FHA Loan
A government-insured loan built for buyers with a smaller down payment or thinner credit. You trade lasting mortgage insurance for an easier path to qualifying.
- Down payment
- As little as 3.5% down with a credit score around 580 or higher; 10% down if your score is between 500 and 579.
- Credit context
- Built to accept lower credit scores. Many lenders look for about 580, though each adds its own overlays. Mortgage insurance is required and usually stays for the life of the loan.
- Income rules
- No income limit. You'll need steady, documented income; most lenders keep the debt-to-income ratio near 43%, sometimes higher with strong compensating factors.
Individual lenders set the interest rate, fees, mortgage-insurance treatment, and final approval requirements. Compare written Loan Estimates before choosing.
How repayment works
Your monthly housing payment usually includes principal and interest, and may also include property taxes, homeowners insurance, mortgage insurance, and association fees. Your lender’s written Loan Estimate and Closing Disclosure control the actual costs and terms.
A lower advertised down payment does not necessarily mean the lowest monthly payment or lowest total cost.
Who it may fit
- Buyers who are rebuilding credit
- First-time buyers who want a clearer path
These are situations worth exploring, not a qualification decision.
What could rule it out
- The issuing body lists a credit floor of 580: Scores 500–579 allowed with at least 10% down (FHA policy).. A lender may require more.