FHA 30-Year

A 30-year fixed-rate FHA loan is a traditional choice with the added bonus of less stringent requirements.

Benefits

Lower Credit Requirements

Credit score eligibility conditions are lower than those of conventional loans.

Low Down Payment

Borrowers can benefit from a down payment as low as 3.5% of the property's value.

Integrated Closing Costs

The loan closing costs can be integrated into the loan, reducing upfront expenses.

Flexible Financial History

Borrowers with financial issues or bankruptcy history may still qualify for the FHA 30-year fixed mortgage loan.

FHA 30-Year Fixed Mortgage Information

FHA loans are insured by the Federal Housing Administration, which comes under the US Department of Housing and Urban Development (HUD). This means that if the homeowner is unable to repay the loan, the lender is secured from losses. To better understand the eligibility criteria and program details, you can start by <a href="/apply">speaking to one of our seasoned experts</a>.

How Does the FHA 30-Year Fixed Mortgage Work?

Based on the borrower's credit score, the home buyer is allowed to borrow a percentage of the property's value:<ul><li>Credit Score 580 or more: Can borrow 96.5% of the property's value with a 3.5% down payment</li><li>Credit Score 500-579: Can borrow 90% of the home's value with a 10% down payment</li></ul>

FHA Loan Eligibility Conditions

<ul><li>An FHA appraiser must approve the property.</li><li>The FHA loan is available only for the primary residence.</li><li>The borrower should move into the property within 60 days of closing the loan.</li><li>The property has to meet the required minimum property standards during the inspection.</li><li>The borrower must be a permanent resident of the U.S. or hold specific eligible statuses (U.S. citizen, lawful permanent resident) to be eligible for an FHA loan as of May 25, 2025.</li></ul>

Mortgage Insurance Premium (MIP)

MIP is a must for FHA loans. It's typically charged upfront, usually about 1.75% of the loan's value. An annual MIP is also charged, usually between 0.15% and 0.75% of the loan's value. MIP needs to be paid throughout the loan's life, with some exceptions.

FHA 30-Year Fixed Mortgage Requirements

Understanding the requirements for an FHA 30-Year Fixed Mortgage can help you determine if this loan is right for you.

Credit Score and DTI

Credit scores as low as 500 may qualify, but scores of 580 or higher get better terms. Debt-to-income ratio (DTI) is also considered, with some flexibility for higher credit scores.

Income Requirements

While there are no specific income limits, borrowers must establish a sound employment history. Documentation like tax returns, bank statements, pay stubs, and W-2s are required.

FHA Loan Limits

Loan limits vary by county. As of 2024, the limit in high-cost areas is $1,149,825, while in low-cost areas for 1-unit properties, it's $498,257.

Interest Rates

FHA interest rates are typically lower compared to conventional loans. Rates depend on factors like credit score, income, down payment amount, and DTI.