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Explore Your FHA Eligibility
Review your credit profile, income, existing debts, available down payment funds, and home purchase goals. FHA guidelines and lender requirements help determine available financing options.
FHA HOME PURCHASE LOANS
Your Path to Homeownership Could Start With an FHA Loan.
Buying a home may be more achievable than you think. FHA-insured mortgages offer down payment options as low as 3.5% for qualified buyers and may provide financing opportunities for borrowers with a range of credit histories. Whether you’re purchasing your first home or making your next move, iLoan can help you explore your FHA financing options.
3.5% Down
FHA minimum down payment option
for qualified buyers with
credit scores of 580 or higher.
500–579
FHA guidelines may permit
financing with at least 10%
down, subject to lender approval.
FHA loans are subject to credit, income, property, and underwriting requirements. Individual lenders may have higher minimum credit scores. FHA mortgage insurance and closing costs apply. Financing is not guaranteed. iLoan is not a government agency.
New Home. New Possibilities.
Explore FHA home financing options designed for qualified buyers with different down payment and credit circumstances.
Find FHA Loans Programs in Your City
Select your state and search for your city to explore local mortgage information for this specific loan program.
Select a state to begin.
UNDERSTANDING FHA HOME FINANCING
How Does an FHA Home Loan Work?
FHA home loans are mortgages insured by the Federal Housing Administration. They are offered through participating mortgage lenders and may provide financing opportunities for buyers with different credit histories and down payment circumstances.
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Get Pre-Approved & Find a Home
Work with an iLoan mortgage professional to explore financing options and begin the pre-approval process. Then search for an eligible home within your financing and affordability range.
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Complete Your FHA Mortgage
Once you’re under contract, your mortgage moves through documentation, appraisal, underwriting, and closing. Final approval depends on applicable FHA and lender requirements.
What Makes FHA Loans Different?
FHA insurance helps participating lenders offer mortgages under FHA program guidelines. Eligible borrowers may benefit from lower down payment options and different credit qualification standards. FHA mortgage insurance premiums, property requirements, and loan limits apply. FHA financing is not limited to first-time buyers.
What Credit Score Do You Need for an FHA Loan?
FHA guidelines allow different minimum down payment options based on qualifying credit scores. Individual lenders may apply stricter credit requirements.
FHA CREDIT SCORE GUIDELINES
580 or Higher
As Low as 3.5% Down
Borrowers with qualifying credit scores of 580 or higher may be eligible for FHA financing with a minimum down payment of 3.5%, subject to all applicable underwriting requirements.
FHA CREDIT SCORE GUIDELINES
500–579
At Least 10% Down
FHA guidelines may permit borrowers with qualifying credit scores between 500 and 579 to obtain financing with at least 10% down. Lender credit overlays and additional underwriting requirements may limit availability.
Concerned About Your Credit Score?
Don’t assume homeownership is out of reach. Speak with iLoan about FHA qualification requirements and potential financing options.
FHA credit score thresholds are program guidelines, not a guarantee of loan availability or approval. Participating lenders may require higher scores. Income, debt-to-income ratio, assets, property eligibility, loan limits, and mortgage insurance requirements also apply.
INTERACTIVE FHA MORTGAGE CALCULATOR
Calculate Your Estimated FHA Mortgage Payment
Explore how your home price, down payment, interest rate, taxes, insurance and FHA mortgage insurance affect your estimated monthly payment.
Customize Your FHA Home Loan
Adjust the sliders to explore your purchase.
$50K$1.5M
3.5%50%
1%15%
15 years30 years
$0$30K
$0$12K
FHA Mortgage Insurance Assumptions
Upfront MIP is modeled at 1.75% and financed into the mortgage. Enter an illustrative annual MIP rate below. Actual rates depend on FHA rules, loan amount, term and other factors.
Default 0.55% is illustrative for certain 30-year FHA loans, not a universal rate.
Your Estimated FHA Mortgage
Illustrative purchase financing breakdown.
Home Purchase Price
$300,000
Down Payment
$10,500
Base FHA Loan Amount
$289,500
Financed Upfront FHA MIP
$5,066
Total Estimated Loan Amount
$294,566
Estimated Total Monthly Payment
Calculating…
Principal, interest, taxes, insurance & MIP
Monthly Principal & Interest
Calculating…
Monthly Property Taxes
$375
Monthly Homeowners Insurance
$150
Estimated Monthly FHA MIP
Calculating…
Down Payment Funds
$10,500
Adjust the values to explore your FHA scenario.
Explore My FHA Loan Options →Educational estimate only; not a loan quote, approval or eligibility determination. The selected interest rate is hypothetical. Monthly MIP is initially estimated using the entered annual rate multiplied by the base loan amount divided by 12. Actual FHA annual MIP is calculated under applicable FHA schedules and can change as the mortgage amortizes. FHA loan limits, upfront MIP rules and MIP duration apply. Closing costs, HOA fees, special assessments and other expenses are excluded. The down payment is not the total cash needed to close. Lenders may impose stricter credit standards.
EXPLORE FHA MORTGAGE BENEFITS
Why Do Homebuyers Choose FHA Loans?
FHA-insured mortgages may provide home financing opportunities for buyers with different credit profiles, down payment resources, and homeownership goals.
Down Payments as Low as 3.5%
Qualified borrowers with credit scores of 580 or higher may be eligible for FHA financing with as little as 3.5% down, subject to applicable underwriting and lender requirements.
Flexible Credit Guidelines
FHA guidelines may allow borrowers with qualifying credit scores between 500 and 579 to obtain financing with at least 10% down. Individual lenders may require higher minimum credit scores.
Eligible Gift Funds
FHA guidelines may allow qualifying gift funds from permitted sources to help cover down payment or closing expenses. Documentation and source requirements apply.
Not Just for First-Time Buyers
FHA home loans are not limited to first-time homebuyers. Eligible repeat buyers may also use FHA financing when purchasing a qualifying primary residence.
Multiple Eligible Property Types
FHA financing may be available for qualifying one-to-four-unit properties, including certain condominiums, subject to occupancy, appraisal, and program requirements.
Future Refinancing Options
Eligible homeowners may later explore FHA Streamline refinancing or conventional refinancing, depending on their mortgage, equity, qualification, and financial goals.
Could an FHA Loan Help You Buy a Home?
Use our interactive FHA mortgage calculator to explore down payments, estimated monthly payments, and mortgage insurance.
COMPARE YOUR HOME FINANCING OPTIONS
FHA Loans vs. Conventional Loans: What’s the Difference?
Both FHA and conventional mortgages can help eligible buyers purchase a home. The right option depends on your credit profile, down payment, mortgage insurance, property, and financial goals.
OPTION 01
FHA Home Loans
FHA-insured mortgages may provide homeownership opportunities for buyers with different credit histories and down payment resources.
- Minimum down payment as low as 3.5% for qualified borrowers with credit scores of 580 or higher.
- FHA guidelines may permit scores of 500–579 with at least 10% down, subject to lender requirements.
- Upfront and annual FHA mortgage insurance premiums generally apply.
- Available for qualifying primary residences, including eligible one-to-four-unit properties.
- FHA loan limits and property requirements apply.
OPTION 02
Conventional Home Loans
Conventional mortgages are not FHA-insured and offer different financing structures, qualification standards, and mortgage insurance rules.
- Certain conventional programs allow down payments as low as 3% for eligible borrowers.
- Credit, income, debt-to-income, and underwriting requirements vary by program.
- Private mortgage insurance may apply when financing exceeds 80% of the property’s value.
- Conventional PMI may be eligible for cancellation under applicable requirements.
- Different property types, loan limits, and financing options may be available.
Which Mortgage Program Is Better?
Neither FHA nor conventional financing is automatically better for every borrower. FHA may be attractive to certain buyers with limited down payment funds or different credit circumstances, while conventional financing may offer advantages for borrowers with qualifying credit, equity, or mortgage insurance considerations. Compare the full loan costs before deciding.
THINKING ABOUT YOUR FUTURE MORTGAGE?
Can You Remove FHA Mortgage Insurance Later?
FHA mortgage insurance premiums (MIP) work differently from conventional private mortgage insurance (PMI). Depending on when your FHA loan originated and its original loan-to-value ratio, annual FHA mortgage insurance may remain in place for many years or for the full mortgage term.
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Understand FHA Mortgage Insurance Duration
For FHA loans with case numbers assigned on or after June 3, 2013, annual MIP generally lasts for the mortgage term when the original loan-to-value ratio exceeds 90%. When the original LTV is 90% or less, annual MIP generally lasts for 11 years. Older FHA loans may follow different cancellation rules.
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Explore Conventional Refinancing
As home equity increases, eligible FHA homeowners may refinance into a conventional mortgage. If the new conventional loan-to-value ratio is 80% or less, conventional PMI generally is not required. Borrowers with less equity may still qualify for a conventional refinance with applicable mortgage insurance.
Already Have an FHA Loan? You May Have Options.
You don’t necessarily have to wait until you have 20% equity to explore refinancing. Depending on your credit, home equity, current mortgage, and available loan terms, conventional refinancing may be worth reviewing. FHA Streamline refinancing is another option for eligible existing FHA borrowers, although it generally does not eliminate FHA mortgage insurance.
Refinancing creates a new mortgage and may involve closing costs, new loan terms, and changes to total interest paid. Mortgage insurance requirements depend on the new loan program and borrower qualification. FHA MIP cancellation rules vary by loan origination date and applicable program requirements.
UNDERSTANDING FHA MORTGAGE EXPENSES
FHA Mortgage Insurance & Closing Costs Explained
FHA home loans offer low down payment options for eligible borrowers, but understanding mortgage insurance, closing costs, and other expenses is essential when planning your home purchase.
Upfront FHA Mortgage Insurance
Most standard FHA purchase loans require an upfront mortgage insurance premium (UFMIP), commonly 1.75% of the base loan amount. Eligible borrowers may finance this premium into the mortgage, increasing the total loan balance.
Annual FHA Mortgage Insurance
FHA loans generally require annual mortgage insurance premiums (MIP), typically collected through monthly mortgage payments. The rate depends on applicable FHA schedules, loan amount, repayment term, and original loan-to-value ratio.
FHA Closing Costs
Closing expenses may include lender charges, appraisal fees, title services, recording fees, prepaid interest, property taxes, homeowners insurance, and other applicable charges. Actual costs vary by transaction.
How Long Does FHA MIP Last?
For FHA loans with case numbers assigned on or after June 3, 2013, annual MIP generally lasts for the mortgage term when the original LTV exceeds 90%. When the original LTV is 90% or less, annual MIP generally lasts 11 years. Older loans may have different cancellation rules.
Can You Eliminate FHA Mortgage Insurance Later?
Depending on your financial circumstances and available home equity, refinancing an FHA mortgage into a conventional rate-and-term refinance may help eliminate FHA mortgage insurance. Conventional PMI may still apply if the new loan-to-value ratio exceeds 80%. Refinancing involves new loan costs and qualification requirements.
Can You Get Help With an FHA Down Payment?
FHA homebuyers may be able to use certain eligible gift funds, down payment assistance programs, and permitted seller contributions to help manage upfront home purchase expenses.
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Eligible FHA Gift Funds
FHA guidelines allow certain documented gifts from eligible sources to help with down payment and closing expenses. Gifts must meet FHA source and documentation requirements.
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Homebuyer Grants & Assistance
Eligible buyers may qualify for state, local, or other approved assistance programs that help with down payments or closing costs. Program funding and eligibility vary.
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Seller Contributions
FHA guidelines may permit eligible seller contributions toward allowable closing expenses, prepaid items, and other approved costs, subject to program limits. Seller contributions cannot replace the required minimum down payment.
Explore FHA Down Payment Assistance Options
Learn about potential homebuyer assistance programs or connect with iLoan to review FHA financing opportunities.
Assistance programs are subject to availability, eligibility, funding, and applicable program requirements. FHA down payment, credit, income, and property requirements still apply. No grant or financing approval is guaranteed.
FHA MORTGAGE QUESTIONS ANSWERED
FHA Home Loan Frequently Asked Questions
Explore answers to common questions about FHA credit scores, down payments, qualification requirements, mortgage insurance, and homeownership.
What credit score do I need to qualify for an FHA loan?
FHA guidelines generally allow a minimum down payment of 3.5% for qualified borrowers with credit scores of 580 or higher. Borrowers with qualifying scores between 500 and 579 may be eligible with at least 10% down.
Individual lenders may require higher minimum credit scores, and all applicable underwriting requirements must be satisfied.
Can I buy a home with an FHA loan if my credit score is below 580?
Potentially. FHA program guidelines permit certain borrowers with qualifying scores between 500 and 579 to be considered for financing with at least 10% down. However, not every lender offers FHA loans at these credit scores.
Approval also depends on income, existing debts, available assets, property eligibility, and applicable lender requirements.
How much down payment do I need for an FHA home loan?
Eligible borrowers with qualifying credit scores of 580 or higher may obtain FHA financing with as little as 3.5% down. Borrowers with qualifying scores between 500 and 579 generally need at least 10% down.
Closing costs and prepaid expenses are separate from the down payment. Some buyers may qualify for homebuyer assistance programs .
Are FHA loans only for first-time homebuyers?
No. FHA loans are not limited to first-time buyers. Eligible repeat homebuyers may also qualify when purchasing a property that meets FHA occupancy and program requirements.
Visit our First-Time Homebuyers guide for additional home purchase resources.
Can I use gift funds for my FHA down payment?
FHA guidelines permit certain documented gift funds from eligible sources to help with down payment and closing expenses. The source of the funds and required documentation must meet applicable FHA guidelines.
What is FHA mortgage insurance?
FHA mortgage insurance includes an upfront mortgage insurance premium and generally an annual premium collected through monthly mortgage payments. These premiums help support the FHA insurance program.
The actual amount depends on applicable FHA requirements, loan amount, term, and mortgage characteristics.
Can I remove FHA mortgage insurance after buying my home?
For FHA loans with case numbers assigned on or after June 3, 2013, annual mortgage insurance generally lasts for the mortgage term when the original loan-to-value ratio exceeds 90%. When the original LTV is 90% or less, annual MIP generally lasts for 11 years.
Eligible homeowners may also explore refinancing into a conventional mortgage to eliminate FHA mortgage insurance. Conventional PMI may apply depending on the new loan-to-value ratio and financing terms.
Learn more about rate-and-term refinancing .
Can I purchase a duplex or multi-unit property with an FHA loan?
FHA financing may be available for qualifying one-to-four-unit residential properties. The borrower generally must occupy the property as a primary residence and satisfy applicable FHA property, appraisal, and underwriting requirements.
What is the difference between FHA and conventional loans?
FHA loans are insured by the Federal Housing Administration, while conventional loans are not FHA-insured.
These programs have different credit, down payment, mortgage insurance, loan limit, and property requirements. Compare our Conventional Loans guide to explore the differences.
Can I refinance an FHA loan later?
Yes, eligible FHA homeowners may explore refinancing options, including FHA Streamline refinancing or conventional refinancing, depending on their mortgage, equity, credit profile, and financial goals.
FHA Streamline refinancing generally does not eliminate FHA mortgage insurance. Explore our FHA Streamline Refinance guide for more information.
Still Have Questions About FHA Home Loans?
Connect with iLoan to explore FHA mortgage qualification, down payment options, and financing opportunities.
PERSONALIZED FHA HOME LOAN GUIDANCE
Explore Your FHA Home Loan Options With iLoan
Whether you’re buying your first home, purchasing again, or concerned about your credit score, connect with iLoan to explore FHA financing options and understand your next steps.
Let’s Explore Your Path to Homeownership.
FHA-insured mortgages may offer financing opportunities for qualified homebuyers with different credit histories and down payment circumstances. Our mortgage professionals can help you understand available FHA options and qualification requirements.
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Review FHA Credit Requirements
Explore FHA credit score guidelines, including eligible 3.5% and 10% down payment scenarios.
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Explore Down Payment Options
Discuss eligible down payment sources, gift funds, and potential homebuyer assistance.
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Understand Your FHA Mortgage Payment
Review potential principal, interest, property taxes, homeowners insurance, and FHA mortgage insurance.
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Start My FHA Pre-Approval →
Request Your FHA Mortgage Consultation
Complete the form below and an iLoan mortgage professional can help you explore available FHA home financing options.
iLoan LLC · NMLS #1947845.
FHA loans are subject to
applicable FHA program requirements,
lender guidelines, and approval.
FHA is a government mortgage
insurance program; iLoan is
not affiliated with or endorsed
by the Federal Housing Administration
or U.S. Department of Housing
and Urban Development.
Submitting an inquiry does not
constitute a loan application
or guarantee financing.
