FHA Loan Requirements

Updated: October 2026. Rules change; confirm with a licensed lender.

FHA loans are insured by the Federal Housing Administration and are popular with first-time buyers. These are general rules; lenders may add their own.

Credit score

Generally, 580 or higher allows the minimum 3.5% down payment. Between 500 and 579, 10% down is typically required. Many lenders require higher scores.

Down payment

At least 3.5% of the price. It can come from savings, documented gift funds or assistance programs.

Income and debt

Lenders usually look for about two years of steady employment and a debt-to-income ratio around 31% for housing and 43% for all debts, with exceptions for strong compensating factors.

Mortgage insurance

FHA charges an upfront premium (1.75% of the base loan, usually financed) plus a monthly premium.

The home

It must be your primary residence and pass an FHA appraisal for minimum property standards.

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