An FHA loan is a mortgage insured by the Federal Housing Administration — a division of the U.S. Department of Housing and Urban Development. The government insurance protects lenders against losses, which allows FHA-approved lenders to offer more flexible qualification requirements than conventional loans. FHA loans are available for primary residences only.

What credit score do i need for an FHA loan?

FHA guidelines allow credit scores as low as 500. Borrowers with scores of 580 or higher qualify for the 3.5% down payment option. Borrowers with scores between 500 and 579 are required to put down at least 10%. Many lenders add their own overlays that push these minimums higher — we follow pure HUD guidelines with no overlays added.

How much do i need to put down on an FHA loan?

As little as 3.5% down for borrowers with a 580 or higher credit score. Borrowers with scores between 500 and 579 need at least 10% down. Down payment funds can come from personal savings, gift funds from family, employers, or eligible down payment assistance programs — 100% gift funds are allowed on FHA.

What is FHA MIP and how is it different from conventional PMI?

FHA mortgage insurance premium (MIP) has two parts: an upfront premium of 1.75% of the loan amount (which can be financed into the loan) and an annual premium paid monthly. Unlike conventional PMI — which is automatically removed when you reach 20% equity — FHA MIP typically stays for the life of the loan unless you put 10% or more down, in which case it drops off after 11 years. This is why borrowers who build equity often consider refinancing out of FHA into a conventional loan.

What is an FHA Streamline Refinance?

The FHA Streamline Refinance allows existing FHA borrowers to refinance into a lower rate with minimal documentation and no appraisal required in most cases. It's one of the fastest refinance options available — limited income verification, no full underwrite of assets, and a simplified process designed specifically for FHA-to-FHA refinances. You must already have an existing FHA loan to use this program.

FHA Loans — Government-Backed, Borrower-Friendly

More Borrowers Qualify for FHA Than Any Other Loan Program

Lower credit score? Smaller down payment? Higher debt-to-income ratio? FHA is built for real-world borrowers — not just the ones with perfect financial profiles. And unlike a lot of lenders, we follow straight HUD guidelines with no overlays added on top.

Credit Scores From 500
Down Payments From 3.5%
No Overlays
Manual Underwriting Available
High Balance Available
FHA Streamline Refinance

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No credit pull required · Response within 24 hours

FHA Programs

Three FHA Options — Purchase, Refinance, and Streamline

FHA isn't just for first-time buyers. Here's every FHA option we offer and who each one is designed for.

We follow pure HUD guidelines — no overlays added.

Many lenders add their own requirements on top of FHA guidelines — called overlays — which restrict who can qualify. We don't. If HUD says you can qualify, we'll work with you. That includes manual underwriting, non-traditional credit, and credit scores down to 500.

FHA Purchase Loan

First-Time & Repeat Buyers

The most accessible purchase mortgage in the country. Low down payment, flexible credit, and higher DTI allowances than conventional — designed to give more borrowers a real path to homeownership.

Down payment as low as 3.5% (580+ credit score)
10% down for credit scores 500–579
Credit scores from 500 considered
Non-traditional credit allowed
Higher debt-to-income ratios allowed
Gift funds accepted for down payment
High balance available in qualifying counties

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FHA Rate & Term Refinance

Existing Homeowners

Already own your home? Refinance your existing loan — FHA or conventional — into a new FHA loan to lower your rate, adjust your term, or both. Standard documentation required.

Refinance existing FHA or conventional loan
Lower your rate or shorten your term
Credit scores from 500 considered
Non-traditional credit allowed
Manual underwriting available
High balance available

See If I Qualify

FHA Streamline Refinance

Existing FHA Borrowers

Already have an FHA loan? The streamline refinance is one of the simplest mortgage transactions available — lower your rate with minimal documentation and no appraisal required in most cases.

Existing FHA loan required
No appraisal required in most cases
Limited income documentation
Lower your monthly payment quickly
Fees can be rolled into the new loan
No cash-out allowed on streamline

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Credit Score Guide

FHA Qualification by Credit Score — Here's What to Expect

FHA is more flexible than any other purchase mortgage. Here's exactly how your credit score affects your options.

Strong FHA Candidate
Down payment as low as 3.5%. Full automated underwriting eligibility. Best rates and terms available under FHA guidelines.
580+
Still Eligible — 10% Down
FHA allows scores as low as 500 with a 10% down payment. We can work with this — many lenders add overlays that exclude these borrowers. We don't.
500–579
Non-Traditional Credit
No credit score at all? FHA allows non-traditional credit — rental history, utility payments, insurance records — to establish creditworthiness. Manual underwriting required.
No Score
Manual Underwriting Available
When automated systems say no, a human underwriter reviews your full picture. We offer manual underwriting to give every eligible borrower a fair shot.
Any Score

The Process

How an FHA Loan Works

The FHA process is straightforward. Here's what to expect from your first call to closing day.

Step 1

Free Consultation — No Credit Pull

We review your credit score, income, and goals. We'll tell you upfront whether FHA is your best path or if another program makes more sense.

Step 2

Pre-Approval in 24 Hours

Once you're ready, we pull credit and issue a pre-approval within one business day — typically faster than most lenders. Your pre-approval is what sellers and agents need to see.

Step 3

Find Your Home

FHA has minimum property standards — the home must be safe, sound, and secure. We'll help you understand what to look for so the appraisal doesn't surprise you.

Step 4

Submit Your Documents

Two years of tax returns, W-2s, pay stubs, and bank statements. We give you a complete checklist so nothing is missing and nothing slows down your closing.

Step 5

Close and Get Your Keys

FHA closing costs are competitive and can often be negotiated into the purchase price. You'll pay the upfront MIP (1.75%) which can be financed into the loan.

Step 1

Free Consultation — No Credit Pull

We review your credit score, income, and goals. We'll tell you upfront whether FHA is your best path or if another program makes more sense.

Step 2

Pre-Approval in 24 Hours

Once you're ready, we pull credit and issue a pre-approval within one business day — typically faster than most lenders. Your pre-approval is what sellers and agents need to see.

Step 3

Find Your Home

FHA has minimum property standards — the home must be safe, sound, and secure. We'll help you understand what to look for so the appraisal doesn't surprise you.

Step 4

Submit Your Documents

Two years of tax returns, W-2s, pay stubs, and bank statements. We give you a complete checklist so nothing is missing and nothing slows down your closing.

Step 5

Close and Get Your Keys

FHA closing costs are competitive and can often be negotiated into the purchase price. You'll pay the upfront MIP (1.75%) which can be financed into the loan.

Who This Is For

FHA Is a Great Fit If…

FHA exists to open homeownership to borrowers who don't fit the conventional mold. Here's who benefits most.

You're a First-Time Buyer
FHA's 3.5% down requirement and flexible credit standards are designed specifically to help first-time buyers get into a home.
Your Credit Score Is Below 620
Conventional starts at 620. FHA considers scores from 500 — with 3.5% down at 580+ and 10% down at 500–579.
Your Debt-to-Income Ratio Is High
FHA allows higher DTI than conventional — helpful for borrowers with student loans, car payments, or other recurring obligations.
You're Using Gift Funds for Your Down Payment
FHA allows 100% of the down payment to come from gift funds — from family, employers, or eligible assistance programs.
You Have a Recent Credit Event
Bankruptcy, foreclosure, or a short sale don't automatically disqualify you. FHA has specific waiting periods and then you can qualify again.
You Want to Refinance Into a Better Rate
If you already have an FHA loan, the streamline refinance lets you lower your rate quickly with minimal paperwork and no appraisal in most cases.

The FlexPoint Difference

Why Borrowers Choose FlexPoint for FHA Loans

Nearly 30 years and over $5 billion funded. Here's what that means on your FHA loan.

500

Min Credit Score

We go as low as FHA guidelines allow — no overlays that exclude borrowers HUD says can qualify.

3.5%

Min Down Payment

As little as 3.5% down for borrowers with 580+ credit score. Gift funds fully accepted.

No Overlays

Pure HUD Guidelines

We don't add restrictions on top of FHA rules. If HUD says you qualify, we'll work with you.

Since 1996

In Business

Nearly 30 years helping borrowers navigate FHA guidelines and close on their first — and sometimes second — homes.

$5B+

In Loans Funded

Over $5 billion closed across every loan type. FHA is one of our most-used programs.

Free Consultation

Find Out If You Qualify Today

Takes less than 60 seconds. No credit pull. We'll review your scenario and let you know exactly where you stand.

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Estimated Loan Amount$300,000

$50,000$3,500,000+

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NMLS #243082
Multi-State Licensed

By submitting this form, you consent to be contacted by FlexPoint Inc. regarding your inquiry. This is not a commitment to lend. All loans subject to credit approval. Restrictions apply. Some products may not be available in all states. FlexPoint Inc. NMLS #243082.

FAQ

Frequently Asked Questions About FHA Loans

The questions first-time buyers and FHA borrowers ask us most.

Don't Let Your Credit Score Stop You. Let's See What's Possible.

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