Get Into a Home With
as Little as 3.5% Down
FHA loans offer flexible credit requirements and low down payment options — making homeownership accessible to first-time buyers and others who may not qualify for conventional financing.
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Government-backed financing
built for accessibility.
3.5% minimum down paymentFor borrowers with a credit score of 580 or higher
Flexible credit standardsMore lenient than conventional — credit scores from 500 considered
Government-backedInsured by the Federal Housing Administration
Up to 96.5% LTVOn primary residence purchases
Gift funds allowedDown payment can come from gifts, grants, or DPA programs
Higher DTI toleranceDebt-to-income up to 57% with compensating factors
Streamline refinanceFHA-to-FHA refi with minimal paperwork, often no appraisal
Cash-out refinanceUp to 85% LTV on FHA cash-out transactions
No prepayment penaltiesPay ahead or refinance at any time
Program Snapshot
MIP rates are set by HUD and subject to change. Eligibility requirements vary by lender and loan scenario. All loans subject to credit and underwriting approval.
What Is an FHA Loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). The FHA doesn't lend money directly — it insures loans made by approved private lenders, reducing their risk and allowing them to offer more flexible terms to borrowers who might not qualify for conventional financing.
FHA loans are one of the most popular mortgage programs for first-time buyers, borrowers with lower credit scores, or those with limited savings for a down payment. Lendmire works with multiple FHA-approved wholesale lenders to find the right product and rate for your situation.
All FHA loans require mortgage insurance regardless of down payment. There are two components: an upfront MIP of 1.75% (typically financed into the loan) and an annual MIP of approximately 0.55% divided into monthly payments. Unlike conventional PMI, FHA MIP remains for the life of the loan if the down payment is less than 10% — a key distinction when comparing programs.
Purchase & Refinance Programs
FHA Purchase & Cash-Out Refinance
- 3.5% down with 580+ credit score
- 10% down with 500–579 credit score
- Up to 96.5% LTV on purchases
- Cash-out refinance up to 85% LTV
- Higher DTI tolerance vs. conventional
- Gift funds, grants, and DPA accepted for down payment
- Upfront MIP 1.75% + annual MIP applies
- FHA appraisal and property standards required
FHA Streamline Refinance
- Must refinance existing FHA loan into new FHA loan
- No appraisal required in most cases
- Limited income documentation required
- Must result in a net tangible benefit (lower payment or rate)
- Up to 97.75% LTV on rate-and-term refinance
- Reduced upfront MIP (0.01%) for qualifying loans
- No cash out permitted
- Faster, simpler process than standard refinance
Who Qualifies & Eligible Properties
Borrower Requirements
- Minimum credit score 580 (3.5% down) or 500 (10% down)
- Stable employment history — typically 2 years
- DTI generally up to 43–57% with compensating factors
- Must be purchasing a primary residence
- U.S. citizen, permanent resident, or eligible non-citizen
- Cannot be delinquent on federal debt
- Previous bankruptcy or foreclosure may still qualify with seasoning
Eligible Property Types
- Single-family homes
- FHA-approved condominiums
- 2–4 unit properties (one unit owner-occupied)
- Manufactured homes meeting FHA standards
- Townhomes and row homes
- Must meet FHA Minimum Property Requirements (MPRs)
- FHA appraisal required — separate from home inspection
More buyers qualify.
More paths to homeownership.
3.5% down opens the door to homeownership for buyers who haven't had years to build savings — and that down payment can come from gifts or assistance programs
FHA allows credit scores as low as 500 — giving buyers with past credit challenges a realistic path to approval that conventional programs often won't offer
Debt-to-income ratios up to 57% with compensating factors — more room for buyers who carry student loans, car payments, or other debt
Family gifts, employer assistance, and down payment assistance programs can all be used to cover the minimum 3.5% — no personal savings required
When rates drop, the FHA Streamline makes refinancing fast and simple — often without an appraisal or full income re-verification
FHA pairs naturally with down payment assistance programs — including Lendmire's Boost DPA — for buyers who need help with upfront costs
Lendmire complies with all federal and state mortgage regulations. FHA loan eligibility is subject to credit approval, income documentation, property eligibility, and HUD underwriting guidelines. FHA mortgage insurance premiums (MIP) are set by HUD and are subject to change. Upfront MIP may be financed into the loan amount.
A Loan Estimate (LE) will be provided upon submission of a completed application and required documentation. Lendmire is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA, or the Federal Government. Lendmire LLC — NMLS #2371349. This is not a commitment to lend. All loans subject to credit and collateral approval.
News, guides &
market updates.
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March 5, 2026Check your FHA loan
eligibility today.
In about 30 seconds you can review FHA financing options available for your home purchase. No commitment required.
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