FHA Loans: Affordable Home Financing Made Simple

FHA loans are designed to help families and first-time buyers get into

homes with lower down payments and more flexible credit rules.

Why FHA Loans Make Homeownership Easier

FHA loans are designed to lower the barriers to buying a home.

3.5% Down

Unlike some conventional loans, FHA only requires a tiny down payment, which can even be gifted by family members.

Credit Friendly

Have a score in the 580s? FHA is often the most viable path to approval when traditional banks turn you away.

Seller Concessions

FHA allows sellers to pay up to 6% of your closing costs, meaning you could move in with very little cash out of pocket.

FHA Eligibility Guidelines

The Federal Housing Administration sets these

rules to ensure affordable lending.

FHA Eligibility Guidelines

The Federal Housing Administration sets these rules to ensure affordable lending.

1 Credit Score

A score of 580 or higher qualifies for the 3.5% down payment. (Scores 500-579 require 10% down).

2 Income Stability

FHA loans offer flexible income guidelines, allowing multiple income sources to help more buyers qualify.

3 Debt-to-Income (DTI)

Ideally 43% or lower, but FHA is famous for allowing ratios as high as 50% or 57% with compensating factors.

4 Primary Residence

For purchases, FHA loans are for primary residences only. However, existing FHA loans may be refinanced on investment or second homes.

5 FHA Appraisal

The home must meet minimum safety and habitability standards, but FHA 203(k) loans allow buyers to finance repairs and improvements to meet those standards.

6 Insurance (MIP)

FHA requires an upfront and monthly Mortgage Insurance Premium (MIP) for the life of the loan.

7 Down Payment Assistance

FHA loans work with many down payment assistance programs, helping reduce upfront costs for qualified buyers.

Mortgage Payment Calculator

Estimate your monthly mortgage payment using home price, down payment, interest rate, and loan term. Get a quick principal and interest estimate for your home buying budget.

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What Our Clients Are Saying

Don't just take our word for it. Hear from the families we've helped

secure their dream homes.

Frequently Asked Question

How much can I save by making extra mortgage payments?

The savings depend on your loan balance, interest rate, and how much extra you pay. For example, adding $200 per month to a $300,000 mortgage at 6.38% can save you over $72,000 in interest and cut roughly 6 years off a 30-year loan. Use the calculator above to see your exact savings.

Should I make extra mortgage payments or invest the money?

It depends on your financial situation. Extra mortgage payments offer a guaranteed return equal to your interest rate with zero risk. If your mortgage rate is 6% or higher, paying it down is a strong choice. However, if you have high-interest debt like credit cards, pay those off first. Consider maxing out tax-advantaged retirement accounts before making extra mortgage payments.

Is it better to pay extra monthly or make a lump sum payment?

Both approaches reduce your balance and save interest, but monthly extra payments typically work better for most people because they build a consistent habit and reduce your principal steadily throughout the year. A lump sum payment is effective if you receive a bonus or inheritance. The key factor is timing: the earlier you make extra payments, the more interest you save.

Do extra mortgage payments go toward the principal?

Yes, when you make an extra payment and specify it as a principal-only payment, the entire amount goes toward reducing your loan balance. This is different from your regular payment, which splits between principal and interest. Always confirm with your lender that extra payments are applied to principal, not future payments.

Are there penalties for paying off a mortgage early?

Most modern mortgages do not have prepayment penalties. FHA loans, VA loans, and loans from federally chartered credit unions prohibit prepayment penalties by law. However, some conventional loans may include a penalty during the first 3 to 5 years. Check your loan agreement or ask your lender before making large extra payments.

How do biweekly mortgage payments work?

Instead of making 12 monthly payments per year, you pay half your monthly amount every two weeks. Since there are 52 weeks in a year, this results in 26 half-payments, which equals 13 full monthly payments. That one extra payment per year can shave several years off your mortgage and save thousands in interest.

Your first home starts right here. 

Our FHA specialists guide you through the process,
from credit repair tips to finding the right
down-payment assistance programs.