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eHub Financial

1-800-757-1826

  • About
  • Mortgages
    • New Mortgage
    • Second Mortgage
    • FHA Loans
  • Refinance
  • VA Loans
  • Bank Statement Loans
  • DSCR Loans
  • Log In

FHA Loans

FHA Loans: A Smart Path to Affordable Homeownership

If you’re a first-time homebuyer or someone with a limited credit history, an FHA loan could be the key to making your homeownership dreams come true. Backed by the Federal Housing Administration (FHA), these loans are designed to make buying a home more accessible with lower credit and down payment requirements.

What is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration. This government backing gives lenders the confidence to approve borrowers who might not qualify for conventional loans. FHA loans are popular among first-time homebuyers because of their flexibility and affordability.

Key features include:


  • Low Down Payment Requirements: As little as 3.5% for buyers with a credit score of 580 or higher.
  • Flexible Credit Standards: Borrowers with credit scores as low as 500 may still qualify (with a higher down payment).
  • Competitive Interest Rates: Often comparable to conventional loans.

Why Choose an FHA Loan?

Have Limited Savings

The low down payment requirement makes buying a home more achievable.

Have A Low Credit Score

FHA loans are more forgiving of past financial difficulties or limited credit history.

Want Affordable Closing Costs

FHA loans allow sellers to contribute up to 6% of the home’s purchase price toward closing costs.

Need Financing for a Fixer-Upper

FHA 203(k) loans let you roll renovation costs into your mortgage.

How to Qualify for an FHA Loan

Credit Score

Debt-to-Income Ratio (DTI)

Debt-to-Income Ratio (DTI)

  • 580+ for a 3.5% down payment
  • 500-579 for a 10% down payment

Debt-to-Income Ratio (DTI)

Debt-to-Income Ratio (DTI)

Debt-to-Income Ratio (DTI)

A DTI of 43% or lower is preferred, though higher ratios may be accepted with strong compensating factors.

Steady Income

Debt-to-Income Ratio (DTI)

Mortgage Insurance

A consistent employment history or proof of stable income is essential.

Mortgage Insurance

Primary Residence Requirement

Mortgage Insurance

FHA loans require both upfront and annual mortgage insurance premiums (MIP)

Primary Residence Requirement

Primary Residence Requirement

Primary Residence Requirement

FHA loans are only available for homes you’ll live in as your primary residence.

What You’ll Need to Apply

Proof of Income

Proof of Income

Proof of Income

Recent pay stubs, W-2s, or tax returns.

Assets

Proof of Income

Proof of Income

Bank statements showing savings for the down payment and closing costs.

Credit History

Debt Information

Debt Information

Authorization for a credit check

Debt Information

Debt Information

Debt Information

Details about any existing loans or financial obligations.

Pros and Cons of FHA Loans

Pros:

Pros:

Pros:

  • Low down payment and credit requirements
  • Easier qualification compared to conventional loans
  • Competitive interest rates
  • Can include renovation costs (with an FHA 203(k) loan)

Cons:

Pros:

Pros:

  • Upfront and annual mortgage insurance premiums (MIP) increase costs
  • Loan limits vary by location and may not cover high-value homes
  • Primary residence requirement only

Ready To Learn More?

Contact us today, so we can answer all your questions about FHA loans!

Get Started

Learn How An FHA Loan Helped Mark and Jenna Buy Their First Home

Mark and Jenna were excited to buy their first home but had a credit score of 620 and only $8,000 saved for a down payment. Here’s how an FHA loan made homeownership possible for them:


  1. Low Down Payment: With a 3.5% down payment, they only needed $7,000 for their $200,000 home.
  2. Flexible Credit Requirements: Their 620 credit score was well within the FHA’s guidelines.
  3. Seller Contributions: The seller covered 3% of their closing costs, reducing their upfront expenses.


Mark and Jenna moved into their new home with confidence, knowing the FHA loan had made it all possible.

Get Your Free Quote Today!

No strings attached, and no hard inquiry on your credit.

Get Quote

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contact@ehubfinancial.com

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