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FHA Loan: making homeownership more accessible to first-time buyers

FHA loans are mortgages backed by the Federal Housing Administration (FHA), and unlike traditional mortgages, they do not require that applicants have high credit scores or make a large down payment.


These types of loans are very popular among people who are new to the process of buying a home, given that when it comes to an FHA loan, the minimum down payment is 3.5% or 10%, depending on your FICO credit score, besides of meeting particular borrower and property requirements to get this type of loan. 


The FHA Loan Requirements for 2022 are:


  • Minimum Down Payment: 3.5% with a credit score above 580; 10% with a credit score between 500 and 579.
  • Minimum Credit Score: 500
  • Maximum Debt-to-Income Ratio: Front-end DTI (mortgage payments only): 31% Back-end DTI (all debt payments): 43%
  • Minimum and Maximum Income: no minimum or maximum income
  • Documentation Needed:
    • Proof of Social Security number
    • Driver’s license
    • Proof of employment (e.g., original pay stubs, W-2s, 1099s)
    • Permanent address and proof of residence
    • Federal income tax returns from the past two years
    • Bank statements
  • If refinancing: notes and deeds from other mortgages, property tax bill, homeowner’s insurance, rental agreements (if applicable)
  • Loan Limits: 
Single $420,680 $970,800
Duplex $538,650 $1,243,050
Tri-plex $651,050 $1,501,475
Four-plex $809,150 $1,867,275

* Loan limits by state and county can be found on the FHA website.


Please reach out when you’re ready to explore financing options for your home.

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