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What is an FHA loan?

Quick answer

An FHA loan is a mortgage insured by the Federal Housing Administration. It lets you buy a primary home with 3.5% down and a credit score as low as 580 (or 10% down with 500–579). You'll pay an upfront mortgage insurance premium of 1.75% plus an annual premium, and the loan must stay under county FHA limits.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated
Min. down: 3.5%Min. credit: 580

Who is an FHA loan best for?

FHA is designed for buyers with modest savings or credit that's still being built. Because the government insures the lender against loss, lenders can approve borrowers they might otherwise decline.

  • Credit scores between 580 and 680.
  • Debt-to-income ratios up to about 50% with compensating factors.
  • Buyers using gift funds for the entire down payment.
  • Buyers who had a bankruptcy 2+ years ago or foreclosure 3+ years ago.

How much does FHA mortgage insurance cost?

The upfront premium (UFMIP) is 1.75% of the base loan amount and is usually rolled into the loan. The annual premium for most 30-year loans is 0.55% of the balance, paid monthly. With less than 10% down, annual MIP lasts for the life of the loan; with 10% or more, it ends after 11 years. Many owners later refinance into a conventional loan to drop MIP.

What are the FHA loan limits?

FHA limits are set by county. For 2026, the one-unit 'floor' in lower-cost areas is $541,287 and the ceiling in high-cost areas is $1,249,125. Limits are higher for 2–4 unit properties.

FHA property requirements

An FHA-approved appraiser checks that the home is safe, sound and secure. Issues such as peeling paint in older homes, missing handrails or a failing roof may need to be repaired before closing.

FHA loans by state

FHA loans in AlabamaFHA loans in AlaskaFHA loans in ArizonaFHA loans in ArkansasFHA loans in CaliforniaFHA loans in ColoradoFHA loans in ConnecticutFHA loans in DelawareFHA loans in District of ColumbiaFHA loans in FloridaFHA loans in GeorgiaFHA loans in HawaiiFHA loans in IdahoFHA loans in IllinoisFHA loans in IndianaFHA loans in IowaFHA loans in KansasFHA loans in KentuckyFHA loans in LouisianaFHA loans in MaineFHA loans in MarylandFHA loans in MassachusettsFHA loans in MichiganFHA loans in MinnesotaFHA loans in MississippiFHA loans in MissouriFHA loans in MontanaFHA loans in NebraskaFHA loans in NevadaFHA loans in New HampshireFHA loans in New JerseyFHA loans in New MexicoFHA loans in New YorkFHA loans in North CarolinaFHA loans in North DakotaFHA loans in OhioFHA loans in OklahomaFHA loans in OregonFHA loans in PennsylvaniaFHA loans in Rhode IslandFHA loans in South CarolinaFHA loans in South DakotaFHA loans in TennesseeFHA loans in TexasFHA loans in UtahFHA loans in VermontFHA loans in VirginiaFHA loans in WashingtonFHA loans in West VirginiaFHA loans in WisconsinFHA loans in Wyoming

Frequently asked questions

FHA rules allow scores of 500–579 with 10% down, but many lenders set their own minimum around 580–620.

No. Any buyer purchasing a primary residence can use FHA, though you can usually have only one FHA loan at a time.

Yes. The entire 3.5% can come from a documented gift from a family member, employer, union or approved charitable organization.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.