Veterans Direct Mortgage

The Accessible Path · Everyone Welcome

FHA Home Loans

Backed by the Federal Housing Administration, FHA loans exist to make homeownership reachable: 3.5% down, credit guidelines that forgive a thin or bruised file, and competitive rates even when your score isn't perfect.

3.5%

Minimum Down

Flexible

Credit Guidelines

Allowed

Gift Funds

1–4 Units

Property Types

How FHA loans work

The FHA insures the loan, which lets lenders approve profiles conventional pricing punishes — lower scores, higher debt-to-income ratios, shorter credit histories. You'll pay an upfront mortgage insurance premium (financeable) plus a monthly premium.

The trade-off to know honestly: with the minimum down payment, FHA's monthly insurance lasts for the life of the loan. The classic play is FHA to buy the home, then refinance into conventional once your equity and credit have grown — dropping the insurance entirely. We flag that moment for our clients.

FHA loan limits

FHA limits are set per county and run below conventional conforming limits in most areas. We check your exact county's limit in the first conversation — in many markets it comfortably covers the median home.

Straight Answers

FHA Loans: what buyers ask

What credit score does FHA require?

FHA guidelines allow 3.5% down at 580+, and lower scores with 10% down. Individual lenders add overlays — one advantage of a broker is finding the lender whose overlay fits your file.

Can my down payment be a gift?

Yes — the entire 3.5% can be a documented gift from family. Sellers can also contribute up to 6% toward your closing costs.

Does FHA mortgage insurance ever go away?

With less than 10% down, the monthly premium lasts the life of the loan — the standard exit is refinancing to conventional at 20% equity. With 10%+ down, it drops after 11 years.

Can I buy a duplex, triplex, or fourplex with FHA?

Yes — with 3.5% down, as long as you live in one unit. Projected rent from the other units can even help you qualify. It's one of the most accessible house-hacking programs there is.

Is FHA only for first-time buyers?

No — anyone can use FHA, and there's no income cap. It's simply priced and structured to be most useful for buyers earlier in the wealth-building curve.

Compare

Other programs worth pricing

Serving in the military, or served? The VA loan is our specialty — $0 down, no PMI, and usually unbeatable if you qualify.

220+ lenders. One application. Your best deal.