FHA loans are backed by the Federal Housing Administration and designed to make homeownership accessible to a wider range of buyers. With lower credit score requirements and smaller down payments than conventional loans, they’re often the best path forward for first-time buyers or those rebuilding their credit.
580+ for 3.5% down; 500–579 with 10% down
As low as 3.5% Vary by county — check current FHA loan limits for CA and TX
Required — upfront MIP (1.75%) + annual MIP
Primary residence only
FHA loans are issued by private lenders — banks, credit unions, and mortgage brokers — but insured by the federal government. That government backing allows lenders to approve borrowers who wouldn’t qualify for a conventional loan, whether due to limited credit history, a lower score, or a smaller down payment.
The trade-off is mortgage insurance. All FHA loans require both an upfront MIP at closing and an ongoing annual MIP added to your monthly payment. The annual MIP can be removed after 11 years if your down payment was 10% or more — otherwise, it stays for the life of the loan.
We’ll compare FHA, conventional, and any other programs you qualify for — so you can see exactly what each option looks like before you decide.
