FHA Learning Center


An FHA loan is a home loan the Federal Housing Administration 'insures'. FHA loans are noted for having smaller down payments, lower closing costs and easier lending standards to help homeowners who don?t qualify for a conventional mortgage.

The FHA Loan allows a down payment of as little as 3.5% on a mortgage. This can make it possible for lower income & and middle income borrowers to purchase buy a home when they may not qualify for a conventional loan ? which has must stricter credit requirements, including a higher credit score and strong credit history, and conventional loans traditionally require a larger down-payment (usually 20% of the Purchase Price).


The FHA Government Program provides insurance to the bank or lender of your home, promising them financially in case the borrowers does not pay the mortgage. 


FHA Loan Limits
FHA loan limits vary based on location and property type (single-family home / 2 unit / 3 unit), and are calculated individually for each state and each county within that state. You can find the
FHA Mortgage Limit for your area by visiting this page: The FHA in Your State.

FHA Loan Requirements

  • 3.5 percent of the purchase price for down-payment

  • Have a valid U.S. Social Security number.

  • Proof of U.S. citizenship, evidence of legal permanent residency or eligibility documentation to work in the U.S.

  • Valid age to sign mortgage loan documentation under your state?s laws.

  • Purchase a one- to four-unit (Maximum) property.