FHA Standard

Min. FICO 620 Up to 97.75% CLTV

FHA Standard loans are government-backed mortgages designed to help low- to moderate-income borrowers achieve homeownership. With a less stringent credit score and down payment requirements than traditional loans, FHA loans are ideal for first-time homebuyers.

Program features
  • Loan amounts up to $498,257*
  • DTI up to 55%
  • LTV up to 97.75%
  • Min. FICO 620
  • MIP is required
Why choose our FHA Standard?
  • Great for the first-time homebuyers
  • Min. down payment 3.5%
  • Less than average credit score requirements
Download file

Download program PDF


Struggling with a loan scenario? Push the button and get a solution in 30 minutes!

Program request

Write to us, we will contact you within 30 minutes.

Name *

Fill out this field

Company Name *

Fill out this field

Company NMLS (optional)

Fill out this field

Company State *

Fill out this field

Phone *

Fill out this field

Email *

Fill out this field

Inquire *

Fill out this field
Please, accept the privacy policy


Something went wrong.

Please try again
Thank you

Thank you!

We’ll contact you as soon as possible

Program details

Loan amounts up to $498,257
DTI up to 55%
LTV up to 97.75%
A maximum LTV of 80% for cash-out refinances
Owner occupied only
Income history of at least two years through employment verification
Min 1 month of reserves for 1- or 2-unit properties and 3 months of reserves for 3- or 4-unit properties required
Gift funds are allowed
MIP upfront and monthly insurance throughout the life of the loan (or 11 years with a 10% or more down payment) is required
At least 2 years out of credit events
Single-family detached, single-family attached, 2–4 units detached/attached, PUDs, low-rise and high-rise condominiums (must be FHA eligible), rural properties (in accordance with agency guidelines, loans must be residential in nature)
Fixed or adjustable rates for 30-, 20- or 15-year terms are available
US citizens, Permanent Resident aliens, with proof of lawful permanent residence, Non-Permanent Resident alien immigrants, with proof of lawful residence
Individuals, living trusts
Show more

* FHA loan amounts are determined by the county loan limits, and therefore, the limit is not always $498,257. For the most accurate and up-to-date information regarding FHA loan limits in a specific county, please refer to the FHA Mortgage Limits Lookup tool provided by HUD at this link

Quick Pricer

Calculate your scenario

Get detailed information about the potential loan.

Quick Pricer

Fast turnaround times


24 hours


24 hours


24 hours


24 hours

24 hours

FHA Standard FAQ

What is the FHA?

The Federal Housing Administration, or FHA for short, is a federal agency of the United States Government established in 1934 to stabilize the U.S. mortgage market, improve housing conditions and standards, and provide an adequate home financing system.

It accomplishes this by providing mortgage insurance on loans made through its approved lenders and setting standards for underwriting and construction.

How do FHA loans work?

The FHA provides mortgage insurance to their approved lenders so that if a borrower defaults on their loan, the lender is reimbursed. The FHA does not directly offer loans.

Borrowers will have to pay a one-time upfront mortgage insurance premium (MIP) that is rolled into the loan and an annual MIP that is divided by twelve and included in their monthly payments.

The premiums go into a fund that repays lenders if borrowers default. Mortgage insurance is required for the full length of FHA loans.

Who are FHA loans for?

FHA loans for are best for borrowers who are looking for a minimal down payment and who may have trouble getting approved elsewhere. Further, it will be important that the house they want to buy, falls within the mortgage limits.

What are the qualifications for an FHA loan?

Basic qualification requirements for an FHA loan

Applicants must:

  • Have a social security number (SSN)
  • Be of the minimum age to enter into a mortgage
  • Meet income requirements
  • Show two years of work history and income that will continue for the first three years of the mortgage
  • Have qualifying debt-to-income and mortgage payment-to-income ratios (varies based on credit score and compensating factors)
  • Hold a minimum credit score of 500 for the 10% down payment and 580 for 3.5% down payment (although many lenders require at least a 620)
  • Must be creditworthy (i.e., no recent bankruptcies, liens, unresolved delinquencies or collection accounts, recent foreclosures, etc.)
  • Have mortgage insurance
  • Take the title in their own name or in the name of a living trust
  • Live in the property as their primary residence within two months and for one year (exceptions do exist)
  • Have no delinquent tax or non-tax federal debt

Additionally, the home must meet the “Property Acceptability Criteria,” and the loan must be under the FHA maximum limit for their area

How long does it take to close an FHA loan?

Many factors can influence the closing time of a loan. However, according to Ellie Mae, FHA loan closing times average around 50 days.

What kind of mortgage insurance is required for an FHA loan?

All FHA loans require borrowers to pay an upfront and annual mortgage insurance premium regardless of the amount of their down payment. The annual premium continues for the entire length of the loan.

Upfront mortgage insurance premium (UFMIP)

The UFMIP is paid at the time that the loan closes and is equal to 1.75% of the base loan amount. Note that it must be entirely financed into the loan or entirely paid in cash. The proceeds are placed into an escrow account set up by the U.S. Treasury Department to protect the government if the borrowers end up defaulting on their loans.

Annual mortgage insurance premium (MIP)

MIP is due annually but can be paid on a monthly basis. Proceeds go to the FHA to cover the loss for the lender if the client defaults.

Why is mortgage insurance required on an FHA loan?

Mortgage insurance is required on an FHA loan to protect the government and the lender against losses. FHA loans enable higher accessibility to home ownership by lowering credit and financial requirements. As a result, lenders face a higher risk. Mortgage insurance helps to mitigate that risk.

Can I get help in paying my down payment on an FHA loan?

Yes. HUD and the FHA allow borrowers to use gifts and assistance programs to get the funds needed for their down payment. However, the gift must be from an eligible person who does not have a financial interest in the transaction (i.e., family, a friend, employer, etc.). The seller, builder, or real estate agent would not be an eligible gift giver. Further, the gift must be given without any expectation of repayment.

Can FHA loans be refinanced?

Yes, just like any mortgage, an FHA loan can be refinanced. Further, the FHA offers a streamlined program that makes refinancing quite simple.

What are the interest rates on FHA loans and how are they determined?

Both fixed and adjustable interest rates are available on FHA loans. The average rates in the market will depend on current economic activity, and the rate offered will further depend on the borrower’s credit and financial profile.

Lenders will evaluate the level of risk borrowers present and will offer the best rates to those presenting the least amount of risk (i.e., high income, good credit, cash reserves, etc.).

Be aware that interest rates can vary by lender, so it is smart to shop around with at least three lenders.

What is the maximum loan amount for an FHA loan and how is it determined for a specific area?

The maximum loan amount for an FHA loan varies by location because it is determined by the county loan limits. To find the maximum loan amount for an FHA loan is specific area, you can visit the official website of the U.S. Department of Housing and Urban Development (HUD) and use the FHA Mortgage Limits Lookup tool (, filter by a desired location and get the FHA mortgage limits.

Ready to get started?

Write to us, we will contact you within 30 minutes.

Get in Touch