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FHA Loans

A government-backed loan designed to help more people qualify for homeownership.

An FHA loan is insured by the Federal Housing Administration and is one of the most popular loan programs for first-time homebuyers. It allows lower credit scores and a smaller down payment compared to most conventional loans, which makes it accessible for buyers who are still building their financial profile. 

Lender Express works with multiple FHA-approved lenders to find you the best available terms. We handle the comparison so you can focus on finding the right home. 

 

WHAT IS AN FHA LOAN?

An FHA loan is a mortgage insured by the Federal Housing Administration, which is part of the U.S. Department of Housing and Urban Development. Because the government insures the loan, lenders take on less risk. That lower risk allows them to offer more flexible qualifying standards. 

FHA loans are available through private lenders, including banks, credit unions, and mortgage brokers. The government does not lend money directly. It simply provides insurance to the lender if the borrower defaults. 

FHA loans are best known for their low down payment option and willingness to work with buyers who have had past credit challenges.

 

KEY BENEFITS

  • Down payment as low as 3.5% with a credit score of 580 or higher
  • Credit scores as low as 500 may qualify with a 10% down payment
  • More flexible debt-to-income ratio guidelines compared to conventional loans
  • Gift funds are allowed for the entire down payment
  • Available for single-family homes, condos, and multi-unit properties up to four units
  • Can be used to purchase or refinance a primary residence

 

HOW IT WORKS

  1. Check your credit score. A score of 580 qualifies for the 3.5% down payment option.
  2. Get pre-approved. We review your finances and connect you with an FHA-approved lender.
  3. Find your home. The property must meet FHA minimum property standards.
  4. Complete the loan process. An FHA appraisal is required to confirm property value and condition.
  5. Close on your home and move in.

 

Use our mortgage calculator to estimate your monthly payment and see how an FHA loan compares to other options before you apply.

 

WHO THIS LOAN IS BEST FOR

  • First-time homebuyers with limited savings for a down payment
  • Buyers with a credit score between 580 and 660
  • Borrowers who have had past credit challenges such as late payments or collections
  • Buyers relying on gift funds from a family member for their down payment
  • Buyers looking to purchase a primary residence in most property types

 

BASIC REQUIREMENTS 

Minimum Credit Score  580 for 3.5% down; 500-579 with 10% down 
Down Payment  3.5% minimum (with 580+ credit score) 
Debt-to-Income Ratio  Up to 57% in some cases with compensating factors 
Loan Limits  Vary by county; visit HUD.gov for current limits 
Property Requirements  Must be your primary residence; must meet FHA minimum property standards 
Mortgage Insurance  Upfront premium (1.75% of loan amount) plus annual premium; typically required for life of loan unless down payment is 10% or more 

Our Extensive Loan Product Offering Includes:

We leverage advanced lending technology to enhance every stage of the loan journey — from instant calculations and eligibility checks to secure document processing. This platform-driven approach allows us to deliver faster responses while maintaining accuracy and compliance.

  • Conventional Loans (including low down payment options)
  • FHA Loans
  • VA Loans (even for borrowers with credit challenges)
  • USDA Loans
  • Jumbo Loans
  • HELOCs and Home Equity Loans
  • Reverse Mortgages
  • 2-1 Buydowns (help your clients reduce their initial monthly payments)
  • Down Payment Assistance Programs (DPA)
  • Non-QM Loans (for borrowers who don’t fit traditional lending criteria)
  • DSCR Loans (multiple ways to structure for investors)
  • Bank Statement Loans (for self-employed borrowers)

COMMON QUESTIONS

Is an FHA loan only for first-time homebuyers?
No. FHA loans are available to any eligible buyer, not just first-time buyers. However, they are particularly popular with first-time buyers because of the low down payment and flexible credit requirements.
How is mortgage insurance different on an FHA loan versus a conventional loan?
With an FHA loan, you pay both an upfront mortgage insurance premium at closing and an annual premium added to your monthly payment. On most FHA loans, mortgage insurance stays for the life of the loan unless you put at least 10% down, in which case it ends after 11 years. With a conventional loan, mortgage insurance cancels once you reach 20% equity.
Can I use an FHA loan to buy a multi-unit property?
Yes. FHA loans can be used to purchase properties with up to four units, as long as you live in one of them as your primary residence. This is a strategy some buyers use to offset their housing costs with rental income.
What happens if a home does not pass the FHA appraisal?
FHA appraisals evaluate both market value and property condition. If the home has safety issues or does not meet FHA minimum standards, the seller will typically need to make repairs before the loan can close. You can also negotiate repairs as part of your offer.
Can my down payment come from a gift?
Yes. FHA loans allow the entire down payment to be a gift from a family member, close friend, employer, or government program. A gift letter documenting that the funds do not need to be repaid is required.
What credit score do I need to qualify for an FHA loan?
A score of 580 qualifies you for the 3.5% down payment program. Scores between 500 and 579 may still qualify, but require a 10% down payment. Lenders may have their own overlays that set a higher minimum, so actual requirements can vary.

If you are buying your first home, our free First-Time Homebuyer Guide walks you through every step of the process, from checking your credit to closing day. 

Helpful Tools and Resources

Use our mortgage calculator to estimate your monthly FHA payment and compare it to other loan types. 

Open Mortgage Calculator →

Download our free First-Time Homebuyer Guide for a plain-English walkthrough of the entire home buying process. 

Download Free Guide →

Related Programs

View All Programs →
Conventional Loans →
Down Payment Assistance →

Why Lender Express

We Work for You, Not a Bank

Lender Express is a mortgage broker, not a lender. That distinction matters. We work for you, not for a single bank. Our job is to compare loan options across a wide network and help you find a solution that fits your goals and your situation.


Our loan officers take the time to understand what matters most to you before making any recommendations. The focus is always on clear guidance, honest answers, and helping you make a confident decision.

Ready to explore whether an FHA loan is the right fit?

Talk to one of our loan officers today.
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Interest Rates, APR’s & programs are illustrations subject to change at any time. These do not constitute a ‘Loan or Good Faith Estimate’ for payments and closing costs. Not all applicants will qualify. APR may vary by product type. Consumer is not obligated to use any party mentioned. Lender Express Mortgage is not affiliated with FHA, VA, USDA or the Federal Government. Lender Express Mortgage, LLC supports Equal Housing Opportunity (www.nmlsconsumeraccess.org) | (888) 286-0367 | 2500 S Power Rd Bldg 9 Ste 133, Mesa, AZ 85209. Regulated by the AZ Department of Financial Institutions. Arizona License #MB-1008082, CA #60DBO-140688, CO #MB-1963444, FL #MBR4665, IA #1963444, OR #1963444, PA #79751, TX #1963444. Figure: 7 tac § 80.200(b) consumer wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 North Lamar, suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department website at www.Sml.Texas.Gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.Sml.Texas.Gov. Above information and content is accurate as of 6/22.