rolled into the loan, not paid out of pocket), and an annual premium of around 0.55% of the balance, paid monthly.

Here's the part most blogs get wrong: on most modern FHA loans with less than 10% down, mortgage insurance stays on for the life of the loan. The classic exit strategy is to refinance into a conventional loan once you have 20% equity. We'll run that refi math with you the moment it makes sense.

FHA's debt-to-income (DTI) limits are some of the most generous in the industry. The standard ceiling is 43%, but with strong compensating factors — solid credit, reserves, or a stable employment history — we can push DTI to 50% or even higher with automated underwriting approval.

That flexibility is the reason FHA wins for buyers carrying student loans or a car payment alongside the new mortgage.

If the house you love needs work, the FHA 203(k) program lets you roll the purchase price and the renovation budget into a single mortgage. It's particularly useful for foreclosures, dated homes, or properties with deferred maintenance that wouldn't pass a standard appraisal.

There's a Limited 203(k) for projects under $35,000 and a Standard 203(k) for major renovations. We coordinate the contractor draws and inspections so you're not chasing paperwork.

FHA loans must be for a primary residence — you have to live in the home within 60 days of closing and stay for at least a year. Multi-unit properties up to four units qualify, which is huge for house-hackers who want to live in one unit and rent the others.

The property itself has to meet HUD's minimum standards: working systems, no peeling paint on pre-1978 homes, intact roof, and so on. We pre-flag likely issues before you make an offer.