FHA
Homeownership with Accessible Financing Options
FHA Requirements
500
Credit Score
FHA loans offer flexibility with credit scores as low as 500. If your score isn't quite there, we have other options for you.
3%
Down Payment
The minimum down payment is based on several factors, including loan type, credit score and debt-to-income (DTI) ratio.
45%
Debt-to-Income Ratio
Your total monthly debt, including the new mortgage, should not exceed 45% of your gross monthly income. Exceptions can be made for borrowers with strong compensating factors.
Other Requirements
Loan Limits
For a conforming conventional loan, your loan must fall within the loan limits set by Fannie Mae and Freddie Mac. For the current year, the conforming loan limit for a single-family home is the specified conforming loan limits. There are exceptions, however. Alaska, Hawaii, and other high-cost areas of the country have higher loan limits, ranging up to $1,089,300.
PMI
If you put down less than 20% on a conventional loan, you’ll be required to pay for private mortgage insurance (PMI). PMI protects mortgage investors in case of a loan default. The cost for PMI varies based on your loan type, your credit score, and the size of your down payment.
