FHA loans: a smaller down payment and more room for past credit trouble
FHA loans are insured by the Federal Housing Administration, which lets lenders accept smaller down payments and lower credit scores than most conventional loans.
Call any time. An automated assistant answers day and night, takes your details and books a callback with Stella.
The basics
- 3.5% down with a credit score of 580 or higher
- 10% down may be possible with a score from 500 to 579
- Gift money from family can cover the down payment
- The home must be your primary residence, and the loan must be within the FHA limit for the county
Mortgage insurance on an FHA loan
FHA loans carry an upfront mortgage insurance premium, usually added to the loan, and an annual premium paid monthly. With less than 10% down, the annual premium generally lasts for the life of the loan. With 10% or more down, it ends after 11 years.
That is why some buyers start with FHA and later refinance to a conventional loan once they have enough equity. Stella can show you both options side by side.
Who it suits
FHA often fits buyers with a score below about 680, a higher debt-to-income ratio, or a past bankruptcy or foreclosure that is a few years behind them. The one-minute check shows whether FHA is worth asking about.
Common questions
Is FHA only for first-time buyers?
Can I remove FHA mortgage insurance?
Talk it through with Stella
Send her a short note or call (918) 395-9200. No credit check until you say so.
Programs are subject to eligibility, underwriting and lender guidelines; not all applicants will qualify. Nothing on this page is a commitment to lend or a rate quote. Raystar Mortgage Group Inc, NMLS 305952. Stella Courtney, NMLS 307689. Equal Housing Lender.