FHA loans have long been a valuable resource for Americans who want to fulfill their goal of homeownership but who don’t have the benefit of a lengthy credit history and equity.

If you’re hoping to buy a home in the near future but want to explore all of your options in terms of financing, this article is for you.

Today we’re going to talk about FHA loans and how to know if you qualify for one.

What are FHA loans?

FHA loans are issued by private mortgage lenders across the country, just like regular mortgages. The difference, however, is that an FHA loan is “guaranteed” by the federal government.

Lenders decide your borrowing eligibility, and how much you can borrow, by determining risk. If you don’t have a sizable down payment (oftentimes 20% or more) and you have a low credit score, most mortgage lenders will see you as a risky person to lend to.

When you get an FHA loan, however, the federal government assumes some of that risk, allowing you to secure the loan anyway.

This means you can buy a home with a low credit score, a smaller than usual down payment, and save on some closing costs.

How do I qualify for an FHA Loan?

To find out if you qualify for an FHA loan, you’ll head to the same place as a traditional mortgage–a mortgage lender. Oftentimes, you can simply call or visit the website of lenders to get the process started.

As with all things, it’s a good idea to shop around for a mortgage lender. Their offerings will be largely similar, but there might be minor differences that make one better than another for your particular circumstances.

Down payment requirements

To secure an FHA loan, you will need to make a down payment of at least 3.5%. However, this low down payment comes with a price. You’ll typically be required to pay private mortgage insurance (PMI) fees on top of your accruing interest for your loan.

Credit score requirements

While you can often secure a mortgage with a lower credit score through an FHA loan, there are still some requirements. To secure a loan with the lowest possible down payment (3.5%), you’ll need a credit score of 580 or above.

Previous homeowners and FHA loans

A common misconception about FHA loans is that they are only for first-time homeowners. However, you can still qualify for an FHA loan if you’ve owned a home before as long as it has been three years since you’ve had a foreclosure or two years since filing for bankruptcy.

If you meet these three conditions, you should be able to secure an FHA loan through a traditional mortgage lender.

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This Single-Family in Milton, MA recently sold for $720,000. This Colonial style home was sold by Mac Chinsomboon – Coldwell Banker Residential Brokerage.

61 Warren Ave,

Milton, MA 02186



Sale Price



Full/Half Baths

Look for the purple door behind the scrim of tastefully planted flowering beds with cherry and dogwood trees and you'll know you have arrived somewhere special. Built with stone, stucco, slate and a great deal of craftsmanship in the early years of the 20th century, this timeless home invites you to enjoy a way of living that never goes out of style. The large comfortable living room is centered around the floor to ceiling fireplace with bespoke cabinetry. Spend late afternoons in the sunroom surrounded by handcrafted casement windows allowing for a summer breeze. Plenty of space for dinner guests in the classic dining room, and just beyond, the updated kitchen with a clean more modern aesthetic. The second floor is a rare find with five bedrooms wrapping around the spacious landing with good morning staircase. The fenced backyard with patio offers you an extra room for many months of the year. Graceful, private, and close to everything in town. Live well at 61 Warren Avenue.

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