FHA Loans, Built for Real-Life Credit

Who FHA fits best

• Credit scores 580–699, where FHA pricing usually beats conventional (unless you have 20% down)
• Scores as low as 500–579 with 10% down (lender overlays may apply, ask Connor)
• Higher-DTI buyers, strong files can be approved up to 57% DTI with AUS approval, the highest of any standard program
• Buyers 2–3 years past a bankruptcy or foreclosure (versus 4–7 years for conventional)

Key details worth knowing

• Mortgage insurance two ways: 1.75% upfront (financed into the loan) plus about 0.55% per year for most buyers
• With the minimum down, monthly MIP lasts the life of the loan, the exit strategy is refinancing to conventional once you have equity
• Assumable, a future buyer can take over your rate, a real asset on a low-rate loan
• The entire down payment can be gift funds, and the seller can credit up to 6% toward costs
• 2026 limits scale by county: $541,287 floor nationally, up to $701,500 in Clark County, WA and $586,500 in the Boise area
• 203(k) renovation loans can finance repairs into the purchase, a fixer-home solution

FHA carries mortgage insurance, so it isn't always the cheapest long-term option. Connor models FHA against conventional side by side so you see the true monthly payment and cash to close before you decide.

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