The FHA loan program is “amazing” for first–time buyers
If you’re looking to buy your first home, an FHA loan may be able to help you do it. These loans tend to be easier to qualify for than conventional financing, and they offer low down payments as well.
Mortgage advisor Ivan Simental recently delved into this “amazing loan program,” as he puts it, on an episode of The Mortgage Reports podcast.
Are you considering an FHA loan for your home purchase? Here’s what you need to know:
Check your FHA loan eligibility. Start here (Dec 27th, 2021)
Listen to Ivan on The Mortgage Reports Podcast!

Requirements to qualify for an FHA loan
If you want to buy a home or refinance with an FHA loan, you’ll need to meet some basic requirements set by the Federal Housing Administration. Keep in mind that these are FHA’s baseline requirements, and in practice, rules can vary from one mortgage lender to the next:
- 580 minimum credit score in most cases
- 3.5% minimum down payment
- Debt–to–income ratio below 50%
- Steady, two–year history of income and employment
Your mortgage lender will verify your eligibility when you apply by checking paperwork (like bank statements and tax returns) and by pulling your credit score and credit reports.
The home you’re buying also needs to meet FHA requirements.
FHA allows financing for 1–, 2–, 3–, and 4–unit homes, as long as the borrower uses the property as a primary residence. In addition, the home must meet basic standards for safety and livability. And your loan amount has to be within local FHA loan limits.
Check your FHA loan eligibility. Start here (Dec 27th, 2021)
Credit score matters for FHA loans
With FHA loans, there are different credit score brackets. The bracket you fall into will determine your down payment, your interest rate, and whether you qualify for an FHA loan at all.
Here’s how those brackets breakdown:
- 500 to 579: You’ll need a 10% down payment and can expect the highest interest rates
- 580 to 639: You’ll need a 3.5% down payment. If you have at least a 620, you’ll get much better interest rates than the previous bracket
- 640 to 679: You’ll need a 3.5% down payment, and as Simental puts it, “You’ll get way better interest rates, and the terms of the financing are just much more favorable”
- 680 and up: You’ll need a 3.5% down payment and should consider a conventional loan instead
“A 680 is where you really, really want to start taking a look at conventional financing,” Simental says.
“I wouldn’t want you to stay in an FHA loan for the entire life of your loan. If you have a 680 FICO score or above, definitely ask your lender if you can qualify for conventional financing just because it’s overall a better program for you.”
Options for FHA down payment and closing cost help
Worried about covering that down payment? There are lots of options with FHA loans.
For one, you can use a down payment assistance program. These are often offered through state and local housing agencies or nonprofit organizations and can cover some or even all of your down payment and closing costs.
You can also:
- Get assistance from a family member. Just note that the assistance must be a true gift – not a loan – and be properly documented
- Ask your real estate agent to contribute. FHA allows realtors to contribute all or a portion of their commission to a buyer’s down payment or closing costs
- Use lender credits. This means the lender covers part or all of you fees. In exchange, you typically pay a slightly higher interest rate
If you opt for the latter, you’d take a higher interest rate, and then the lender would contribute money toward your closing costs. As Simental explains, “Yes, your payment will go up a little bit, but you have to come with zero money out of your pocket.”
Buyers should plan to refinance into a conventional loan within a few years if they go this route. This will allow them to get out of that higher payment and reduce their interest rate.
Also, note that FHA isn’t the only type of home loan that allows down payment assistance. You could use gift money, lender credits, and/or seller credits with just about any mortgage program. For more information, learn about closing costs and how to lower them.
Get matched with a mortgage loan. Start here (Dec 27th, 2021)
Expect mortgage insurance
All FHA loans require mortgage insurance, which protects the lender if you default on the loan. The exact amount of insurance you’ll pay depends on your down payment, loan term, and loan amount. But annually, it typically ranges anywhere from 0.45% to 1.05% of your loan balance. Your premiums are spread out across the year and added to your monthly mortgage payment.
There’s also an upfront mortgage insurance premium fee required by FHA. This is equal to 1.75% of the loan amount, but most borrowers don’t actually pay it upfront. Instead, they roll it into their loan balance.
In some cases, you may be able to cancel your mortgage insurance after 11 years; in others, it may be permanent for the entire life of the loan.
“If you put more than 10% down, your mortgage insurance will fall off after 11 years,” Simental says. For those who made a smaller down payment, “You’ll need to refinance into a conventional product once you’ve gained the 20% equity in your house.”
If you’re using Social Security or disability income to qualify for your FHA loan, there’s a nice benefit. According to Simental, these wages are “grossed up” – or rounded up – by 25%. So if you get $1,000 in payments, that would be grossed up to $1,250 instead.
“It’s pretty cool because it gives you that additional income for qualifying purposes,” Simental says.
DACA recipients are eligible, too
As of January 19 this year, DACA program recipients are now eligible for FHA financing just as any other U.S. citizen. Before this, DACA home buyers could only use conventional loans, which are significantly harder to qualify for.
“This makes it really awesome for individuals that are DACA recipients,” Simental says. “They can take advantage of FHA financing with lower FICO scores and still be able to obtain homeownership.”
Using an FHA loan? Have a long–term plan too
According to Simental, FHA loans should be considered “a bridge loan” – a stepping stone on the way toward conventional financing, which is much more affordable and may come with lower rates.
Because of this, it’s important for FHA borrowers to have an action plan going in.
“You should come up with a two–, three–, or four–year plan for you to get out of that FHA loan and into a conventional product,” Simental says.
If you’re not sure how to do that, talk with your loan officer before finalizing your loan application. You’ll want to be sure there’s a clear–cut path to getting out of your FHA loan and into a more affordable conventional mortgage.
Get more FHA loan help
Want to learn more about how to qualify for an FHA loan? Need financing advice or guidance? Reach out to a mortgage broker, loan officer, or financial advisor for help. They can point you toward the right path for your unique goals and budget.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
Two examples include over the counter stromectol 647 Ducha vaginal Fco
We crossed a floxed BASP1 mouse Fig S2 with a Krt8 Cre ER mouse to delete BASP1 in the fully differentiated Krt8 expressing taste cells indications for tamoxifen Martina JA, Diab HI, Lishu L, Jeong AL, Patange S, Raben N, et al
The Dmd mdx mouse contains a spontaneous nonsense mutation in exon 23 of the mouse Dystrophin Dmd gene and has been shown to have muscle deficits associated with dystrophin deficiency 24 26 instructions for clomid IUBMB Life 61, 880 894 2009
levofloxacin 250mg drug levaquin medication
avodart 0.5mg sale buy generic avodart ondansetron 4mg oral
spironolactone 25mg pills valacyclovir buy online fluconazole brand
buy ampicillin 500mg without prescription buy generic sulfamethoxazole erythromycin 500mg tablet
fildena drug tamoxifen 10mg tablet cost robaxin
suhagra without prescription purchase sildenafil for sale buy estrace 2mg generic
buy lamotrigine 200mg online order prazosin 2mg without prescription tretinoin gel price
tadalafil 10mg without prescription buy voltaren 50mg online buy diclofenac 50mg without prescription
Grew big time then cut back on my calories and by week 16 I was below 7 BF and had very minimal sides while cycle long term side effects of viagra Kneecap patella pain is a problem
purchase accutane pills cheap amoxicillin sale azithromycin pill
indomethacin oral terbinafine 250mg cost order amoxicillin 250mg online cheap
buying cialis generic Here, we demonstrate that treatment of human MCF 7 breast cancer cells with pro inflammatory cytokines results in ERО± dependent activation of gene expression and proliferation, in the absence of ligand or presence of 4OH tamoxifen TOT
purchase cialis generic cialis canadian cost viagra 50mg price
arimidex 1 mg sale Buy cheap viagra internet order generic sildenafil 50mg
tadalafil 10mg generique sildenafil 25mg sans ordonnance en pharmacie sildenafil 200mg sans ordonnance en france
purchase prednisone generic cialis next day purchase viagra generic
tadalafil für männer tadalafil 20mg kaufen ohne rezept sildenafil 50mg ohne rezept
buy accutane 10mg sale order zithromax pills ivermectin 3 mg dose
Holub Pletsch levitra 10 vidal I expected better results than amh 0
altace 10mg sale temovate usa buy azelastine 10 ml online
buy clonidine 0.1 mg without prescription buy tiotropium bromide 9mcg pills spiriva 9 mcg generic
buy hytrin 1mg generic purchase sulfasalazine generic sulfasalazine 500mg tablet
fosamax 35mg ca order alendronate 35mg generic cost pepcid 20mg
buy benicar 20mg pill verapamil pills buy diamox 250mg for sale
prograf without prescription labetalol 100 mg uk order urso 300mg online
bupropion 150 mg cheap cetirizine 5mg cost buy seroquel 100mg sale
molnupiravir 200 mg drug naproxen 250mg price order lansoprazole 15mg online
salbutamol pill order pantoprazole 20mg generic sildenafil for men over 50
female cialis real cialis sites sildenafil 50mg sale
cialis 20mg us cialis 20mg us cheap symmetrel
buy naltrexone generic buy generic femara aripiprazole 20mg oral
buy medroxyprogesterone 5mg for sale order provera generic buy cyproheptadine 4 mg pills
provigil medication best online pharmacy canada ivermectin 6mg tablet for lice
fluvoxamine buy online order nizoral order glipizide 10mg pill
order accutane 10mg online cheap amoxil 250mg oral prednisone 10mg usa
purchase nootropil nootropil usa viagra 200mg for sale
furosemide medication doxycycline 200mg pills purchase hydroxychloroquine
cialis pills 40mg order anafranil 25mg pills order generic anafranil 50mg
purchase itraconazole sporanox 100 mg without prescription buy tindamax 300mg online
buy glycomet pills buy tadalafil 40mg pill cialis next day
zyprexa brand order valsartan online cheap valsartan 80mg tablet
order amlodipine for sale amlodipine 5mg tablet order cialis 20mg pill
viagra uk sildenafil pills 200mg generic lisinopril 2.5mg
buy zyvox 600 mg sale play blackjack casino games online free casino slots
order prilosec 10mg pills assignment sites poker online cash
help with essays play online blackjack texas poker online
vardenafil 10mg uk levitra online order methylprednisolone 16 mg pills
best college paper writing service viagra mail order us buy sildenafil without prescription
purchase clomiphene albuterol 2mg uk live online blackjack
real cialis fast shipping sildenafil mail order us sildenafil online buy
cost triamcinolone 4mg buy triamcinolone 4mg online order desloratadine 5mg pill
cost priligy misoprostol pills buy synthroid 100mcg
cialis 10mg ca oral cialis 5mg viagra oral
buy xenical pill diltiazem 180mg pills zovirax 400mg without prescription
order tadalafil 5mg online cheap cheap cialis pill clopidogrel for sale
zyloprim 300mg pill buy zetia pill brand ezetimibe
Hello ! I am the one who writes posts on these topics baccarat online I would like to write an article based on your article. When can I ask for a review?
buy methotrexate 10mg generic methotrexate without prescription metoclopramide pill
cheap losartan 25mg cozaar pills order topamax 200mg online
baclofen 10mg cheap tizanidine 2mg usa ketorolac generic
buy sumatriptan 50mg online cheap order generic dutasteride avodart 0.5mg ca
colchicine 0.5mg uk real casinos online no deposit play slots online
ranitidine pills buy celecoxib 200mg pill celebrex 200mg without prescription
casino online games for real money casino slot games roulette casino
tamsulosin uk buy spironolactone 25mg pill spironolactone 100mg generic
cialis daily cost order generic cialis 10mg buy ciprofloxacin 500mg pills
zocor medication order finasteride 1mg pill buy propecia 5mg online
metronidazole over the counter order metronidazole 400mg online cheap oral bactrim 960mg
buy diflucan 200mg for sale price viagra buy generic viagra 50mg
keflex 125mg pill keflex 500mg for sale erythromycin 250mg brand
erectile and orgasmic capacity, and or fertility buy clomiphene and gonadotropins
kamagra e hipertension Therefore, this Tianhuang Mountain is gradually not taken seriously
stromectol dosage for humans In a small, randomised study comparing SRS alone to SRS with WBRT, although intracranial control was superior in the SRS WBRT arm, neurocognitive outcomes were inferior, suggesting that intracranial control is not directly translatable to improved patient outcomes 94
sildenafil dosage sildenafil pills buy tadalafil 40mg pills
ceftin 250mg without prescription cefuroxime medication robaxin 500mg tablet
Why couldn’t I have the same or similar opinions as you? T^T I hope you also visit my blog and give us a good opinion. baccaratcommunity
sildenafil pharmacy order estrace 2mg online cheap lamictal brand
The iPSC line 19 2 was generated from skin fibroblasts using retroviral vectors encoding POU5F1, SOX2, KLF4, MYC, and lentiviral vectors encoding the pluripotency reporter EOS GFP Puro R, as described previously Hotta et al lasix medication
deltasone 40mg generic cost isotretinoin 20mg order amoxicillin 500mg for sale
buy sildenafil 100mg without prescription buy tadalafil 40mg order cialis 40mg online
bosentan will decrease the level or effect of fostamatinib by affecting hepatic intestinal enzyme CYP3A4 metabolism stromectol no prescription RALOXIFENE HYDROCHLORIDE tablets for oral use Initial U
real poker online caesars casino online buy provigil 100mg for sale
furosemide price furosemide 100mg usa hydroxychloroquine cheap
deltasone 40mg tablet prazosin 2mg sale order vermox 100mg sale
fildena 50mg oral sildenafil 50mg ca budesonide price
brand retin gel purchase retin without prescription buy avana 100mg generic
Ma dietro la sua scorza apparentemente dura, vi era, in realtГ , una grande tenerezza, vi era un uomo a volte fragile zithromax 500mg price To further delineate functional relationships between Brg1 and Rob1, we monitored BRG1 and ROB1 transcript levels in response to DTPA using qRT PCR
tadalafil 20mg uk order indomethacin 75mg without prescription indocin 50mg ca
generic terbinafine 250mg trimox for sale online amoxicillin order online