FHA loans3.5% down,built for real credit.
FHA loans are insured by the Federal Housing Administration, so lenders can accept a smaller down payment and credit that is still being rebuilt. As a broker, we compare FHA pricing across multiple wholesale lenders, because the same FHA loan can cost very different amounts from one lender to the next.
Who FHA works best for.
A strong fit if
- You have saved less than 5% for a down payment
- Your credit score is between 580 and 680
- You had a past credit event and have rebuilt since
- You want to use down payment assistance or a family gift
- You are buying a 2 to 4 unit home and will live in one unit
Compare options if
- Your score is 720+ and you have 5% or more down. Conventional often costs less each month
- You want mortgage insurance to fall off on its own. FHA insurance usually stays for the life of the loan unless you put 10% down
- You are buying a second home or a rental. FHA requires you to live in the home
- The home needs major repairs to pass inspection. Look at a renovation loan instead
FHA guidelines in plain numbers.
These are the program rules. Each lender can add its own on top, which is why we shop your file across several of them.
| Down payment | 3.5% with a credit score of 580 or higher. 10% with a score from 500 to 579. Gifts from family and approved down payment assistance can cover it. |
|---|---|
| Credit score | 580 for 3.5% down under HUD rules. Many lenders set their own floor higher, which is why shopping lenders matters. Our credit plan targets 640+ for the widest choice and best pricing. |
| Loan limit (2026) | $1,249,125 for a 1 unit home in Prince George's County, Washington DC and Northern Virginia. 2 units: $1,599,375. 3 units: $1,933,200. 4 units: $2,402,625. |
| Upfront mortgage insurance | 1.75% of the loan amount, usually added to the loan instead of paid in cash. |
| Yearly mortgage insurance | 0.55% of the loan per year on a 30 year loan with less than 5% down, or 0.50% with 5% or more down. Paid monthly. Lasts 11 years if you put 10% or more down, otherwise for the life of the loan. |
| Debt to income | Usually up to the low 40s as a percent of gross monthly income, and higher with strong compensating factors such as reserves or a high credit score. |
| Occupancy | The home must be your primary residence. You move in within 60 days and live there at least 1 year. |
| Property | 1 to 4 unit homes, condos on the FHA approved list, and townhomes. The FHA appraisal checks basic safety and soundness. |
See what an FHA payment could look like.
Change any number. The estimate includes the FHA mortgage insurance most calculators leave out.
The two loans most buyers compare.
Most buyers with a score above 700 should see both. We price FHA and conventional side by side on every file.
Apply once
One secure application, about 10 minutes.
We price both
FHA and Conventional across our lenders, side by side.
You pick with real numbers
Payment, cash to close and total cost, in plain terms.
FHA or Conventional?
| Feature | Conventional | FHA |
|---|---|---|
| Minimum down | 3% for first-time buyers | 3.5% |
| Credit score | Most lenders look for 620+, best pricing at 740+ | 580+ |
| Mortgage insurance | None upfront. Monthly PMI priced by credit score | 1.75% upfront plus about 0.55% a year |
| Insurance goes away | Can be removed at 20% equity, ends automatically at 22% | Usually stays unless you put 10% down or refinance |
| Best for | Scores of 720+ with 5% or more down | Scores under 680 or a recent credit event |
Pair FHA with assistance and bring less to closing.
State, county and DC programs can sit on top of an FHA first mortgage. Each has its own income, price and homebuyer education rules, so we check eligibility before you write an offer.
Maryland Mortgage Program
1st Time Advantage pairs a first mortgage with deferred, 0% interest help: a flat $6,000 or 3% to 5% of the loan. In Prince George's County, Pathway to Purchase adds up to $50,000 for eligible buyers.
Check my eligibilityDC Home Purchase Assistance Program
For loans closing after July 1, 2026, HPAP offers up to $202,000 toward the purchase plus up to $4,000 for closing costs, based on income and household size.
Ask about HPAPFHA questions we hear every week.
What credit score do I need for an FHA loan?
HUD allows 3.5% down with a score of 580 or higher, and 10% down with a score from 500 to 579. Many lenders set a higher floor, often 620 to 640, so the lender you choose matters. As a broker we place your file with a lender whose guidelines fit your score.
How much is FHA mortgage insurance?
There are two parts. An upfront premium of 1.75% of the loan amount, which is usually added to the loan, and a yearly premium of 0.55% on a typical 30 year loan with less than 5% down. On a $410,000 loan, the yearly premium works out to about $188 a month.
Can I get rid of FHA mortgage insurance?
If you put less than 10% down, FHA insurance stays for the life of the loan. Most homeowners remove it later by refinancing into a conventional loan once they have about 20% equity. If you put 10% or more down, it ends after 11 years.
What is the FHA loan limit in Prince George's County for 2026?
$1,249,125 for a single family home. The same limit applies in Washington DC and Northern Virginia. Limits are higher for 2 to 4 unit homes.
Can I use down payment assistance with an FHA loan?
Yes. Maryland's 1st Time Advantage and Prince George's Pathway to Purchase work with FHA, and DC offers the Home Purchase Assistance Program. Each program has income, price and education rules, so we check your eligibility before you make an offer.
Can I buy a duplex or fourplex with FHA?
Yes, as long as you live in one of the units. Rent from the other units can help you qualify. Down payment is still 3.5% with a 580+ score.
Do I have to be a first-time buyer?
No. FHA is open to repeat buyers too. You can generally have one FHA loan at a time, since the home must be your primary residence.
Compare other options.
Conventional Loans
3% down for first-time buyers, and mortgage insurance that comes off at 20% equity.
ExploreVeterans & militaryVA Loans
No down payment and no monthly mortgage insurance for eligible veterans and service members.
ExploreZero downUSDA Loans
No down payment financing for eligible homes in qualifying areas of Maryland and Virginia.
ExploreBuy + fixRenovation Loans
Roll the purchase and the repairs into one loan with FHA 203(k) and HomeStyle.
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