FHA Loans: The First-Time Buyer's Best Friend
Just 3.5% down with a 580 credit score. Gift funds allowed. More forgiving of past credit issues. FHA loans have helped millions become homeowners—and I can help you be next.
"After my divorce, my credit dropped to 605 and I thought homeownership was years away. Emmett found me an FHA loan with just $12,000 down on a 3-bedroom townhouse in Austin. My daughter finally has her own room—and my monthly payment is actually less than I was paying in rent!"
Sandra M.
Single Mom • 605 Credit Score • Austin, TX
Today’s 30-Year Fixed FHA Rate
FHA – Primary Residence
Rate Assumptions
30 year fixed, $300k loan amount, $400k value, purchase, FICO Credit Score 759, Zipcode 95111
APR & Disclosures
The Annual Percentage Rate (APR) shown reflects the cost of credit over the loan term, including applicable fees, and is based on the assumptions above. Your actual rate and APR depend on your credit profile, loan amount, property, occupancy, and other factors. For information purposes only and does not constitute a loan approval or commitment to lend. Rates are subject to change without notice.
3.5%
Minimum Down Payment
580
Min Credit (3.5% down)
500
Min Credit (10% down)
100%
Gift Funds Allowed
What Is an FHA Loan?
FHA loans are mortgages insured by the Federal Housing Administration, a government agency within HUD. Because the government insures the loan against default, lenders can offer more flexible qualification requirements.
This makes FHA the go-to program for first-time homebuyers, those with limited savings, or anyone rebuilding credit after financial hardship. While FHA does require mortgage insurance (MIP), the tradeoff is access to homeownership that might otherwise be out of reach.
According to the U.S. Department of Housing and Urban Development, FHA has helped over 50 million Americans become homeowners since 1934.
FHA Benefits at a Glance
Low Down Payment
Just 3.5% down with 580+ credit. On a $300K home, that's only $10,500.
Flexible Credit
Scores as low as 500 can qualify (with 10% down). More forgiving of collections, late payments, and past bankruptcies.
Gift Funds Welcome
100% of your down payment can come from family gifts, employer programs, or down payment assistance.
Multi-Family Allowed
Buy 2-4 unit properties and live in one unit. Rental income can help you qualify.
Shorter Waiting Periods
Bankruptcy: 2 years. Foreclosure: 3 years. Shorter than conventional loans.
Understanding FHA Mortgage Insurance (MIP)
FHA loans require mortgage insurance premium (MIP)—both upfront and annual. Here's exactly what it costs and when it goes away.
Upfront MIP (UFMIP)
of the base loan amount, paid at closing
Example: $300,000 loan = $5,250 UFMIP
Usually rolled into the loan balance (no out-of-pocket)
Annual MIP
per year, divided into monthly payments
Example: $300,000 loan = $1,650/year = $138/month
Rate for most loans (30-year, >95% LTV). Run your own numbers with our FHA loan calculator.
When Does MIP Go Away?
For loans with less than 10% down: MIP lasts the life of the loan. The only way to remove it is to refinance into a conventional loan once you have 20% equity.
For loans with 10%+ down: MIP drops off after 11 years.
Do You Qualify for FHA?
Credit score, bankruptcy history, and down payment all affect your FHA eligibility. This quick quiz will give you an initial read—but the real answer comes from a proper pre-approval with credit pull.
FHA Requirements Summary
FHA Eligibility Quick Check
4 questions to see if you qualify
What's your current credit score (or best estimate)?
2026 FHA Loan Limits by State
FHA limits vary by county and apply to case numbers assigned on or after January 1, 2026. The one-unit national floor is $541,287 and the ceiling is $1,249,125 in high-cost areas. Alaska, Hawaii, Guam, and the U.S. Virgin Islands are special exception areas with a one-unit limit of $1,873,687. Here are limits for states where I'm licensed.
| State | Floor Limit | High-Cost Limit | High-Cost Areas |
|---|---|---|---|
| California | $541,287 | $1,249,125 | LA, SF, San Diego, OC |
| Hawaii | $1,249,125 | $1,873,687 | Special exception area (all counties) |
| Colorado | $541,287 | $879,750 | Boulder, Denver Metro |
| Washington | $541,287 | $1,063,750 | Seattle, Bellevue, Tacoma |
| Texas | $541,287 | $541,287 | Floor statewide |
2026 FHA Multi-Unit Property Limits
Buying a duplex, triplex, or fourplex with FHA? You can qualify with just 3.5% down as long as you occupy one unit as your primary residence. Rental income from the other units can help you qualify. See our multi-unit FHA financing deep dive for a full walkthrough.
| Property Size | Low-Cost "Floor" | High-Cost "Ceiling" |
|---|---|---|
| One-Unit | $541,287 | $1,249,125 |
| Two-Units | $693,050 | $1,599,375 |
| Three-Units | $837,700 | $1,933,200 |
| Four-Units | $1,041,125 | $2,402,625 |
Special Exception Areas (Alaska, Hawaii, Guam, U.S. Virgin Islands) have elevated limits due to higher construction costs: $1,873,687 (1-unit), $2,323,450 (2-unit), $2,808,325 (3-unit), and $3,490,300 (4-unit).
Source: HUD FHA Mortgage Limits. Limits above conforming amounts require Jumbo financing.
FHA + Down Payment Assistance by State
Many states offer down payment assistance (DPA) programs that work with FHA loans—some cover your entire 3.5%! Here are highlights from the 18 states where I'm licensed.
TDHCA My First Texas Home
Up to 5% DPA as grant or 0% loan
CalHFA MyHome
3.5% deferred-payment second
FL Housing HLP
0% deferred second mortgage
Home in Five / Home Plus
Up to 5% forgivable grant
PHFA K-FIT
Up to $6,000 forgivable
VHDA Plus Second
0% deferred second mortgage
CHFA DPA
Up to 4% as second mortgage
THDA Great Choice
Up to 6% forgivable DPA
KHC DAP
Up to $10,000 forgivable
I can help you stack FHA with state DPA programs for minimal out-of-pocket. Read our full DPA guide or get a personalized quote.
FHA vs. Conventional: Quick Comparison
| Feature | FHA | Conventional |
|---|---|---|
| Min Down Payment | 3.5% | 3% (first-time) |
| Min Credit Score | 500 (580 for 3.5%) | 620 |
| Mortgage Insurance | Required (MIP) | Required if <20% down |
| MI Removal | Life of loan (unless 10%+ down) | Cancels at 80% LTV |
| DTI Limit | Up to 57% | Up to 50% |
| Gift Funds | 100% allowed | 100% allowed |
| Property Types | 1-4 unit primary | 1-4 unit, 2nd home, investment |
Want the full breakdown? Read our ultimate 2026 guide to conventional vs. FHA loans to see exactly how the costs, credit requirements, and mortgage insurance compare over the life of the loan.
Not sure which is right for you? Take our loan finder quiz, talk to me directly, or ask Emmett.
FHA Loan FAQs
What credit score do I need for an FHA loan?
580+ for 3.5% down payment. 500-579 with 10% down. Below 500 doesn't qualify for FHA. These are HUD minimums—some lenders add 'overlays' requiring higher scores, but as a broker I can shop for lenders that go to the FHA minimum.
How much is FHA mortgage insurance (MIP)?
Upfront MIP is 1.75% of the loan amount (usually rolled into the loan). Annual MIP is 0.55% for most loans, divided into monthly payments. On a $300K loan, that's about $138/month. MIP lasts the life of the loan unless you refinance to conventional.
Can I use gift money for my FHA down payment?
Yes! 100% of your FHA down payment can come from gift funds—family, employer, or approved down payment assistance programs. The donor just needs to provide a gift letter stating no repayment is expected.
What's the FHA loan limit in my area?
FHA limits vary by county. For 2026 (case numbers assigned on or after January 1, 2026), the one-unit floor is $541,287 nationwide, and the high-cost ceiling reaches $1,249,125. Special exception areas (Alaska, Hawaii, Guam, and the U.S. Virgin Islands) go up to $1,873,687 for a single-family home. Multi-unit limits stretch up to $2,402,625 for a 4-unit in high-cost areas. Check the table above for your state, or I can look up your specific county.
Can I buy a condo or multi-family with FHA?
Yes to both! Condos must be on the FHA-approved list or get spot approval. Multi-family (2-4 units) qualifies if you live in one unit. This is a great house-hacking strategy—rent from tenants can help you qualify.
More questions? Check our complete FAQ or mortgage glossary.
From the blog & learning center
FHA Loans articles & guides
Deep Dive: Multi-Unit FHA
Use FHA financing to buy a 2-4 unit property and offset your payment.
Read more
Can You Buy a 5 to 8 Unit Property With an FHA Loan?
No. FHA financing caps at 4 units. A 5-unit-or-larger building is commercial and needs different financing. Here is why, and what to use instead.
Read more
FHA MIP Refund: Can You Get Your Upfront MIP Back?
Refinance your FHA loan into a new FHA loan within three years and you get part of your upfront MIP back, credited toward the new loan. Here is how it works.
Read more
Rate-and-Term vs Cash-Out Refinance: Which One Do You Need?
A rate-and-term refinance changes your rate or term; a cash-out replaces your loan with a larger one for cash. Learn which one fits your goal.
Read more
VA IRRRL and FHA Streamline: Refinancing Without the Full Process
A streamline refinance lowers your rate on an existing FHA or VA loan with no appraisal or income docs in most cases. Learn the IRRRL and FHA Streamline rules.
Read more
Buying a House After Bankruptcy: Real Waiting Periods by Loan Type
FHA and VA require 2 years after Chapter 7, USDA 3, conventional 4. Chapter 13 can qualify after 12 months of payments, and one program works during bankruptcy.
Read moreReady to Get FHA Pre-Approved?
I'll help you understand if FHA is right for your situation, find down payment assistance programs, and guide you through the entire process. Let's get you into your first home.
Have a question about FHA first? Ask Emmett →
Licensed in 18 states • NMLS #233747 • View all licenses
FHA Loans by State
Emmett is licensed across 18 states. Explore fha loans details, limits, and local programs for your state.