FHA loans are government-backed mortgages insured by the Federal Housing Administration, designed to help buyers with lower credit scores or smaller down payments access homeownership.
FHA loan requirements
- Minimum 3.5% down payment with credit score 580+
- 10% down payment with credit score 500–579
- DTI: front-end under 31%, back-end under 43% (up to 57% with compensating factors)
- Property standards: home must meet HUD minimum property requirements
Mortgage Insurance Premium (MIP)
- Upfront MIP: 1.75% of loan amount (can be rolled into loan)
- Annual MIP: 0.15%–0.75% depending on loan term and LTV
- With <10% down: MIP lasts the life of the loan
- With 10%+ down: MIP falls off after 11 years