FHA Loan
Buying a home for the first time—or finding a more flexible path into homeownership—doesn’t have to feel intimidating. At The HomeRun Lender | Future Home Loans, I believe the mortgage process should feel clear, transparent, and human.
This page walks you through the basics of FHA loans—from down payments and credit guidelines to the types of homes that qualify. FHA financing can be a powerful option for many buyers, and I’m here to help you explore whether it’s the right move for your next chapter.
1
What is a FHA Loan?
An FHA loan is a mortgage backed by the Federal Housing Administration and designed to make homeownership more attainable. These loans offer low down payment options, flexible credit guidelines, and competitive interest rates—making them a popular choice for first-time homebuyers and buyers who need a more approachable path to owning a home.
2
About FHA Loan Rates
FHA loan rates are typically very competitive, particularly for buyers who may not have perfect credit. Since these loans are insured by the Federal Housing Administration, lenders can offer more flexibility—often making monthly payments more manageable.
Your specific rate will be based on your credit, debt-to-income ratio, loan amount, and what the market is doing when you lock in your loan.
3
FHA Loan Requirements
Minimum Credit Score
580 (With 3.5% down; borrowers with scores between 500–579 may qualify with 10% down depending on lender guidelines.)
Minimum Down Payment
3.5% (Available to buyers with a credit score of 580 or higher.)
MAX LTV
96.5% for purchases (up to 100% when combined with certain down-payment assistance programs)
4
What type of home can I buy with a FHA Loan?
1. Single-family homes
2. FHA-approved condos
3. 2–4 unit properties (as long as one unit is owner-occupied)
4. Townhomes
5. Manufactured homes (subject to FHA guidelines)
5
Who is eligible for a FHA Loan?
1. Must be a U.S. citizen
2. Property must be primary residence
3. Must meet residual income requirements
6
How to get Approved
1. Must occupy the home as a primary residence
2. Must provide a valid Social Security number
3. Must have steady employment or income history
4. Must demonstrate ability to repay the loan
5. Property must pass FHA appraisal and meet safety standards
6. Debt-to-income ratio generally must fall within FHA guidelines
7. Must pay FHA mortgage insurance (UFMIP + annual MIP)
