The mortgage built for buyers who are ready but still building.
For many firefighters, the biggest barrier to homeownership is the upfront cost. FHA loans offer more flexible qualification standards than conventional mortgages, making homeownership accessible to first-time buyers and those still building credit or savings. Subject to credit approval and program guidelines. Terms are subject to change.
What sets an FHA loan apart from conventional?
FHA loans offer more flexible qualification standards than most conventional mortgages. Here is what sets them apart.
How does mortgage insurance work on an FHA loan?
FHA loans require Mortgage Insurance Premiums regardless of your down payment amount. Unlike conventional PMI, MIP applies to all FHA loans, but the qualification standards are more flexible in return.
What is the minimum down payment for an FHA loan?
At least 3.5%.
Are there loan limits I should know about?
FHA loan limits vary by county and are updated annually by HUD. The limit in your area depends on local housing prices. Contact a mortgage consultant.
Not sure if your property qualifies? Here is what FHA covers.
FHA loans cover a range of property types, but not all. Here is a quick look at what is eligible before you apply.
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Single-family homes and townhomes. -
FHA-approved condominiums.
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Two to four unit owner-occupied properties.
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Planned Unit Developments.
What to know about FHA mortgage insurance.
FHA loans require upfront and monthly mortgage insurance premiums. Below 10% down, insurance stays for the life of the loan. At 10% or more, it drops after 11 years. Refinancing into conventional is common once equity builds.
FHA or conventional? Here is how to decide.
An FHA loan offers more flexibility upfront while a conventional loan can cost less over time if you qualify. Our mortgage consultants work with Fire Family members every day to help you choose the right path before you apply.
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Low down payment options. -
Flexible credit standards. -
Avoid PMI with 20% down.
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Better rates, stronger credit.
Start your FHA loan with confidence.
Take the first step with guidance that understands your FHA benefit. Apply today and move forward with clarity, speed and support at every stage.
Everything you need to know about FHA loans.
What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. Because the federal government insures the loan, lenders can offer more flexible credit and down payment requirements than conventional mortgages. FHA loans are a common choice for first-time homebuyers and those with limited savings or shorter credit histories.
How much do I need for a down payment?
The minimum down payment for an FHA loan is 3.5% of the purchase price for borrowers who meet the minimum credit score requirement. Borrowers with credit scores between 500 and 579 are typically required to put at least 10% down.
What credit score do I need?
A score of 580 or higher generally qualifies for the 3.5% minimum down payment. Scores between 500 and 579 may still qualify with a larger down payment. Contact a mortgage consultant to discuss your specific situation.
What is the debt-to-income ratio requirement?
FHA guidelines generally require a debt-to-income ratio below 43%, though lenders may allow exceptions with compensating factors such as strong reserves or a long employment history.
Do FHA loans require mortgage insurance?
Yes. FHA loans require both an Upfront Mortgage Insurance Premium (UFMIP), which is typically rolled into the loan, and an Annual Mortgage Insurance Premium (MIP) paid monthly. For loans with less than 10% down, mortgage insurance remains for the life of the loan. For loans with 10% or more down, it can be removed after 11 years.
Can I use an FHA loan to buy a condo or multi-unit property?
Condominiums must be FHA-approved to qualify. Multi-unit properties of two to four units are eligible as long as you occupy one of the units as your primary residence. Contact a mortgage consultant to confirm eligibility for a specific property.
Can I refinance with an FHA loan?
Yes. FHA loans can be used for purchase or refinance. If you currently have an FHA loan, you may also be able to use an FHA Streamline Refinance, which involves simplified documentation. If you have built equity and want to eliminate mortgage insurance, refinancing into a conventional loan is an option worth discussing with a mortgage consultant.
What are FHA loan limits?
FHA loan limits are set by HUD and vary by county based on local housing prices. They are updated annually. Contact a mortgage consultant or visit our rates page for current limits in your area.
Is Firefighters First Credit Union affiliated with the FHA or HUD?
No. Firefighters First Credit Union is not affiliated with or endorsed by the Federal Housing Administration or the U.S. Department of Housing and Urban Development. We are an FHA-approved lender, which means we are authorized to originate FHA loans on behalf of qualified borrowers.
Firefighters First Credit Union is an Equal Housing Lender. This is not a commitment to lend. Loans are subject to credit approval and program guidelines. Terms and conditions apply and are subject to change without notice. Firefighters First Credit Union is not affiliated with or endorsed by the U.S. Department of Housing and Urban Development (HUD) or the Federal Housing Administration (FHA).
NMLS ID #649058.
Subject to credit approval.