Some of the most asked questions by FHA Buyers

Eligibility & Requirements:

• What is the minimum credit score needed? You need at least 580 for a 3.5% down payment, or 500 if you can put down 10%.

• Are FHA loans only for first-time buyers? No, this is a common misconception - anyone who meets the basic criteria can use them, regardless of whether they've owned a home before.

• Can you earn too much for an FHA loan? No, there are no income limits on single-family FHA loans.

Down Payment & Costs:

• What's the minimum down payment? It's 3.5%, though your credit score and lender standards may affect this amount.

• Can the seller pay my closing costs? Yes, sellers can contribute up to 6% of the sale price toward closing costs in most cases.

• Can I get down payment assistance? Yes, family members and sometimes friends can contribute to your down payment.

Mortgage Insurance:

• How long do I have to pay mortgage insurance? Unlike in the past when it could be cancelled at a certain equity level, it now often stays for the life of the loan.

Loan Features:

• What are the maximum FHA loan limits? They vary by area based on median home prices, ranging from around $420,680 in most areas to over $1.4 million in expensive markets like Hawaii.

• Can you get a fixer-upper loan? Yes, through the FHA 203(k) Rehabilitation Mortgage, which lets you finance both the purchase and improvements.

• Are only fixed-rate mortgages available? No, FHA offers adjustable-rate mortgages and other options as well.