FHA Loans

FHA loans are often the best choice for first-time homebuyers or buyers with less than perfect credit. They are insured by the Federal Housing Administration as the borrower pays an up-front mortgage insurance premium, which may be and typically is financed, and monthly mortgage insurance included in the monthly house payment. The mortgage insurance is typically paid for the duration of the loan. Loan limits apply depending on the location of the property.



Our Most Popular Home Loan Options

FHA Features


Down Payment

FHA loans allow as little as 3.5% down payment and 100% of your down payment can be gift from family. Down payment assistance programs are also available to provide down payment and help with closing costs as well.


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Employment and other regular monthly forms of income may be used to qualify. There are no income caps for an FHA loan and co-signers are acceptable to help with debt-to-income ratio if needed.


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Credit Score

Credit requirements for FHA loans are typically a little more lenient than for Conventional loans. Borrowers with lower credit scores or bankruptcy as recent as two years ago may be eligible for FHA.



Interest Rate

Fixed-rate and adjustable-rate FHA loans are available, as are loans to finance renovation or improvements to a property being purchased or a property already owned by the borrower. Rates for FHA loans are often lower than conventional for buyers with low or moderate credit scores.




FHA loans are available to purchase or refinance a principal residence with 1 to 4 units, including typical detached or attached homes, manufactured homes, modular homes and approved condos.FHA loans are also available to refinance a currently owned property, including a cash-out refi to pay other debt, and to refinance an existing FHA loan on a property that is now an investment property.




Closing costs may be paid by the seller, equivalent to up to 6% of the purchase price. Co-signers are acceptable for FHA loans when needed to improve debt-to-income ratios.


In conclusion

FHA loans are the best option for a lot of buyers, but not for everyone. This program may not be the best choice for buyers with excellent credit for example. Conventional loans are available with low down payments as well, and PMI may be cancelled when certain conditions are met. Buyers are not required to be first-time buyers, but FHA loans are very popular with first-time buyers.

For those who may need to improve their credit score to become eligible to qualify for a home loan, while also building up a savings for down payment, check out our RHB Credit Builder Program.