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Educational Guide

FHA Loans

FHA loans are insured by the Federal Housing Administration and designed to make homeownership accessible to buyers with smaller down payments or less-established credit.

Low down payment

With a credit score of 580 or higher, you may qualify with just 3.5% down. Buyers with scores between 500–579 may still qualify with 10% down, depending on the lender.

Mortgage insurance (MIP)

FHA loans require an upfront mortgage insurance premium (often financed into the loan) plus an annual premium paid monthly. On most FHA loans with less than 10% down, this annual MIP lasts the life of the loan unless you refinance; with 10% or more down, it can drop off after 11 years.

Is FHA right for you?

FHA can be a great fit if your credit is still improving or your savings are limited. If you have strong credit and 5%+ to put down, a conventional loan may end up cheaper over time because PMI is removable. Run both scenarios.

Remember: HomeWise is an educational resource, not a lender. Always confirm current figures and terms with a licensed mortgage professional.
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