FHA Loan Requirements for 2026

May 21, 2026The Department of Housing and Urban Development requires FHA borrowers to use an escrow account for the entire lifespan of an FHA-insured mortgage. While some conventional loans may allow property owners to manage their own tax and insurance payments if they provide a down payment of 20 percent or more, the FHA loan program allows no exceptions or waivers, regardless of the size of your initial down payment.

May 20, 2026Discount points are basically prepaid interest. You can choose this option to pay cash in exchange for having the lender reduce your interest rate. Each point has a fixed cost equal to 1% of your total base loan amount. For example, if you secure a $400,000 FHA mortgage, a single point requires an exact cash payment of $4,000 at closing. Who is right for discount points? Not all borrowers should make the commitment.

May 19, 2026Lenders view income as a fixed amount of money. To approve your loan amount, an FHA lender must review and deduct any recurring non-housing obligations, such as auto loans, personal financing, and credit card minimums, from that fixed amount. How much you have left over after those calculations plays a big role in loan approval.

May 15, 2026When an FHA home loan application falls short of loan approval, knowing the FHA loan guidelines could makes the difference between a rejected loan and a successful application. If you are initially denied a loan through automatic underwriting, there may still be a pathway to an FHA mortgage through compensating factors, or getting a non-occupying co-borrower.

May 11, 2026Buying and owning your first home means planning and saving. Not only are there down payment and closing cost concerns, but as a first-time homeowner, it is important to anticipate the expenses of homeownership, including repairs, appliance replacement, lawn care, and more.