An FHA loan is a mortgage insured by the Federal Housing Administration that generally allows a 3.5% minimum down payment with a credit score of 580 or higher (10% with scores from 500 to 579), accepts gift funds, and requires mortgage insurance. It's for primary residences, isn't limited to first-time buyers, and is subject to county loan limits. HUD guidelines change and lenders may add overlays — Matthew will confirm the current rules for your file.
How to use this FAQ
The 25 answers below are grouped so you can scan to the part that matters to you. They reflect general HUD guidelines from the FHA Single Family Housing Policy Handbook (HUD Handbook 4000.1). Lenders are allowed to add their own requirements on top of HUD's — called overlays — so the answer for your file may be stricter than the general rule.
- Questions 1–8: The basics. What this site is, down payment, credit, gifts, assistance, mortgage insurance, and who can use FHA.
- Questions 9–15: Qualifying. Co-borrowers, student loans, self-employment, debt-to-income, seller concessions, and loan limits.
- Questions 16–25: Property, credit history, and refinancing. Appraisals, condos, manufactured homes, multi-unit homes, bankruptcy and foreclosure, streamline and cash-out refinancing, assumptions, and licensing.
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The FHA numbers people ask about most
These are HUD program guidelines — not rates or loan terms — and they explain most FHA answers below.
| Guideline | General FHA rule |
|---|---|
| Minimum down payment | 3.5% with a 580+ credit score; 10% with a score from 500 to 579 |
| Minimum credit score | 500 (below 500 generally ineligible); lenders often set higher minimums |
| Seller / interested-party contributions | Up to 6% of the sales price toward eligible costs |
| Debt-to-income guideline | 31% housing / 43% total, with higher ratios possible with compensating factors or automated approval |
| Cash-out refinance maximum | 80% of appraised value |
| Streamline seasoning | 210 days after closing and six payments made |
| Property type | 1–4 units, owner-occupied |
Mortgage insurance amounts aren't listed here because they depend on the loan; the FHA mortgage insurance page explains how MIP works.
Want a straight answer for your situation? Skip the call center — Matthew will review your credit, budget, and FHA options himself.
Talk with MatthewThree FHA misconceptions to drop
“FHA is only for first-time buyers.”
No. Repeat buyers can use FHA too, as long as the home will be their primary residence. See FHA for first-time buyers.
“FHA lends the money.”
No. Private lenders make FHA loans; FHA insures them. That's why lender overlays exist.
“FHA has income limits.”
The standard FHA loan has no income cap. Some assistance programs paired with FHA do.
Frequently asked questions
Is FHA Express Loans an FHA program?
No. FHA Express Loans is an independent educational website — not a loan program and not affiliated with HUD or the Federal Housing Administration. “Express” means express answers and direct access to Matthew Brown, a licensed mortgage broker. It doesn't describe a loan type or how long a loan takes.
What is the minimum down payment on an FHA loan?
Generally 3.5% of the purchase price with a credit score of 580 or higher. Borrowers with scores from 500 to 579 generally need 10% down. See FHA down payment.
What credit score do I need for an FHA loan?
FHA's guidelines allow scores down to 500, with 580+ needed for the 3.5% minimum down payment. Below 500 is generally ineligible. Many lenders set higher minimums, and borrowers with no score may qualify using nontraditional credit. See FHA credit score requirements.
Can my down payment be a gift?
Yes. FHA accepts documented gifts from relatives, employers, labor unions, close friends with a documented relationship, charitable organizations, and government agencies. Gifts can't come from the seller, builder, real estate agent, or anyone else with an interest in the sale. A gift letter and a paper trail are required.
Can I use down payment assistance with FHA?
Often, yes. Government and approved nonprofit programs can generally be used as an FHA funds source, subject to their own rules and lender participation. See Down Payment Assistance Guide or, in Texas, Texas DPA Programs.
Does an FHA loan have mortgage insurance, and can I get rid of it?
Yes. FHA charges an upfront mortgage insurance premium (usually financed) and an annual premium paid monthly. If your original down payment was at least 10%, the annual premium generally ends after 11 years; otherwise it generally lasts for the life of the loan. Many borrowers remove it later by refinancing into a conventional loan once they have enough equity. See FHA mortgage insurance.
Do I have to be a first-time home buyer?
No. FHA is open to repeat buyers as well, as long as the home will be your primary residence and you meet the guidelines.
Can I have more than one FHA loan at a time?
Generally no — FHA allows one FHA-insured primary residence loan at a time. Exceptions may apply for a job relocation beyond a reasonable commute, a growing family that has outgrown the home, or a co-borrower leaving a home that remains with the other borrower.
Can a family member who won't live in the home co-sign?
Generally, yes. FHA allows non-occupant co-borrowers, and family members can typically help a buyer reach FHA's standard financing levels. A non-family co-borrower generally means a larger down payment. At least one borrower must live in the home.
How are student loans counted on an FHA loan?
The lender uses the monthly payment shown on your credit report or loan documents. If the reported payment is zero — for example, during deferment — FHA generally uses a calculated amount based on a percentage of the balance instead. Matthew can show how your student loans will be counted.
Can I get an FHA loan if I'm self-employed?
Yes. Self-employed borrowers generally need a two-year history of self-employment documented with tax returns, though a shorter history may be accepted with prior experience in the same line of work. Income is typically averaged, and declining income gets a closer look.
What debt-to-income ratio does FHA allow?
The general guideline is 31% for housing expenses and 43% for total debts, with higher ratios possible when there are compensating factors or an automated underwriting approval. See FHA debt-to-income ratio.
Can the seller pay my closing costs?
Yes. Sellers and other interested parties can contribute up to 6% of the sales price toward eligible closing costs, prepaid items, and certain other expenses. They can't fund your minimum down payment.
Is there a minimum or maximum loan amount?
FHA sets maximum mortgage limits by county, updated each year, with different limits for 1–4 unit homes. Look yours up with HUD's FHA mortgage limits lookup or see FHA loan limits.
Should I compare FHA with a conventional loan?
Usually, yes. FHA tends to fit buyers with lower scores or higher debt ratios, while conventional loans may cost less in mortgage insurance for stronger credit profiles and allow that insurance to be removed. See FHA vs. conventional loans.
What does the FHA appraisal check?
The FHA appraiser estimates market value and checks the home against FHA's Minimum Property Standards for safety, soundness, and security — things like a roof with remaining life, working utilities, handrails, no active leaks, and no peeling paint in homes built before 1978. An FHA appraisal is generally valid for 180 days. See FHA appraisal and property requirements.
Can I use FHA to buy a condo?
Yes, if the project is on HUD's approved list (search with HUD's approved condominium search) or, in some cases, if the individual unit qualifies through FHA's single-unit approval process. See FHA condo loans.
Can I use FHA for a manufactured home?
Often. Generally the home must be built after June 15, 1976, carry HUD certification labels, sit on a permanent foundation meeting FHA guidelines, be titled as real property, and meet minimum size rules. Many lenders add overlays. See FHA manufactured home loans.
Can I buy a duplex, triplex, or fourplex with FHA?
Yes. FHA allows 1–4 unit properties when you live in one unit. Three- and four-unit homes have an additional self-sufficiency test on rental income.
How long after bankruptcy can I get an FHA loan?
Generally two years after a Chapter 7 discharge, or after 12 months of on-time Chapter 13 plan payments with trustee or court approval. Extenuating circumstances may shorten the wait. See FHA after bankruptcy or foreclosure.
How long after a foreclosure or short sale?
Generally three years after a foreclosure, deed-in-lieu, or short sale, with exceptions — for example, a short sale where you were current on the mortgage leading up to it. You also can't be delinquent on federal debt (checked through CAIVRS).
What is an FHA streamline refinance?
An FHA-to-FHA refinance with reduced documentation. It generally requires a net tangible benefit, a current mortgage, and seasoning of 210 days after closing with six payments made. FHA doesn't require an appraisal on the non-credit-qualifying version, though lenders may. See FHA streamline refinance.
How much cash can I take out with an FHA cash-out refinance?
Up to 80% of the home's appraised value, generally. You typically must have owned and lived in the home as your primary residence for 12 months with on-time mortgage payments. Texas homeowners have additional state rules. See FHA cash-out refinance.
Are FHA loans assumable?
Generally, yes. A creditworthy buyer who will occupy the home can assume an existing FHA loan with lender approval, and the seller can be released from liability. The buyer still has to cover the difference between the loan balance and the price.
Can Matthew help me in my state?
Matthew is licensed in multiple states, not all. Tell Matthew where you're buying and he'll confirm he can help there. You can verify licensing at NMLS Consumer Access.
Ask Matthew about your FHA home loan
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