skip to main content



FHA Loans

house icon

Credit Score Needed: 580+

Down Payment Needed: 3.5%

FHA First Time Buyers

FHA Mortgage Loans

FHA loans are extremely popular with first-time homebuyers. This type of loan will finance most property types, including single-family homes, approved condominiums, townhomes, and multi-family units, as long as you live in one of the units as your primary residence.

For the lowest FHA rates, you’ll need a 650+ credit score.

FHA Mortgage Limits

Here are the single-family and multi-unit loan limits for 2024. You can also search here for your specific county.
# Units       Most areas          High-cost areas
1                 $498,257              $1,149,825
2                 $637,950              $1,472,250
3                 $771,125              $1,779,525
4                 $958,350              $2,211,600

FHA Loan Down Payment

You can get into an FHA loan with 3.5% down. That’s one of the main reasons this type of loan is so popular with first-time buyers.

Mortgage Insurance Premium

The biggest drawback to an FHA loan is that regardless of your down payment, in most cases, you’ll have a Mortgage Insurance Premium (MIP) for the life of your loan. That insurance can add $100 or more to your monthly payment.

But, if an FHA loan is the only one you can qualify for, it’s the best deal for you regardless of any MIP.

Debt to Income Requirements

Just like with any home loan, in addition to acceptable credit and down payment, you’ll need enough income to pay a mortgage payment and proof of steady employment.

The underwriter will check to make sure you make enough money to pay for your current debts and your new mortgage payment.

They’ll look at your debt-to-income ratio (DTI). Generally, this ratio needs to be below 43%. Sometimes, they might go higher. Your loan originator can go over that with you. Here’s an example:

  • Debts – $2,000
  • Income – $6,000
  • DTI = 33.33%

If you receive child support, you may be able to count it in your income. Check with your loan advisor.

FHA Loan Alternatives?

If your credit isn’t good enough for an FHA loan, you’ll need to do some work before applying since the FHA loan is the easiest to qualify for. By paying down some credit cards or becoming an authorized user on a family member’s credit card, your credit can improve quickly.

Homestead is a top lender of FHA loans for purchasing and refinancing. Our rates are some of the lowest in the states we serve. Our loan advisors provide excellent service, as you can tell from our reviews. Plus, we close fast!