While prequalifying for an FHA loan doesn't necessarily guarantee that you will be able to purchase the home of your dreams, it does help you and potential lenders know your borrowing power and what you can afford.

FHA.com: Home Purchase and Refinance Loans

FHA Loan Programs for 2024

The most recognized 3.5% down payment mortgage in the country. Affordable payments w/good credit.

Are You Watching Your Credit Score?




- Improving Your Credit Score Has Never Been More Important -

FHA.com is a privately owned website, is not a government agency, and does not make loans.
FHA Home Loans

Choose a Loan Type

FHA.com is a privately owned website, is not a government agency, and does not make loans.

Fixed Rate FHA Loans

The Popular 203(b) Federally Guaranteed Mortgage

Get the Full Story About FHA Loans

Home ownership rates in America continue to increase at a steady rate due in a large part to the implementation of FHA home loans insurance program. Over the years, FHA has helped Americans gain the financial independence that comes with owning a home. By creating jobs and reasonable mortgage rates for the middle class, financing military housing, and producing housing for the low income and the elderly, FHA has helped Americans become some of the best housed people in the world with a homeownership rate of 64.2% for Americans currently owning their own homes. FHA has insured more than 46 million home loans since 1934.

HOW IT WORKS

By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

FHA loans benefit those who would like to purchase a home but haven't been able to put money away for the purchase, like recent college graduates, newlyweds, or people who are still trying to complete their education. It also allows individuals to qualify for a FHA loan whose credit has been marred by bankruptcy or foreclosure.

NUTS AND BOLTS

The most popular FHA home loan is the 203(b). This fixed-rate loan often works well for first-time homebuyers because it allows individuals to finance up to 96.5 percent of their home loan which helps to keep down payments and closing costs at a minimum. The 203(b) home loan is also the only loan in which 100 percent of the closing costs can be a gift from a relative, non-profit, or government agency.

FHA will collect the annual MIP, which is the time on which you will pay for FHA Mortgage Insurance Premiums on your FHA loan. Cancellation of the premiums are as follows:

  • No more than 15 year term
    Loan to value at closing up to 90%
    11 year termination
  • No more than 15 year term
    Loan to value at closing greater than 90%
    No cancellation until loan paid off
  • Greater than 15 year term
    Loan to value at closing up to 90%
    11 year termination
  • Greater than 15 year term
    Loan to value at closing greater than 90%
    /No cancellation until loan paid off

GUIDELINES

It is not necessary to meet a minimum income requirement in order to qualify for a FHA loan but debt ratios specific to the state in which the home will be purchased have been put into place to prevent borrowers from getting into a home they cannot afford. This is done through a close analysis of income and monthly expenses.

FHA Loan Programs

SEE YOUR CREDIT SCORES   From All 3 Bureaus  

Do you know what's on your credit report?

Learn what your score means.


FHA Loan Articles and Mortgage News

Manufactured Housing and FHA Loans

March 10, 2024 - Roughly 20 million Americans have purchased manufactured housing, and most government-backed mortgage loan programs offer some type of home loan for these borrowers. That includes the FHA, which offers these types of home loans.

How to Get Money with an FHA Mortgage

March 7, 2024 - FHA home loans have some options common to all government-backed mortgages and some unique features. USDA loans may not be approved for “income-producing” properties. But is that also true of FHA mortgages?

Home Loan Options to Consider

March 5, 2024 - Some borrowers anticipate wanting to refinance later, and some don’t. But going forward it may be wise not to skip thinking about a refinance loan when the rates are still elevated. Plan, budget, and save with this in mind.

Home Loan Interest Rate Facts

March 1, 2024 - Home loan interest rates are back in the 7% range, with dips back to the 6% range along the way. What do you need to remember in a time when the housing market is trying to improve but is hitting some rocky territory along the way? We cover some of the major issues in this article.

Home Insurance Coverage for the House You Buy

February 26, 2024 - FHA loans and other government-backed mortgages do not (on paper) require you to carry specific types of homeowner’s insurance, but you’ll want coverage just the same to protect your investment. Mortgage insurance protects the lender in case you default on the loan.