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FHA Loans

Get a mortgage with a lower credit score and smaller down payment.

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FHA Mortgage Rates

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What To Know About FHA Loans

Who Are FHA Loans Best For?

An FHA loan might be a good option for you if:

  • You have fair credit.
  • You want to make a smaller down payment.
  • You have a steady income and plan to live in the home you’re buying.

How Do FHA Loans Work?

  • FHA loans are insured by the Federal Housing Administration, allowing lenders to offer loans with more lenient financial requirements.
  • Borrowers must pay closing costs but can roll those fees into their loan amount. They also must pay an upfront and annual mortgage insurance premium.
  • Homes must pass an FHA-approved appraisal and meet minimum property standards.

How Do I Qualify For A 30-Year Fixed-Rate FHA Loan?

  • Minimum 3.5% down payment with a credit score of at least 580
  • Minimum 10% down payment with a credit score of at least 500
  • A debt-to-income ratio below 43%, depending on the lender
  • Must pay closing costs, typically 3% – 6% of the purchase price

2026 FHA Loan Limits

Each year, the Department of Housing and Urban Development (HUD) updates the FHA loan limits, which are calculated as 65% of the loan limits for conforming loans. Below are the 2026 FHA loan limits by property size (measured in number of units), accounting for the limit floor and ceiling and addressing special areas like Alaska and Hawaii.

Property SizeLimit Floor (Lower-Cost Areas)Limit Ceiling (High-Priced Areas)Special Areas (Alaska, Hawaii, Guam and the U.S. Virgin Islands)
Single family$541,287$1,249,125$1,873,625
Duplex$693,050$1,599,375$2,399,050
3 Units (Triplex)$837,700$1,933,200$2,899,800
4 Units (Quadplex)$1,041,125$2,402,625$3,603,925

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FHA Loan Benefits

  • Lower down payment requirements (as low as 3.5%)
  • Option to select between a 15-year or 30-year loan
  • Offers a fixed or variable rate (adjustable rate)
  • Individuals with a lower credit score may qualify
  • Closing costs can be rolled into the loan
  • Can use an FHA Streamline to refinance with minimal documentation

FHA Property Requirements

  • FHA loan amounts may not exceed the loan limit in your area. HUD provides an online tool that allows you to look up the loan limits in your area.
  • The home and property must meet the FHA’s minimum standards for safety, security and structural integrity.
  • You must move into the home within 60 days of closing.
  • The home must be your primary residence. Investment properties and second homes do not qualify for FHA loans.

Frequently Asked Questions

Explore the most common questions about FHA loans and get the answers you need.

FHA loans are typically cheaper than conventional loans for borrowers with lower credit scores. A conventional loan is often cheaper if you have a credit score of at least 620.
Yes. Mortgage insurance is required for all FHA loans. However, if you make a down payment of at least 10%, you can stop paying the premium after 11 years.
If your credit score is at least 580, you’ll need a 3.5% down payment. If your credit score is between 500 and 579, you’ll need a 10% down payment.

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