FHA 30-Year Mortgage Loan

FHA loans are insured by the Federal Housing Administration, which comes under the US Department of Housing and Urban Development (HUD). This means that if the homeowner is unable to repay the loan, the lender is secured from losses. To better understand the eligibility criteria and program details, you can start by speaking to one of our seasoned experts.

Based on the borrower's credit score, the home buyer is allowed to borrow a percentage of the property's value:

• Credit Score 580 or more: Can borrow 96.5% of the property's value with a 3.5% down payment
• Credit Score 500-579: Can borrow 90% of the home's value with a 10% down payment

• An FHA appraiser must approve the property.
• The FHA loan is available only for the primary residence.
• The borrower should move into the property within 60 days of closing the loan.
• The property has to meet the required minimum property standards during the inspection.
• The borrower must be a permanent resident of the U.S. or hold specific eligible statuses (U.S. citizen, lawful permanent resident) to be eligible for an FHA loan as of May 25, 2025.

MIP is a must for FHA loans. It's typically charged upfront, usually about 1.75% of the loan's value. An annual MIP is also charged, usually between 0.15% and 0.75% of the loan's value. MIP needs to be paid throughout the loan's life, with some exceptions.

Understanding the requirements for an FHA 30-Year Fixed Mortgage can help you determine if this loan is right for you.

Credit scores as low as 500 may qualify, but scores of 580 or higher get better terms. Debt-to-income ratio (DTI) is also considered, with some flexibility for higher credit scores.

While there are no specific income limits, borrowers must establish a sound employment history. Documentation like tax returns, bank statements, pay stubs, and W-2s are required.

Loan limits vary by county. As of 2024, the limit in high-cost areas is $1,149,825, while in low-cost areas for 1-unit properties, it's $498,257.

FHA interest rates are typically lower compared to conventional loans. Rates depend on factors like credit score, income, down payment amount, and DTI.