What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. That insurance protects the lender, which lets FHA accept lower down payments and credit scores than many other loan types. FHA loans are for primary residences: the home you'll actually live in.
FHA loan highlights
- Low down payment: as little as 3.5% down with a credit score of 580 or higher.
- Flexible credit: scores from 500 to 579 may qualify with 10% down, subject to lender guidelines.
- Gift funds allowed: your down payment can come from an eligible family gift.
- Seller concessions: the seller may be able to contribute toward your closing costs.
- 1 to 4 units: buy a duplex, triplex or fourplex and live in one unit.
- Loan limits: maximum FHA loan amounts are set by county and updated each year.
Who is an FHA loan best for?
FHA is a strong fit if you're a first-time buyer, have limited savings for a down payment, are rebuilding your credit, or have a higher debt-to-income ratio than conventional guidelines allow.
How I structure FHA loans
FHA files succeed or fail on the details: credit history, income documents, the source of your down payment and the FHA appraisal. With my background in forensic investigation, I review all of it up front and fix problems before underwriting sees your file.
FHA vs. conventional
| Feature | FHA | Conventional |
|---|---|---|
| Minimum down payment | 3.5% (580+ score) | 3% to 5% for eligible buyers |
| Credit flexibility | More flexible | Generally 620+ |
| Mortgage insurance | Upfront + annual premium | PMI with less than 20% down; can be removed |
| Property use | Primary residence only | Primary, second home or investment |
Not sure which is better for you? Compare conventional loans or schedule a free consultation. I'll run both options side by side.
FHA loan FAQs
What credit score do I need for an FHA loan?
FHA guidelines allow 3.5% down with a credit score of 580 or higher, and 10% down with a score between 500 and 579. Individual lenders may set higher minimums, so the best way to know is to have your full file reviewed.
How much do I need to put down on an FHA loan in Florida?
The minimum is 3.5% of the purchase price with a 580+ credit score. Your down payment can come from savings or an eligible family gift. Florida down payment assistance programs can sometimes be combined with FHA.
Can I use an FHA loan for an investment property?
No. FHA loans are for owner-occupied primary residences. You can buy a 2 to 4 unit property if you live in one of the units. For pure investment properties, see DSCR loans.
Does an FHA loan have mortgage insurance?
Yes. There's an upfront premium, which can be added to the loan, plus an annual premium paid monthly. With less than 10% down, the annual premium generally lasts for the life of the loan unless you refinance.
Program guidelines, loan limits and mortgage insurance premiums are set by FHA/HUD and change over time. All loans are subject to credit approval and underwriting. This is not a commitment to lend. Not affiliated with HUD or FHA.