Get an affordable down payment when you buy with an FHA loan.
Qualify with a lower credit score- Put down less at the closing table
- Achieve your dream of homeownership
Why choose AmeriSave for an FHA loan?
Higher Chance Of Approval
Get approved even with past credit issues or higher debt amounts.
Lower Interest Rates
See if you can qualify for a lower rate than other types of home loans.
Smaller Down Payments
Keep more money in your pocket with a low 3.5% down payment.
Trusted Expertise
Over 730K clients. 23 years’ experience. One goal: helping you build a brighter future.
Smarter technology. Real numbers.
Get Personalized Loan OptionsSee your best loan options with technology that analyzes your finances in real time.
Flexible Loans And TermsPick the right loan and term that helps you achieve your unique homeownership goals.
Close Your Loan QuicklyGet approved and funded quickly, so you can enjoy your new financial freedom.
Get Personalized Loan Options
See your best loan options with technology that analyzes your finances in real time.
Flexible Loans And Terms
Pick the right loan and term that helps you achieve your unique homeownership goals.
Close Your Loan Quickly
Get approved and funded quickly, so you can enjoy your new financial freedom.
A federally insured path to homeownership.
FHA loans are insured by the Federal Housing Administration, allowing lenders to offer financing to borrowers with lower credit scores and smaller down payments.
Confirm FHA Eligibility
Most borrowers need a 580+ credit score (FICO) for the 3.5% down option (10% down for 500–579). The home must meet The Department of Housing and Urban Development (HUD)'s minimum property standards.
Get Your Rate Quote
FHA rates are typically competitive because they’re backed by federal insurance. Apply online for your personalized FHA loan options.
Close On Your Timeline
FHA appraisals can extend the timeline slightly versus conventional loans. Most FHA purchases close in 30 to 45 days.
Pay Your Fixed Payment And MIP
Your monthly payment includes principal, interest, taxes, insurance, and the FHA mortgage insurance premium (MIP). Same payment every month for the entire loan (excluding taxes and insurance).
Built for accessibility, backed by HUD.
FHA loans require just 3.5% down with a 580 FICO. The down payment can come entirely from gifts. Mortgage insurance is required, but it's what makes the low down payment possible.
Who Benefits Most From An FHA Loan
FHA loans are insured by the federal government to expand access to homeownership for buyers who don't fit conventional underwriting.
First-Time Home Buyers
The 3.5% down payment and flexible credit standards make FHA the most accessible path to a first home for many buyers.
Lower Credit Score Borrowers
FHA accepts FICO scores as low as 500 with 10% down, well below the conventional minimum.
Higher Debt-To-Income Borrowers
FHA's flexible DTI standards help buyers with student loans, car loans, or other debt qualify for more home.
Buyers Using Gift Funds
The full down payment and closing costs can come from gift funds from family, broader than conventional rules.
FHA Loan Requirements
FHA underwriting is more flexible than conventional, but specific minimums still apply.
580+ for 3.5% down; 500–579 with 10% down. These are the federal floors; individual lenders may set higher minimums.
Up to 50%+ with compensating factors, well above most conventional limits.
3.5% with 580+ FICO; the full down payment can come from gift funds.
Must be a primary residence that meets HUD's minimum property standards; FHA loan limits apply by county.
FHA vs. Conventional Loan
FHA loans open the door to homeownership for buyers who'd struggle to qualify for conventional financing at the cost of mortgage insurance.
Pros And Cons of An FHA Loan
FHA loans deliver access where conventional financing falls short, but the mortgage insurance can outlast the loan term.
What Works In Your Favor
Low Down Payment
Just 3.5% down with a 580 FICO; 10% down with as low as 500.
Flexible Credit Requirements
Approval possible with past credit issues, including bankruptcy or foreclosure after the required waiting periods.
Higher DTI Allowance
Up to 50%+ in some cases, with compensating factors like reserves or strong credit.
Gift Funds Allowed
Down payment and closing costs can come entirely from family gifts.
Assumable
Future buyers may be able to assume your FHA loan at your existing rate - a major advantage when rates are higher than your locked rate.
What To Weigh Carefully
Mortgage Insurance Often Lasts The Loan's Life
Annual MIP continues for the entire term when you start at less than 10% down, even after you've built substantial equity. With 10%+ down, MIP cancels after 11 years; most FHA borrowers don't put down 10%, so plan for lifetime MIP.
Upfront Mortgage Insurance Premium
1.75% of the loan amount due at closing (financeable, but still a real cost).
Property Standards
The home must meet HUD's minimum property standards. Fixer-uppers may need repairs before close.
Lower Loan Limits
FHA county limits are generally below conforming limits, capping how much home you can buy.
Primary Residence Only
FHA loans aren't available for investment properties or second homes.
Frequently Asked Questions
An FHA loan is a government-backed mortgage that lets people with less-than-ideal credit buy a home with as little as 3.5% down. Continue Reading...
FHA home loans open doors for home buyers who might struggle with conventional mortgages. You’ll likely qualify with a 580+ credit score (3.5% down) or even 500-579 (10% down). If you have a steady income and meet your lender’s debt-to-income and credit score requirements, FHA home loans might be for you.
FHA loans and FHA refinance loans are government-backed mortgages with looser credit requirements (as low as 500) and lower down payments (as low as 3.5%). The lower down payment amount requires buyers to carry mandatory mortgage insurance for the loan’s lifetime. Conventional loans require better credit (620+) but don’t have insurance requirements with 20% down. Conventional loans also work for more than just primary residences.
Here’s a breakdown of the pros and cons of an FHA loan:
Pros of an FHA Loan:
- Lower credit score requirements allow more borrowers to qualify for homeownership
- Minimum down payment of just 3.5% reduces initial out-of-pocket expenses
- More forgiving approach to credit history issues and past financial challenges
Cons of an FHA Loan:
- Mandatory mortgage insurance remains for the entire loan term in most cases
- Loan limits may restrict purchasing power in higher-priced housing markets
- Properties must meet specific HUD standards, limiting options for homes needing repairs