What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to make homeownership more accessible. It's one of the most common loan types for first-time buyers because of its lower down payment and more flexible credit requirements compared to a conventional loan.
Comparing programs? My overview of special home loan programs in Virginia puts every option side by side.
Down payment and credit requirements
FHA loans allow down payments as low as 3.5% for qualifying credit scores, and generally have more flexible credit requirements than conventional loans. This can make FHA a strong option if you're still building credit or don't have a large down payment saved.
How much you can borrow depends largely on your debt-to-income ratio. Before you talk to a lender, my home affordability calculator can show you a realistic monthly budget and price range based on your income and current payments.
Mortgage insurance on FHA loans
Unlike VA loans, FHA loans require mortgage insurance premiums (MIP), both upfront and as part of your monthly payment. It's worth comparing this cost against a conventional loan with private mortgage insurance (PMI) — a lender can run both scenarios so you can see which actually costs less over time.
How I help FHA buyers
I connect first-time buyers with lenders who explain FHA requirements clearly and help you understand your real monthly payment, not just the purchase price. Wondering which lender to use? My guide to the best FHA lenders in Hampton Roads explains local vs. national lenders and banks vs. mortgage lenders. Visit my First-Time Homebuyers page for the full step-by-step home-buying process.
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