Government-backed mortgages for first-time buyers.
An FHA loan is a type of mortgage insured by the Federal Housing Administration (FHA), overseen by HUD. While the government insures these loans, they're underwritten and funded by FHA mortgage lenders like OptionOne. Ideal for borrowers with lower credit or smaller down payments.
Choose the right FHA loan
for your needs.
Four flavors of FHA financing covering purchase, renovation, energy upgrades, and refinance.
FHA 203(k)
Allows homeowners to finance up to $35,000 for home repairs and improvements. Use it to buy a fixer-upper and cover renovation costs in one loan.
- Up to $35,000 for home repairs and improvement
- Buy a fixer-upper and cover renovation costs
Energy-Efficient Mortgage
Finance up to $35,000 for energy-efficient improvements. Finance green upgrades into your mortgage and lower long-term operating costs.
- Up to $35,000 for energy-efficient improvements
- Finance green upgrades with your mortgage
FHA Cash-Out Refinance
Access home equity for renovations or improvements. Cash out for repairs, major upgrades, or other financial needs while keeping FHA financing.
- Access home equity for renovations
- Cash out for repairs or improvements
FHA Streamline Refinance
Simplified refinance process with lower documentation requirements for existing FHA borrowers. Often no appraisal required.
- Simplified refinance process
- Lower documentation requirements
FHA loan requirements.
FHA loan details.
FHA Loan
Federal Housing Administration-insured mortgage program.
Qualification Details
- Credit Score 580+ (or 500–579)
- Down Payment 3.5% or 10%
- DTI Ratio 43% (up to 50%)
- Occupancy Primary residence only
- Term 15, 20, 30 yr fixed
Mortgage Insurance
- Upfront MIP: 1.75% of loan principal, paid at closing
- Annual MIP: 0.15%–0.75% paid monthly
- With less than 10% down, MIP for life of loan
- With 10%+ down, MIP can be removed after 11 years
- Refinance to conventional to eliminate at 20% equity
- Loan limits vary by county
Real results.
Real reviews.
Frequently asked questions.
FHA loans are ideal for first-time homebuyers, those with lower credit scores, or borrowers who may not have a large down payment. With down payments as low as 3.5% and flexible credit requirements, FHA loans make homeownership more accessible.
You'll generally need the past two years' tax returns, two recent pay stubs, your driver's license or other official ID, and full statements of your assets (checking, savings, 401(k), and any other places you hold money).
FHA loans offer lower down payment requirements and more flexible credit standards than conventional loans. However, they require mortgage insurance premiums (MIP) both upfront and annually. Conventional loans may have stricter requirements but can offer lower overall costs for well-qualified borrowers.
For FHA loans with less than 10% down, MIP is required for the life of the loan. With 10% or more down, MIP can be removed after 11 years. The only way to eliminate MIP entirely is to refinance to a conventional loan once you have sufficient equity and meet conventional lending requirements.
Ready to explore FHA financing?
Down payments as low as 3.5% and flexible credit requirements. Talk to an FHA specialist now.