FHA Loan Article Library

June 30, 2026FHA loans offer low down payment options and more forgiving credit requirements for borrowers who may not qualify for a conventional mortgage or need to save more money out of pocket at the front end of the mortgage. But even with more forgiving credit requirements, some borrowers are tempted to omit certain debt information from their home loan applications. What does it mean to conceal a debt or financial situation from your loan officer?

June 30, 2026Some borrowers start working on their credit scores but get impatient with the process because they can't predict when their efforts will change their FICO scores. How long does it take for your FICO scores to update when you pay off a loan, reduce your credit card balances, or take other steps to make yourself a better credit risk? The short answer is that credit reporting procedures are not standardized, and it may take more time than you realize to get those positive credit actions added to your credit report.

June 29, 2026Mortgage interest rates are "moving targets" shaped by national economic trends and the borrower's specific financial profile. What is your FHA loan interest rate? Much depends on the financial data you bring to the table. Lenders set interest rates daily based on a snapshot of market conditions, but the rate ultimately offered also reflects risk, equity, and the lending institution's internal operational costs.

June 28, 2026An FHA appraisal differs from a conventional appraisal. While the goal of a conventional appraisal centers on market value, the FHA appraisal also focuses on the buyer's safety and soundness. FHA lenders select the appraiser, not the home buyer.

June 24, 2026FHA loan closing costs vary by property price and geographic location, rather than by a single nationwide flat fee. Total settlement charges combine percentage-based fees, local government taxes, and marketplace service costs. If you are new to buying a home, you'll want to get familiar with the closing cost issues discussed here to avoid budgetary surprises later on.

June 12, 2026Primary borrowers may wish or need to remove a cosigner to establish financial independence and take sole ownership of a property due to divorce, separation, or other life changes. Many people get an FHA mortgage with a cosigner because their personal credit history or income is insufficient to qualify on their own.

June 10, 2026Many FHA borrowers bypass the adjustable-rate mortgage (ARM) option in favor of a fixed-rate loan. Borrowers who are new to these options often have questions about the differences between the two and why one may be a better choice than the other, depending on your circumstances and plans for the home beyond closing day.

June 5, 2026FHA loans require a minimum down payment of 3.5%, and in return, the federal government insures the mortgage against default. But not all applicants can come up with the down payment funds as readily as others. Some rely on down payment assistance to meet their down payment requirements, but the terms and conditions of these programs often include income limits and price caps on the property being purchased.

May 28, 2026It's easy to assume that for a government-backed mortgage loan like an FHA single-family home loan, a government worker sits at a desk in Washington reviewing FHA loan applications to approve an FHA loan. But that is a misconception. What's the reality?

May 27, 2026Buying real estate involves expenses that go beyond the baseline sticker price and standard interest. Financing a property requires homebuyers to budget for the down payment, as well as fees, initial transaction charges, and ongoing insurance premiums required by the lender. Knowing these expenses is easier thanks to a required APR disclosure that your lender must provide.

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.

May 5, 2026If you want to buy a home with another borrower or even a co-signer,m there are some important nuances to know before you commit. Did you know signing an FHA mortgage obligates every participant to full financial liability for the debt? This is true, but only people listed on the property title hold ownership rights, something some first-time buyers do not realize at first. First-time homebuyers should know the differences between these borrowing roles to avoid unexpected liabilities and conflict.

April 30, 2026Securing a mortgage with a co-borrower is a common strategy for first-time home buyers to improve their debt-to-income ratio or qualify for a more competitive interest rate. However, financial and personal circumstances often change, and removing one party from the legal and financial commitments may be necessary. Because FHA loans involve a government-backed guarantee, the process of releasing a borrower requires following a set of FHA/HUD guidelines.

April 28, 2026The Department of Housing and Urban Development (HUD) determines the maximum mortgage amounts for each county in each state, known as FHA loan limits. These figures vary geographically, and the federal government sets those limits each year. State governments do not have the authority to set them, but it is possible to appeal an FHA loan limit decision if the data is flawed or there are other issues.

April 27, 2026The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) were created by Congress to help stabilize the home mortgage market. When you start looking for a home, you will encounter Fannie and Freddie loan options in addition to FHA loan options, and getting familiar with these options is important, even if you know you want an FHA mortgage.

April 22, 2026Foreclosure is the process lenders use to repossess a property when a borrower defaults on a home loan. Under FHA loan rules, participating lenders must follow a specific plan before proceeding with this final step. While it is true that a foreclosure resolves the debt, it also puts a long-term negative entry on credit reports. This triggers a three-year waiting period for future FHA loan eligibility. Borrowers may avoid this outcome through retention options like the Recovery Modification. How much do you know about the foreclosure process and why it’s not the recommended option for borrowers in financial trouble?

April 21, 2026House hunters new to home loans soon discover there are major differences between FHA and conventional loans. One of those big differences is the minimum down payment: FHA loans require a minimum down payment of 3.5% for borrowers with a credit score of 580 or higher. While some conventional loans through Fannie Mae and Freddie Mac offer 3% down programs for first-time buyers, these programs come with stricter requirements.

April 16, 2026What is a second mortgage? It's basically a subordinate lien on the original FHA loan, with the down payment assistance being the most common reason a borrower might need this option. It is true that the FHA 3.5 percent down payment is a relatively low requirement, but it represents a large cash outlay that some borrowers struggle to raise. Many state and local housing authorities offer second mortgages to cover a home loan's down payment and/or closing costs. It's not the only use for a second mortgage, but it's an important one.

April 15, 2026FHA loan rules prohibit balloon payments on single family home loans, requiring that they be fully paid off at the end of the loan term. This is designed to protect borrowers from a risky arrangement that requires a larger lump-sum payment upon the loan's full maturity. While some borrowers may not initially know whether they want a conventional or an FHA mortgage, understanding why a balloon payment is a higher risk option is an important part of making the most informed decision you can about the type of mortgage you apply for, the loan term, and other factors.

April 14, 2026When you buy a home with an FHA mortgage or any other type of loan, there are certain disclosures your lender must provide you with to make sure you fully understand the costs involved, how much you are committing to, and what you must bring to the table on closing day. What do you need to know about these disclosures and why they are important? We examine some key points, but note that receiving these disclosures alone is not enough. The borrower must review them carefully to ensure there are no major changes to the amounts, terms, or conditions.

March 31, 2026The Federal Housing Administration (FHA) loan program is a major alternative to conventional loans, which often require a higher down payment. If you are buying your first home, chances are good that you've already learned about conventional home loan financing and higher down payment and higher credit score demands that some first-time buyers cannot meet.