More house, less
down payment. Done right.
FHA loans may be an option for eligible buyers with lower credit scores or limited down payment funds. Loan approval, minimum credit scores, and down payment requirements are subject to FHA guidelines and lender underwriting.
Buyers building toward homeownership on their own timeline.
The loan is simple.
The structuring matters.
FHA loans are government-backed through the Federal Housing Administration, which can allow more flexible credit guidelines and a lower minimum down payment than some conventional programs. Flexible does not mean automatic — files still need to be properly structured to clear underwriting, and lender overlays can be more restrictive than FHA's published minimums.
Alex reviews credit, income, and property details up front to help identify potential issues before they become conditions. If credit needs improvement before applying, Alex can review potential steps and general timeframes based on the file.
The FHA 203(k) program is also available for eligible buyers who want to purchase and renovate a home, combining acquisition and approved rehabilitation costs subject to current FHA requirements.
Credit and income pre-review
Alex reviews your full file before you apply — identifying any credit issues to address, DTI concerns, and the exact down payment you'll need.
Down payment sourcing
FHA allows gift funds from family. We document the gift letter correctly so it doesn't create underwriting conditions.
FHA appraisal coordination
FHA appraisals have additional property condition requirements. We flag potential issues before the appraisal and provide clear communication throughout.
MIP calculation and comparison
FHA requires mortgage insurance premium (MIP). We calculate your total cost over time and compare FHA vs. conventional with PMI so you choose the right path.
Close on schedule
Many properly documented FHA transactions may close in approximately 30 days, although actual timelines vary based on the borrower, property, appraisal, title work, lender requirements, and other transaction-specific factors. We stay ahead of conditions and keep your agent and seller informed throughout.
A path to ownership
for more borrowers.
FHA guidelines are more forgiving than conventional — but you still need an originator who knows how to use them.
First-Time Homebuyers
A common FHA use case. A lower minimum down payment, flexible credit guidelines, and eligible gift funds can make it accessible for buyers purchasing their first home, subject to lender approval.
Borrowers Rebuilding Credit
Recent late payments, collections, or a past bankruptcy do not automatically disqualify a borrower. FHA has defined waiting periods and guidelines for each scenario, subject to lender overlays.
203(k) Renovation Buyers
Purchase a home that needs repairs and finance eligible renovation costs into the loan. Structured as a single loan combining property and approved improvements, subject to FHA and lender requirements.
Lower Down Payment Buyers
FHA permits a 3.5% minimum down payment for eligible borrowers with qualifying credit. Down payment may come from savings, eligible gift funds, or approved down payment assistance programs, subject to documentation.
Higher DTI Scenarios
FHA may allow higher debt-to-income ratios than some conventional programs, depending on automated underwriting findings and compensating factors. Actual limits are lender- and file-dependent.
Non-Traditional Credit
Limited or no traditional credit history does not automatically preclude FHA financing. Alternative credit — rent payment history, utility bills, and other non-traditional accounts — may be considered, subject to lender guidelines.
Program DetailsWhat to expect.
Loan Limits (Florida)
- Many lower-cost Florida counties: 2026 one-unit floor of $541,287
- Miami-Dade, Broward, and Palm Beach counties: 2026 one-unit limit of $667,000
- 2–4 unit properties have higher limits; county limits vary and should be confirmed via the current HUD FHA mortgage-limit lookup
Down Payment
- 3.5% minimum for qualifying credit of 580 or higher
- 10% minimum for scores from 500 through 579
- Eligible gift funds may be permitted with required documentation
- Lender overlays may impose stricter requirements than FHA's published minimums
Mortgage Insurance (MIP)
- Upfront MIP: 1.75% of loan amount (financed)
- Annual MIP: 0.55%–0.85% depending on LTV and term
- MIP duration depends on loan term, LTV, and current FHA rules
Credit Requirements
- 580 or higher generally required for 3.5% down
- 500–579 may be eligible with 10% down, subject to lender overlays
- Recent derogatory items reviewed per FHA and lender guidelines
203(k) Renovation
- Limited 203(k): up to $75,000 in total rehabilitation costs, subject to current FHA requirements
- Standard 203(k): major structural renovations
- Renovation funds held in escrow, released to contractors
Property Requirements
- Primary residence only
- Must meet FHA minimum property standards
- Condos must be FHA-approved project
FHA loan limits are set annually by HUD and subject to change. All loans subject to underwriting and lender approval. Not a commitment to lend. Program availability, eligibility, loan limits, terms, interest rates, fees, approval, and closing timelines are subject to change and may vary based on borrower qualifications, property eligibility, documentation, underwriting, lender and investor guidelines, and applicable federal and state requirements. This information is for general educational purposes and is not a commitment to lend or an offer of credit.
Frequently Asked Questions
Have questions about this program?
Alex reviews every file personally. Schedule a call and get direct answers.
3.5% down is possible.
Let's make it happen.
Book a strategy call and Alex will review your credit, income, and down payment — and give you an honest read on your FHA eligibility before you apply.