FHA home loans · Flexible credit guidelines
A home of your own, with credit that’s still growing.
FHA loans are insured by the Federal Housing Administration and built for buyers with smaller savings or credit that’s still being built. Gifts from family can help with the down payment, and the guidelines look at your whole story.
What to know.
The essentials, in plain English.
- Credit that’s still growing is welcome
- FHA guidelines can accept lower scores and past credit events that a conventional loan may not, so a setback doesn’t have to end the conversation.
- Buy with less saved
- FHA’s down payment minimums are lower than many conventional loans ask for, so a smaller savings account can still get you started.
- Help from family counts
- Gifts from family, an employer or an approved assistance program can go toward your down payment and closing costs, within FHA’s rules.
- FHA’s rules, explained up front
- FHA has its own mortgage insurance, property standards and loan limits. Your loan officer explains each one and compares FHA with conventional, so nothing surprises you.
What happens after you press the button.
- Your loan officer reaches out
- Ryan reads what you send personally and gets in touch to talk it through.
- What you’ll talk about
- Your goals, your income, what you’ve saved and your credit history, including anything you’d like explained.
- What to have handy
- A rough idea of your income and savings, and whether family plans to help. Documents come later.
Who it fits
Buyers who want a path to a home without perfect credit or large savings.
- First-time buyers
- Repeat buyers purchasing a home to live in
- Buyers rebuilding credit after a setback
- Buyers using gift money or down payment assistance
What you’ll need
Your loan officer confirms the list for your situation.
- Recent pay stubs, W-2s and tax returns
- Bank statements, plus a gift letter if family is helping
- A photo ID and your Social Security number
- A short explanation of any past credit events, such as a bankruptcy
FHA or Conventional?
| FHA | Conventional | |
|---|---|---|
| Backed by | The Federal Housing Administration | No government agency |
| Credit | More flexible with credit | Rewards stronger credit |
| Mortgage insurance | Upfront and annual premiums, for a period set by the loan | Can be removed once you have enough equity |
| Homes | The home you live in | Your home, a second home or a rental |
Common questions
Can I use an FHA loan more than once?
Yes. FHA loans are not only for first-time buyers, though you can usually have one at a time, for the home you live in.
What credit score do I need for an FHA loan?
FHA sets minimums, and each lender adds its own guidelines, so the answer depends on your full picture. Your score also affects how much you’ll need to put down. A conversation with your loan officer tells you where you stand.
Does an FHA loan have mortgage insurance?
Yes. Every FHA loan has an upfront premium, which is usually added to the loan, and an annual premium paid monthly. How long the annual premium lasts depends on your down payment.
Can family help with my down payment?
Yes. Gifts from relatives, an employer or an approved assistance program can count toward your down payment and closing costs. The giver signs a gift letter, and the lender documents where the money came from.
Are there limits on the home I can buy?
FHA loan amounts are capped by county, and the home must meet FHA’s property standards, which the appraisal checks.
Can I get an FHA loan after a bankruptcy or foreclosure?
Often, yes, after a waiting period that depends on the event and your circumstances. Your loan officer can tell you where you stand and what to do in the meantime.
FHA or conventional: which is right for me?
It depends on your credit, your savings and how long you plan to keep the loan. FHA is more flexible with credit, while conventional mortgage insurance can come off once you have enough equity. Compare both, with the full terms of each.
Will checking my options affect my credit?
Answering a few questions doesn’t check your credit. A credit check comes later, only with your permission, and your loan officer can explain how it may affect your score.
What if I don’t qualify?
Your loan officer tells you why and what to work on, such as paying down a balance or letting a credit event age, so you leave with a plan.
What does an FHA loan cost?
Closing costs such as lender fees, an appraisal and title charges, plus FHA’s upfront and annual mortgage insurance. Your Loan Estimate lists every cost before you commit.
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Your credit doesn’t have to be perfect.
Start where you are.
Wherever your credit is today, Ryan can show you the path from here.
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