FHA loans for first-time buyers
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government insures the lender against loss, FHA guidelines are more flexible on credit scores and down payments than many conventional loans.
Who it's for
- Buyers with a smaller down payment saved
- Buyers rebuilding or growing their credit
- Buyers using gift funds from family
What you'll typically need
- Steady income you can document (pay stubs, W-2s or tax returns)
- A down payment from as little as 3.5% for qualifying borrowers
- A home you will live in as your primary residence
- A home that meets FHA property standards at appraisal
Guidelines vary by lender and change over time. A licensed loan officer confirms what applies to you.
The good
- Lower down payment
- Flexible credit guidelines
- Gift funds allowed for the down payment
Trade-offs to know
- Upfront and annual mortgage insurance premiums
- Loan amount limits that vary by county
- Property must pass FHA appraisal standards
Step by step
- 01Pre-approval conversation
- 02Document upload
- 03Home search with your agent
- 04Appraisal and underwriting
- 05Closing day
Other programs
FHA loansConventional 3% downUSDA loansDown payment assistance
On a real site each program gets its own page like this one.
Talk it through with Jordan Ellery
Questions are free. So is a first look at your numbers.
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