FHA Home Loans
Overseen by the U.S. Department of Housing and Urban Development. Built for buyers who have steady income but not a large deposit — or a credit history with a few marks on it.
FHA Home Loans
Everything the programme does, grouped so you can find the part you care about. Anything here raise a question? That’s what the phone is for.A great loan for first-time home buyers, and the deposit can come entirely from a documented family gift. On a $350,000 home that's $12,250 rather than $70,000.
The seller can pay up to 6% of the purchase price towards the buyer's closing costs — a far larger allowance than conventional loans permit, and the most underused lever in a negotiation.
A lump sum is rolled into the loan, and it is also charged monthly — 0.85% of the loan amount divided by 12 is the monthly figure. Mortgage insurance does not protect the borrower in any way. It protects the lender in case of default, and it is required on FHA loans no matter how large the down payment.
The maximum for much of our region, though it varies from county to county — Palm Beach, Broward and Miami-Dade each carry their own limit.
Both fixed and adjustable rate loans are available, with 30-year and 15-year amortizations. The shorter term costs more monthly but far less in total interest.
These loans are assumable and carry no pre-payment penalties. A future buyer can take over your loan at your original rate — which becomes a genuine selling point if rates have risen since you closed.
There are no income limits on FHA loans, unlike USDA. What you earn doesn't disqualify you.
Applicants need a minimum FICO score of 580 to qualify for the low down payment advantage, currently around 3.5 percent.
A lower score doesn't necessarily exclude you from FHA eligibility. Applicants below 580 will need to put down 10 percent to qualify.
If your score doesn't meet the minimum, weigh the advantages and disadvantages of putting down a larger deposit against using those same funds to improve your credit first.
The U.S. Department of Housing and Urban Development (HUD) oversees F.H.A. loans (Federal Housing Administration).
Which is exactly why the terms above are possible: HUD insures the loan, so your lender can accept a smaller deposit and a shorter credit history than they otherwise would.
Unsurpassed service.
Apply online.
Start your application from your phone and finish it at your desk. Whether you're buying, refinancing or just exploring, we're here to help.
FrequentlyAsked Questions
No — and it's the single most common reason people delay buying. Conventional starts at 3% down, FHA at 3.5%, and VA and USDA can require nothing at all. The trade-off is mortgage insurance and a higher payment, which is worth weighing against several more years of saving.
It usually comes down to credit. FHA is more forgiving of past credit events and starts at 3.5% down, but its insurance typically stays for the life of the loan. Conventional needs stronger credit, starts at 3%, and its PMI cancels at 20% equity — which can be worth thousands over time.
USDA uses its own eligibility map and the boundaries surprise people — plenty of areas that feel suburban still qualify. There are also household income limits by county. Send us an address and we'll check both in a couple of minutes.
Often, yes. You'll use one loan program, but it can frequently be paired with assistance run by your state or county. These are consistently underused because buyers don't know they exist — ask us which ones you'd qualify for.
For the right situation it's a genuine option; for the wrong one it's expensive. The balance grows rather than shrinks, and it affects what's left to heirs. HUD counselling is required for good reason. We're glad to walk through it with your family present, and to compare it against downsizing or a HELOC first.