FHA.com Mortgage Review

ByAshlyn JacksonJul.15, 2021
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In a Nutshell

First time home buyers have a lot on their plate when it comes to financing. FHA loans make the home buying process both simple and affordable with flexible mortgage options.


  • No High Credit Score Needed (580 min)
  • Low Down Payment
  • Low Debt to Income Ratio


  • Need at least 2 active credit accounts
  • FHA Lending Limits the maximum loan amount
  • Origination and Appraisal fees not covered

FHA Mortgage Loans at a Glance 

Loan typesMortgage and Refinance
Featured loansFHA
Repayment terms15 or 30 years
Suitable for:First time homebuyers looking for affordability


First time homebuyers looking for an escape from conventional home mortgages can find affordability and top features in an FHA loan. FHA loans offer substantial savings with low down payments and low interest rates. Down payments start as low as 3.5% if you have over a 580 credit score and as low as 10% down payment for credit under 580. 

Suitable For?

Suitable for first time home buyers looking to capitalize on low down payments and needing a low credit score to qualify. With Conventional loans looking for a 620 or above, customers who may not have stellar credit can still find themselves able to finance a home with as low as a 500 credit score. Also, conventional loans tend to require about 20% in a down payment. With FHA you can get as low as 3.5%, saving your thousands in the process. Even those who might have some bad financial history such as bankruptcy or foreclosure can gain approval in many cases. 

Types of Loans/Products

The FHA Mortgage loan is one most first time buyers use as a go-to home loan. Seeing as that the down payments and application process are of the most lenient, those who may not be able to comfortably afford a large down payment can eliminate the stress with the lowest down payment possible. Especially those who find themselves in a less than flattering financial state. 

  • Min 3.5% Down Payment
  • Can Qualify with 580 credit score 
  • Can Qualify with bad credit history
  • Eligible for maximum financing 

The Application Process

There is a traditional application process when it comes to FHA Mortgage Loans. You begin by finding a lender, this won’t be difficult given that most banks and mortgage lenders offer FHA loans. Be aware that their fees and rates will vary depending on the lender that you choose. While there is still the possibility of applying through paperwork and forms, many lenders have found an easier process through moving the application online. For the actual application you will need certain documents such as; social security,W-2, previous years tax filings, bank statements and proof of income. All should be fairly easy to find. Once your application is completed your loan officer will review and allow you to submit if no further documentation is needed. 

Rates and Fees– The Bare Basics 

As compared to conventional loans FHA loans offer much for flexibility when it comes to affordability. Typically, conventional loans require at least 20% be put down on the property at close. This can set you back several tens of thousands of dollars by the end of close. However, FHA mortgage loans have made a low bar of entry to obtaining an incredibly low down payment, 3.5%. To qualify, however, you must have at least a 580 credit score. That's not to say someone with say a 500 could not qualify, it just simply is well known that anyone wanting the lowest possible down payment needs to meet their 580 standard when it comes to their FICO score. 

Repayment Terms

FHA loans are repayable in either 15 or 30 years. If a homeowner chooses to pay their loan off sooner it is at their discretion. Since FHA loans are designed for lower income families the federal government does not add unnecessary fees. This included fees such as prepayment penalties that may cause financial struggle to be tacked onto these types of mortgages. 

Help & Support

For more information, help or support in regards to your FHA loan you should contact your lender who may have a personal banker or help line available to answer any questions. For general FHA information or support you can visit FHA.com. Here you can find more information regarding this year's FHA loan limits, loan requirements, credit scores and mortgage calculators.

How This Company Compares

As it stands FHA loans have some peak aspects that cause it to stand out against other conventional loans. To begin, since they were designed to benefit low-to-moderate income families, they possess certain affordable qualities that conventional loans fail to have. This includes a lower than average down payment of 3.5% as opposed to the traditional 20% that most mortgages require. This is coupled with the lack of need for a high credit score. For conventional loans the rule of thumb is to have at least a 620 to qualify, with FHA loans you need only a 580 to qualify for a 3.5% down payment. Anything below still qualifies you for as low as a 10% down payment. 


Designed for first time homebuyer or lower income families, FHA loans offer affordability and flexible loan terms. For those not looking, or unable, to put a lot of cash down, FHA loans are a better deal. With both a low credit score to qualify and the low down payment offer, families stand to save thousands in the process. 


  • Who Offer FHA Loans - Most banks and mortgage lenders offer FHA loans, however each has their own set of rates and fees. Check with your local bank or credit union to see what they offer current customers in terms of FHA loans. 
  • Can I Still Qualify With a Foreclosure or Bankruptcy- FHA loan applications are looked at on a case by case basis to determine eligibility. Certain factors such as time that has elapsed, credit history and DTI ratio is taken into account. However their website clearly states that it does not immediately deny you for having either of these on your credit report. 
  • What is the Maximum Loan Limit- Loan limits are determined by the federal government, you can find this year’s loan limits here
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