Who this is for
Who FHA is built for
Rebuilding credit
FHA allows scores down to 500 with 10% down, and 580 with 3.5% down. Many lenders set their own minimums higher, which is why shopping matters.
Higher debt-to-income
FHA can approve higher ratios with compensating factors like reserves or minimal payment shock.
First-time buyers
Small down payment, gift funds allowed, and it pairs with down payment assistance.
Condo buyers in approved buildings
If the building is FHA-approved, or qualifies for a single-unit approval, FHA can work for condos.
Program highlights
What makes FHA different
Mortgage insurance
1.75% upfront (usually financed) and an annual premium, 0.55% for most borrowers. With under 10% down it typically lasts the life of the loan.
Assumable
FHA loans can be assumed by a qualified buyer when you sell, which can be valuable if rates rise.
Streamline refinance
Existing FHA borrowers can refinance with reduced documentation when it lowers the payment.
203(k) renovation
Buy and fix up in one loan. Renovation options →
Qualification guidelines
What lenders look at
Typical guidelines across my lender network. Every file is different, and I will tell you exactly where you stand after a quick review.
| Factor | Typical requirement | Required? |
|---|---|---|
| Credit score | 580+ for 3.5% down; 500–579 with 10% down | ✓ YES |
| Down payment | 3.5% or 10% | ✓ YES |
| Owner occupancy | Must be your primary residence | ✓ YES |
| Loan amount | Up to your county's FHA limit | ✓ YES |
| Condo approval | FHA-approved building or single-unit approval | ✓ YES |
| Mortgage insurance | Upfront and annual MIP | ✓ YES |
| Perfect credit history | Not needed | ✗ NOT REQUIRED |
In Hawaii
FHA in Hawaii
- Higher limits. Hawaii is a special exception area. FHA's 2026 ceiling there can reach $1,873,625 depending on county. I confirm the exact limit for your property.
- Condo approvals are the big hurdle. Many Oahu buildings are not on the FHA list. I check before you offer and can request a single-unit approval when the building qualifies.
- Leasehold. FHA allows leasehold if the lease runs at least 10 years past the loan's maturity. Details →
How it works
From first call to closing
- Quick callI check your credit picture and the property type.
- Shop itLenders set different FHA overlays; I find the ones that fit you.
- ApprovalFull underwriting with your documents.
- CloseFunding and keys.
Common questions
FHA FAQ
What credit score do I need for FHA?
HUD allows 580+ with 3.5% down and 500–579 with 10% down. Individual lenders may require more; I find those that follow HUD's minimums.
Can I get rid of FHA mortgage insurance?
If you put down 10% or more, annual MIP ends after 11 years. Otherwise it lasts the life of the loan, and many borrowers later refinance to conventional to drop it.
Is every condo FHA-eligible?
No. The building must be FHA-approved, or the unit must qualify for a single-unit approval.
Can I use gift money?
Yes. Gifts from family and other eligible donors can cover the down payment with documentation.
Sources: HUD Handbook 4000.1 (II.A); HUD Mortgagee Letter 2023-05 (annual MIP); HUD Mortgagee Letter 2025-23 (2026 loan limits).
