FHA Loan

What is a FHA loan?

FHA loans are mortgage loans offered by the Federal Housing Administration (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD). A wider range of borrowers can purchase a home with the help of FHA loans, especially those with low credit scores or limited down payments.

Key features of
FHA loans include:

Low Down Payment

One of the main advantages of FHA loans is their low down payment requirement. Borrowers may be able to qualify with a down payment as low as 3.5% of the home’s purchase price. This is beneficial for individuals who don’t have a large amount of savings for a down payment.

Flexible Credit Requirements

FHA loans are more lenient when it comes to credit requirements compared to many conventional loans. Borrowers with lower credit scores may still qualify for an FHA loan, although specific credit score requirements can vary by lender.

Mortgage Insurance Premium

FHA loans require borrowers to pay an upfront mortgage insurance premium (UFMIP) at the time of closing, as well as an annual mortgage insurance premium (MIP) that is included in their monthly mortgage payments. This insurance protects the lender in case the borrower defaults on the loan.

Higher Debt-to-Income Ratios

FHA loans may allow higher debt-to-income ratios (the percentage of your monthly income that goes toward debt payments) compared to conventional loans. This can be beneficial for borrowers with moderate income levels.

Assumable Loans

FHA loans are assumable, which means that if a borrower decides to sell their home, the buyer can take over the existing FHA loan. This feature could be advantageous if interest rates have risen since the original loan was taken out.

Property Requirements

FHA loans have property requirements to ensure the home’s safety and habitability. Homes financed with FHA loans must meet certain minimum standards, and the FHA may require repairs or improvements to be made before the loan is approved.

Variety of Loan Types:

FHA offers a range of loan types, including fixed-rate and adjustable-rate mortgages, as well as specialized options like FHA 203(k) loans for home improvements and FHA 203(h) loans for disaster victims.

Primary Residence

FHA loans are intended for borrowers to purchase their primary residence, meaning the home they plan to live in. They generally cannot be used to purchase investment properties or vacation homes.


You can start the application process on our website by filling out the form online, setting up a loan consultation appointment, or calling us on the phone. There is not an application fee.
Your borrowing capacity depends on your income, expenses, creditworthiness, and the type of loan you’re applying for. We’ll work with you to find a loan amount that works with your budget and your comfort level.
We will typically work through this together. You will want to lock in once you are under contract on your home and your loan has been uploaded to the lender.
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Yes, you can make extra payments and even pay off your mortgage early. If you are paying off your mortgage you can do so after making six monthly payments without a penalty.
Closing costs include fees for services such as title company costs, setting up your escrow account (property taxes and insurance), origination fees from lender for underwriting, etc. We typically have the lender pay our origination fee to help keep your closing costs lower.
We offer a range of home loan options, including Conventional, FHA, VA, USDA, Jumbo, Bank Statement, Asset Qualifier, Refinance, Reverse Mortgage, and so many others. Each loan type has unique features to suit different financial situations. Let our expertise guide you to find the one that is right for you.
Loan Approval: You receive final approval from the lender (clear to close). Closing: The final paperwork is signed by all parties and the loan is then funded and recorded.
As mortgage brokers we have access to 60+ wholesale lenders providing you with multiple options for all your home buying needs with lower rates and exceptional service. At Loans By Vicky, we stay in constant contact with you throughout the entire process. We are still here for you even after you close. We love making friends one mortgage at a time!

Get Pre-Approved quickly for your FHA loan through our app!

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