Primary residence
You generally must move into the property and use it as your principal home. FHA is not designed to finance vacation homes or a typical investment-only purchase.
A more approachable path to homeownership
Understand FHA down payments, credit guidelines, mortgage insurance, property rules, and closing steps before you apply.
- 3.5%
Minimum down payment
For borrowers who meet FHA’s maximum-financing credit criteria.
- 1–4
Eligible property units
Occupy the home as your primary residence.
- 580
FHA score benchmark
Lenders may apply higher credit requirements.
- 2026
County-based loan limits
Limits vary by location and number of units.
The fundamentals
What is an FHA loan?
An FHA loan is a mortgage made by an approved lender and insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development. FHA insurance reduces a lender’s risk, which can make financing accessible to buyers with a smaller down payment or a less-established credit profile.
FHA does not lend money directly. You apply through a participating mortgage lender, and both you and the property must satisfy the applicable requirements.
Eligibility at a glance
What lenders generally review. Qualification is based on your complete financial profile and the property—not one number in isolation.
Credit and payment history
Your score, recent payment patterns, collections, bankruptcies, and other credit events may affect eligibility and required documentation.
Income and monthly debts
Lenders document stable, eligible income and compare your housing expense and recurring debts with gross monthly income.
Funds and reserves
Funds for the down payment, closing, and reserves must come from acceptable, documented sources. Eligible gifts or assistance may be allowed.
Property standards
An FHA appraisal evaluates value and certain minimum property requirements related to safety, security, and structural soundness.
Loan limit
Your base loan must fit the FHA limit for the county and property unit count. Higher-cost areas receive higher limits.
Understand the cost
FHA mortgage insurance has two parts. Mortgage insurance protects the lender—not the homeowner—if the loan defaults. It allows FHA to support flexible financing, but it also affects upfront cash and the monthly payment.
Calculated from the base loan amount. It may be paid at closing or financed into the loan, which increases the total amount borrowed.
The annual premium is divided across monthly payments. The rate and duration depend on loan amount, term, and original loan-to-value.
How long does annual MIP last?
Generally 11 years when the original loan-to-value is 90% or less. Above 90%, it generally continues for the loan term. Refinancing into another loan later may be an option, but future qualification and market conditions are not guaranteed.
Interactive planning tool
Estimate an FHA monthly payment. Adjust the assumptions to see how financing and ownership expenses can shape the payment.
Your assumptions
Enter estimates for the home and your local costs.
$
%
%
% / yr
$ / yr
%
$
Estimated monthly payment
$3,159
Principal, interest, taxes, insurance, MIP & HOA
Principal & interest
$2,482
Property taxes
$367
Home insurance
$133
Monthly MIP
$177
HOA dues
$0
- Down payment
- $14,000
- Base loan
- $386,000
- Financed upfront MIP
- $6,755
- Total loan amount
- $392,755
Educational estimate only—not a quote, Loan Estimate, approval, or commitment to lend. Assumes a 30-year fixed loan and financed 1.75% upfront MIP. Actual rates, premiums, taxes, insurance, HOA dues, closing costs, and eligibility vary.
2026 FHA loan limits
Your county and property type set the maximum. These national floor and high-cost ceiling amounts apply to forward FHA mortgages in the contiguous United States. Limits in Alaska, Hawaii, Guam, and the U.S. Virgin Islands can be higher. Check the official HUD lookup for the exact county limit before shopping.
| Property | Low-cost floor | High-cost ceiling |
|---|---|---|
| 1 unit | $541,287 | $1,249,125 |
| 2 units | $693,050 | $1,599,375 |
| 3 units | $837,700 | $1,933,200 |
| 4 units | $1,041,125 | $2,402,625 |
Compare thoughtfully
FHA vs. conventional financing. The lowest down payment is not always the lowest overall cost. Ask for side-by-side estimates based on your actual profile.
Down payment
FHA loan
As low as 3.5% for qualified borrowers
Conventional loan
Programs may start around 3% for qualified borrowers
Credit flexibility
FHA loan
Often more accommodating of lower scores or limited history
Conventional loan
Pricing and approval may be more sensitive to credit
Mortgage insurance
FHA loan
Upfront MIP plus annual MIP
Conventional loan
PMI may apply below 20% down; cancellation rules differ
Property use
FHA loan
Primary residence; eligible 1–4 unit homes
Conventional loan
Primary, second home, or investment options may be available
Property review
FHA loan
FHA appraisal and minimum property requirements
Conventional loan
Appraisal and lender property standards apply
From planning to keys
How the FHA loan process works. Prepare early and keep your documents current. A clear financial paper trail can help the loan review move smoothly.
1
Talk with an FHA-approved lender
Review your goals, credit, income, savings, debts, and estimated payment.
2
Complete a preapproval
Submit the requested financial documents and learn your practical price range.
3
Shop for an eligible home
Your offer should reflect your budget, timeline, and appropriate contract protections.
4
Complete appraisal and underwriting
The lender reviews the borrower, property, title, insurance, and loan conditions.
5
Review, sign, and close
Confirm final terms and cash to close, complete the walk-through, and sign closing documents.
Is FHA a good fit?
Look at access and long-term cost
FHA may be worth exploring if you have limited down-payment funds, need more credit flexibility, plan to occupy a one- to four-unit property, or can use documented gift funds. Compare the full payment and total cost with other programs before deciding.
Potential advantages
- Low minimum down payment
- Flexible qualifying guidelines
- Gift funds may be permitted
- Fixed- and adjustable-rate options
Important tradeoffs
- Upfront and annual mortgage insurance
- Primary-residence requirement
- County loan limits
- FHA property standards
Common FHA questions
Clear answers before you apply.
Is an FHA loan only for first-time home buyers?
No. First-time and repeat buyers may use FHA financing when they meet the program and lender requirements. The property generally must be your primary residence.
What credit score is needed for an FHA loan?
FHA guidelines may allow maximum financing with a qualifying score of 580 or higher. Scores from 500 to 579 are generally limited to 90% financing. Individual lenders can set higher minimums, and approval considers more than the score alone.
Can gift funds help with the down payment?
Yes. FHA guidelines may permit eligible gift funds from approved sources. The gift and transfer must be documented, so coordinate with your loan officer before moving money.
Can I buy a duplex with an FHA loan?
Potentially. FHA financing can be used for eligible one- to four-unit properties when you occupy one unit as your primary residence and the property meets program requirements.
Can FHA mortgage insurance be removed?
It depends on the original loan-to-value ratio and loan term. For many loans above 90% LTV, annual mortgage insurance remains for the life of the FHA loan. At 90% LTV or below, it is generally required for 11 years.
Does an FHA appraisal replace a home inspection?
No. An appraisal supports value and FHA property eligibility; it is not a comprehensive inspection. Buyers should consider an independent home inspection to better understand the property’s condition.
Explore your options
See how an FHA loan could fit your home buying plan. Get a personalized review of your estimated payment, cash needed, available programs, and next steps.