FHA loans currently make up about 28% of all transactions in the US.  There are several reasons for this: 1) good interest rates, 2) lower credit score requirements, 3) low down payment of 3.5%. For the average American, these terms have attracted many buyers and current owners to look towards FHA as their financing choice.   

Other features of FHA:

  • higher debt ratios
  • competitive mortgage insurance
  • high loan limits ($625,500 in the Bay Area)
  • looser guidelines on gifts
  • higher cash out limits
  • 1-4 units qualify if owner-occupied

In many cases, FHA is avoided because of the mandatory monthly and upfront mortgage insurance premiums.  However, as FHA becomes more profitable, they have lowered these premiums in the last few years to compete with the conventional Fannie Mae and Freddie Mac loans to the point where a borrower with a below average score could have a lower overall payment with FHA than the equivalent conventional loan.

Contact us to see if a FHA loan is the right choice for you.

FHA Loans

Government loans can be a great option for a home loan for many repeat and first time homebuyers, and even refinances.  They offer softer guidelines where conventional and portfolio loans are strict.  Check out how these programs differ and might be the right fit for you.

Quick Links and references for FHA

FHA condo approval website:

  • Look up to see if your condo, or the one you are buying, is approved by FHA.  

FHA/HUD guidelines:  ‚Äč

  • Quick access to all FHA related Q&A.

FHA loan limits per county:

  • See what your loan amount can be.

Loan Programs: FHA-va-usda

What is the right loan for you?