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FHA Home Loan

The Federal Housing Administration was created in 1934 in response to the Great Depression. It set many of the original government standards for the housing industry, and its loan program continues to assist homebuyers to this day.

Achieve the American Dream

FHA loans extend friendlier qualification requirements to middle-class Americans to promote homeownership in the United States.

You did what you needed to do to make it this far, but perhaps it hasn’t been easy on your savings or your credit score. You know you deserve to be a homeowner too, but you’re not sure if you can qualify for a conventional mortgage. Don’t fear — the Federal Housing Administration is here to help.

Put Your Tax Dollars to Work

With a credit score of 580 or higher, you may qualify with a down payment as low as 3.5% of the purchase price. At 530 to 579, you may still qualify with 10%.

Most mortgage lenders will hesitate to approve you for a mortgage if your debt-to-income ratio, or DTI, approaches 36%. If you have car payments, student loans, or other large debts to pay off, this can create a barrier to qualification, even if owning would actually be better for your budget than renting. The maximum DTI for FHA loans is 43%, which gives you a bit more breathing room.

Is a FHA Loan right for you?

Speak with one of our experienced senior loan officers today about buying or refinancing a home.

Choosing the Right Loan

Scenario 1

Christine was a first-time homebuyer who had struggled to make ends meet at an earlier time in her life, and her mortgage shopping experience was initially very stressful as she learned about the qualification requirements for conventional mortgages. It was a great relief to her when she learned about the easier income, credit, and down payment requirements of FHA loans.

Scenario 2

Fellow first-time buyer James was also drawn to the low down payment requirement of a FHA loan, until he discovered that he could qualify for a VA loan with a zero down payment thanks to his military service.

Scenario 3

Sarah is buying her first home as well, but she is fortunate enough that qualifying for a mortgage is less of a concern for her. A dedicated Loanwise specialist will help her evaluate whether she wants to take advantage of the FHA loan program or go for a loan amount greater than the FHA’s lending limit.

FHA Loan Limits

FHA loan limits vary by county but are usually lower than the conforming loan limits set for conventional mortgages.

As of 2017, the FHA loan limit for a single-unit home in most parts of the United States is $275,665.

The limit is greater in certain high-cost areas, for example:

  • Miami, FL: $345,000
  • Chicago, IL: $365,700
  • Juneau, AK: $409,400
  • Denver, CO: $493,350
  • Seattle, WA: $592,250
  • Los Angeles, CA: $636,150
  • New York, NY: $636,150
  • Honolulu, HI: $721,050