FHA Loan Fact Sheet 2025

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The FHA Loan Fact Sheet outlines the Federal Housing Administration's role in assisting first-time home buyers and lower-income Americans in purchasing homes. It highlights key features of FHA loans, including low down payment options (as low as 3.5%), eligibility for various assistance with closing costs, and leniency towards credit issues. The document details two main loan programs: the 203(b) fixed rate mortgage and the 203K mortgage for homes needing repairs. Eligibility criteria include a minimum credit score of 560 and specific debt-to-income ratios.

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Click ‘Get Form’ to open the FHA Loan Fact Sheet in the editor.
Begin by reviewing the 'Special Features' section. Here, you will find key information about down payment options and closing cost contributions. Fill in any relevant details based on your situation.
Next, navigate to the '203(b) Fixed Rate Mortgage Loan Program' section. Input your desired loan terms, including whether you prefer a fixed or adjustable rate option.
Proceed to the '203k Mortgage Loan Program' section if applicable. Indicate any cosmetic repairs or upgrades needed for your home and specify the estimated costs.
Finally, complete the 'Eligibility' section by entering your personal finance details such as credit score and debt-to-income ratio. Ensure all fields are filled accurately for a smooth application process.

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We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

Is it a good idea to get an FHA loan?

FHA loans offer a pathway to homeownership for borrowers with less-than-ideal credit scores and relatively low down payment funds on hand. But for borrowers with higher credit scores and more cash immediately available, a conventional loan might represent an equally valid homeownership strategy.

Why is conventional better than FHA?

A conventional loan is often better if you have good or excellent credit because your mortgage rate and PMI costs will go down. But an FHA loan can be perfect if your credit score is in the high-500s or low-600s. For lower-credit borrowers, FHA is often the cheaper option.

What is the downside of an FHA loan?

But there is a huge roadblock when it comes to FHA financing: FHAs Self-Sufficiency Rule. FHA has a requirement that 75% of the market rent from ALL of the units (including the owner-occupied unit) cover the full housing payment (principal, interest, taxes, insurance, and MI).

Why would someone not qualify for an FHA loan?

An FHA offer is less competitive because of what it signals to the seller. FHA buyers in general are putting 3.5% down because that is all they can afford. So they are often unable to close at all if there are problems with the appraisal, unless the seller drops the price.