How it works
The Federal Housing Administration insures loans made by approved lenders. FHA insurance can help eligible buyers with a smaller down payment, while the lender still checks income, debts, credit, and the home.
From first check to loan choice
- 1
Check the home
Confirm the home will be your primary residence and falls within the applicable FHA loan limit.
- 2
Review your finances
The lender checks income, debts, credit, down payment, and allowed sources of funds.
- 3
Review the appraisal
An FHA appraisal checks value and certain property standards before closing.
What affects your decision
Mortgage insurance
FHA loans generally include an upfront premium and an annual premium paid monthly. Ask how long the monthly premium will last for your loan.
Cash to close
A low down payment does not eliminate closing costs, prepaid taxes, or insurance. Ask about eligible assistance or gift funds.
Property standards
The property must satisfy FHA requirements. Needed repairs can affect timing and approval.
Prepare for a conversation
Documents to have ready
Identification, income records, bank statements, purchase contract, and documentation for any gift funds.
Ask this question
How does the FHA payment, including mortgage insurance, compare with a conventional loan?
This page is general education. Program terms, rates, fees, and eligibility depend on the lender and your application.
Compare the whole cost
Ask for a personalized estimate showing the rate, APR, total monthly payment, cash to close, and fees. Then compare the options side by side.
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