FHA loans are a popular option for homebuyers who want flexible qualification terms, a lower down payment, or who are working on building stronger credit. Backed by the Federal Housing Administration, these loans make homeownership accessible for more buyers across the U.S.

Here’s what makes FHA loans appealing:

• Low Down Payment: As little as 3.5% for credit scores of 580 or higher.
• Flexible Credit: Borrowers with scores between 500–579 may qualify with a 10% down payment.
• Competitive Loan Limits: Set by county and property type, typically ranging from around $470,000 in lower-cost areas to over $1,000,000 in higher-cost regions.
• Reasonable Debt-to-Income Ratios: Generally up to 43%, with flexibility for strong applicants.
• Mortgage Insurance: Includes a one-time upfront premium of 1.75% of the loan amount and annual premiums between 0.45% and 1.05%, depending on loan size and term.

These benefits make FHA loans ideal for first-time buyers, those with limited savings, or anyone who wants a smoother path to homeownership.