FHA Home Loans
What Is an FHA Loan?
FHA loans are insured by the Federal Housing Administration, a branch of HUD. They were created to make homeownership accessible for more Americans — particularly those with lower credit scores or limited savings.
Because the government guarantees the lender against loss, FHA loans have easier qualification standards, lower credit thresholds, and smaller down payments. Our veteran-owned mortgage company specializes in helping borrowers secure the best FHA loan terms. Use our mortgage calculators to estimate your monthly payment.
Benefits of an FHA Loan
Discover why FHA loans are the go-to choice for first-time homebuyers and those with flexible credit needs.
Low Down Payment
You can purchase a home with just 3.5% down if your credit score is 580 or higher.
Easier Credit Qualification
Even with past credit challenges or higher debt ratios, FHA underwriting guidelines are more forgiving than conventional.
Competitive Interest Rates
Because they're federally insured, FHA rates are often comparable to — or lower than — conventional loans.
Streamlined Refinance Option
FHA borrowers can use a streamline refinance with no appraisal and minimal documentation to lower their rate later.
FHA Loan Requirements
Here's what lenders look for when qualifying borrowers for an FHA loan.
Credit Score
580+ for 3.5% down; 500–579 requires 10% down
Down Payment
3.5% minimum
Occupancy
Must be your primary residence
Property
Must meet FHA appraisal and safety standards
Mortgage Insurance
Upfront (UFMIP) and annual (MIP) premiums apply
Is an FHA Loan Right for You?
Ideal Borrowers
- Are a first-time homebuyer
- Have limited savings or moderate credit
- Want a low down payment path to ownership
- Have past credit challenges but are rebuilding
Potential Drawbacks
- Mortgage insurance is required for the life of the loan
- Property must meet strict FHA appraisal standards
- Loan limits may be lower than conventional in some areas
FHA Loan FAQs
Compare Other Loan Programs
Not sure if an FHA loan is right for you? Explore these alternative financing options.
VA Loans
No down payment for veterans and service members
Learn MoreConventional Loans
Flexible financing with competitive rates
Learn MoreUSDA Loans
Zero down payment for rural and suburban homes
Learn MoreJumbo Loans
Financing for luxury homes above conforming limits
Learn MoreNon-QM Loans
Alternative documentation for self-employed borrowers
Learn MoreStart Your FHA Loan Journey
See if you qualify for FHA financing with Valor Home Mortgage
Proudly Serving Military Families Since 2019