FHA Loans
Why Buyers Choose FHA Loans
Designed to make homeownership more accessible with more accommodating qualification guidelines and lower upfront costs.
Lower Down Payment
Buy a home with as little as a 3.5% down payment.
Broader Credit Eligibility
Designed to accommodate a wide range of credit profiles.
Higher Allowable DTI Ratios
May permit higher debt-to-income ratios than some conventional financing options.
Popular Home Financing Option
Widely used by both homebuyers and homeowners.
FHA Purchase vs. FHA Refinance
FHA loans offer options whether you’re purchasing a home or refinancing an existing loan.
FHA Purchase Loan
Purchase with a lower down payment.
Primary Residence
Must be your main home.
Accommodating Guidelines
Designed for a wide range of borrowers.
FHA Streamline Refinance
Eligible borrowers may be able to refinance with reduced documentation requirements.
FHA Cash-Out Refinance
Convert your home equity into cash.
FHA Renovation Option
Finance your home repairs with a 203(k) loan.
How an FHA Loan Works
Down Payment
Lower upfront cost for qualified borrowers.
Mortgage Insurance
Includes upfront and monthly Mortgage Insurance Premiums (MIP).
Credit Guidelines
Credit scores as low as 580.
Loan Limits
Varies by location and housing market.
The Breakdown
3.5%
Down Payment
580+
Credit Score
~56.99%
Debt-to-Income
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Estimate Your FHA Loan Monthly Payment
See How Much Home You May be Able to Afford
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Frequently Asked Questions
What is an FHA loan and how does it work?
An FHA loan is a government-backed mortgage issued by FHA-approved lenders like loanDepot and insured by the Federal Housing Administration under HUD.
Who qualifies for an FHA loan?
Borrowers who meet FHA and lender qualification requirements may be eligible, subject to credit, income, property, and underwriting review.
What credit score do I need for an FHA loan?
FHA loans may be available to borrowers with credit scores as low as 520. Borrowers with credit scores between 520 and 579 may be required to make a larger down payment. Additional qualification requirements apply, and a loan officer can help determine what options may be available to you.
What’s the minimum down payment for an FHA loan?
The minimum down payment is typically 3.5% for borrowers with credit scores of 580 or higher. Borrowers with credit scores between 520 and 579 may be required to make a 10% down payment.
FHA vs conventional — which is right for you?
The right choice depends on your financial situation and homeownership goals. Your loan officer can help go over all your options and find a loan that suits your specific needs.