FHA LOANS

A great option if your credit isn't perfect or your down payment is limited.

FHA loans are backed by the Federal Housing Administration, which allows lenders to offer more flexible qualifying requirements. If you've had some credit challenges or haven't had time to save a large down payment, FHA is a helpful path into homeownership when conventional financing isn’t the best fit yet.

What you generally need:

• Credit score of 580+ for 3.5% down

• Credit score of 500-579 with 10% down

• Debt-to-income ratio up to 50% in some cases

• Mortgage insurance is required for the life of the loan in most cases

Down payment assistance programs may be available to reduce your out-of-pocket requirement — in some cases bringing it down to zero. Ask me what's available in your area.

Good fit for: First-time buyers, buyers rebuilding credit, or anyone who needs more flexibility on the qualifying side. Just know that mortgage insurance doesn't automatically go away with FHA the way it does with conventional — that's worth factoring into your long-term plan.

The tradeoff: FHA requires mortgage insurance for the life of the loan, so it’s important to look at both short-term affordability and long-term cost.

Not sure if FHA or conventional makes more sense for you? That's exactly the kind of question I can help you work through.