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First-time home buyers do not need to worry that they earn too much money to qualify for an FHA mortgage. It is true that other government-backed mortgages may have an income or need requirement-the USDA mortgage loan program is a great example of one that does.

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March 24, 2019
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FHA Loan Articles

News and Updates for Homeowners

First-Time Home Buyers Who Choose FHA Mortgages

February 28, 2019 - Why would a first-time home buyer choose an FHA home loan to buy their first home with? There are many good reasons to consider buying your starter home with an FHA mortgage.

FHA Home Loans for First-Time Home Buyers Feature Lower FHA Credit Score Requirements

First-time home buyers and repeat borrowers alike are able to apply for an FHA home loan with the following FHA guidelines applicable for FICO scores:
  • FICO scores 580 or higher: eligible for maximum financing and a 3.5% down payment
  • FICO scores 500-579: Eligible for FHA loan consideration with a 10% down payment
Remember, those requirements are for both first loan borrowers and experienced home owners alike. Lender standards are not identical to FHA loan program requirements so you will need to see if your lender’s “overlays” require higher FICO scores for maximum financing.

FHA Home Loans Allow All Qualified Borrowers to Apply

First-time home buyers do not need to worry that they earn “too much money” to qualify for an FHA mortgage.

It is true that other government-backed mortgages may have an income or need requirement-the USDA mortgage loan program is a great example of one that does.

But FHA mortgages are not need-based loans and do not have an income ceiling. The couples, millennial home buyers, single house hunters, and other borrowers looking for a home with affordable monthly mortgage payments and no income limit should definitely explore their FHA mortgage loan options.

FHA Home Loans Have No Penalty for Early Payoff

Many shopping for a first home or starter home, condo unit, mobile home, or townhouse—all of which you can buy with an FHA mortgage—have considered making larger mortgage payments each month to pay down the mortgage faster.

FHA loan rules forbid the borrower being penalized for doing so; you cannot be charged a fee to pay off the loan early.

The lender may have specific requirements for making the final payments on the loan amount when paying off early, so you will need to discuss this with your loan officer to see what is required for your final payment.

Are you ready to speak to a participating FHA lender to learn more about your loan options? Don’t delay-you will be surprised at the number of options open to you including FHA construction loans for building a house from the ground up. Get ready to own your very first home!

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FHA.com Reviews

FHA.com is a one-stop resource for homebuyers who want to make the best decisions when it comes to their mortgage. With our detailed, mobile-friendly site, individuals can access information about different FHA products, the latest loan limits, and numerous other resources to make their homebuying experience easier. Take a look at some of the reviews from other FHA.com visitors!