FHA Loans
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the government insures it, lenders can be more flexible on credit and down payment.
FHA loans are popular with first-time buyers and with anyone rebuilding credit. They can also be used to refinance, including FHA Streamline refinances that often don’t require an appraisal.
Who it’s for
How it works
FHA loans require mortgage insurance: an upfront premium, which can be added to the loan, and an annual premium paid monthly. In exchange, the credit and down payment requirements are more forgiving than most conventional loans.
FHA’s minimum down payment depends on your credit score, and the down payment can come from gift funds or approved assistance programs. FHA loans are for primary residences only, and the home has to meet FHA property standards.
What you need to qualify
- Credit scores lower than conventional are often accepted. We’ll tell you where you stand.
- Debt-to-income ratios that can be higher than conventional, with compensating factors.
- Two years of steady employment history (gaps can be explained).
- The home must be your primary residence.
- The property must meet FHA minimum property standards.
Documents to have ready
- Pay stubs, W-2s and, if needed, tax returns
- Two months of bank statements
- Gift letter and donor documentation, if family is helping
- Photo ID and Social Security number
- Purchase contract, or your current FHA mortgage statement if refinancing
How it works with Amerifi Lending
Frequently asked questions
Can I get an FHA loan with past credit problems?
Often, yes. FHA has waiting periods after events like bankruptcy or foreclosure, and they’re usually shorter than conventional. Let us review your situation.
Does FHA mortgage insurance ever go away?
It depends on your down payment when you take the loan. In many cases it lasts for the life of the loan unless you refinance into a conventional loan later. We can plan for that.
Can I buy a duplex or fourplex with FHA?
Yes, as long as you live in one of the units. FHA has higher loan limits for 2–4 unit properties.
What is an FHA Streamline?
It’s a refinance for current FHA borrowers with reduced paperwork, and often no appraisal. See our guide to refinancing without an appraisal.
Helpful guides
Related loan options
Ready to see what you qualify for?
Have questions? Call or text us, or start your application online. There is no cost to find out what you qualify for.
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