No, FHA loans are strictly for primary residences. However, you can buy a 2–4 unit property with FHA as long as you live in one of the units.
Accessible Homeownership
FHA Loans: Your Path to Homeownership with Just 3.5% Down
Stop waiting for the “perfect” credit score or a massive down payment. FHA loans are designed to get you into your home faster with flexible guidelines and competitive rates.
Why Choose an FHA Loan?
FHA loans offer unique advantages that conventional loans often can’t match, especially for first-time buyers.
Lower Credit Requirements
Qualify with a credit score as low as 580 with only 3.5% down.
Higher Debt Ratios
FHA allows for a higher debt-to-income ratio than most conventional programs.
Gift Funds Allowed
100% of your down payment and closing costs can be gifted from family.
FHA Programs for Every Situation
From buying your first home to renovating a fixer-upper, there’s an FHA program for you.
The Standard
FHA Purchase Loan
The go-to option for those seeking a low down payment and flexible credit standards. Whether it's your first home or your fifth, FHA is designed for accessibility.
- 3.5% min. down
- 580+ credit score
- 100% Gift funds allowed
- Seller can pay up to 6% closing costs
Fast & Simple
FHA Streamline Refinance
Already have an FHA loan? Drop your rate and monthly payment with minimal paperwork. Often requires no appraisal or income verification.
- No Appraisal (often)
- No Income Verification
- Close in 21-30 days
- Reduced Paperwork
One-Time Close
FHA Construction
Build your dream home with a single loan and one closing. Finance the land and the build together with just 3.5% down on the total project.
- One Loan, One Closing
- 3.5% Down Total
- Finance Land + Build
- Streamlined Process
The Fixer-Upper Solution
FHA 203(k) Renovation
Buy a home that needs some love and roll the repair costs into your mortgage. Perfect for getting into great neighborhoods at a lower entry price.
- Standard: $35K+ major rehab
- Limited: Up to $35K repairs
- One Loan for Purchase + Reno
- Increase Equity Fast
FHA Requirements & 2026 Limits
FHA is designed to be accessible. Here is what we look at.
| Criteria | FHA Requirement | Notes |
|---|---|---|
| Credit Score | 580+ (3.5% down) | Bankruptcy OK after 2 yrs; foreclosure after 3 yrs |
| Down Payment | 3.5% | 100% gift funds allowed; DPA programs available |
| Debt-to-Income | 43% max | Higher ratios possible with strong factors |
| Max Loan (2026) | $524,225+ | Varies by county |
| Max LTV | 96.5% | Based on lower of purchase price or appraised value |
| Mortgage Insurance | 1.75% Upfront + ~0.55%/yr | Upfront can be financed; annual drops after 11 yrs with 10% down |
FHA Loan FAQs
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Can I use FHA for an investment property?
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Is there a maximum income limit for FHA?
No, unlike some assistance programs, FHA does not have a maximum income limit. It is based on your ability to repay the debt (DTI).
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How long after a bankruptcy can I get an FHA loan?
Typically 2 years after a Chapter 7 discharge, provided you have re-established good credit. For Chapter 13, it can be as soon as 12 months with court approval.
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Does the seller have to pay my closing costs?
They don't have to, but FHA allows the seller to contribute up to 6% of the purchase price toward your closing costs, which is higher than the 3% allowed on most conventional loans.
Ready to Start Your FHA Journey?
Don’t let credit or down payment hurdles stop you. Let’s find the path that works for your family.
Related Resources:
- KYLE JESSEE LENDING TEAM
- MOVEMENT MORTGAGE
184 Duke of Gloucester St Suite 1B, Annapolis, MD 21401
NMLS #1212644 | Kyle.Jessee@movement.com