FHA Loans

What is an FHA Loan?

FHA home loans are backed by the Federal Housing Administration. Because they are insured by the government, you are able to get a great loan and rate even if you don’t have the best financial history or credit score. In fact, FHA loans are most appealing to people with lower credit scores or who can’t put down a large down payment. These less stringent requirements are what interest many first-time home buyers who decide to pursue an FHA loan. 


For those who haven’t developed a financial history or credit score yet and may have limited money for a down payment, the FHA loan provides an opportunity for home ownership. If you are interested in a FHA loan, they can be obtained through any FHA-approved mortgage lender such as Brian the Lender.

FHA Loan Requirements

Who Qualifies for a FHA Loan?

FHA loans are good for those who might not have the best or longest credit history, but you’ll still need to meet some basic requirements. Proof of employment and a steady income are still necessary. Credit scores must be at least 580, but with a score of 640 or higher, you are afforded some further leniency with your debt-to-income, making this loan option even more forgiving. Although the loan helps those with low income or bad credit the most, any person who meets FHA loan qualifications can receive this type of loan. There are no limits on income. Anyone who had issues qualifying for a conventional loan may have less trouble with an FHA loan.

Benefits of FHA Home Loans

Many are able to benefit from an FHA loan because of its more forgiving qualifications, which you won’t find in a conventional loan. Credit score requirements are lower (starting as low as 580) compared to the 620 for a conventional loan. Higher debt to income ratios are allowed by this loan too, going as high as 57%, compared to the absolute highest 49% of a conventional loan. You are only required to put 3.5% down, which is less than the usual 5% minimum down payment (with the exception of first-time home buyers) for conventional loans.

Disadvantages of FHA Home Loans

Where FHA loans have less strict qualification requirements for the borrower, they have stricter requirements for the type of property. It has to be your primary residence, which means that vacation homes and investment properties are excluded. The property must also be deemed safe enough and structurally sound by an FHA appraiser in order for the property to be purchased with this loan type.


Possibly the most well-known and biggest disadvantage of an FHA loan is that the mortgage insurance that comes with an FHA loan lasts throughout the life of the loan. That means that in order to not pay the monthly premium for the entire 15 or 30 years, you would have to refinance out of the FHA loan into a conventional loan one day.

Applying for an FHA Loan

The first step to qualifying for an FHA loan is to choose an FHA-approved lender, and fill out an application. You will be asked for some documentation in order to get a preapproval letter. Have your realtor help you find a house that meets the FHA standards, and once your offer is accepted, the official application is submitted. All that’s left is to close the loan once fully approved.


If you would like to get an FHA loan or have any questions about other types of home loans, Brian the Lender can be contacted at 706-973-7933. He’ll walk you through the process and make sure that this loan is right for you.

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