FHA · Government-backed

3.5% down. Credit from 580.

FHA loans are insured by the Federal Housing Administration, which means lenders can underwrite to softer credit and down-payment thresholds. Built for first-time buyers, lower-credit borrowers, and anyone whose down-payment math doesn't pencil at 5%+.

3.5% down with credit 580+
10% down with credit 500–579
Gift funds allowed for the entire down payment
Higher DTI tolerance (up to 56.9% on strong files)
Streamline refinance available later — no new appraisal
3-2-1 buydowns for lower payment in years 1–3

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NMLS# 2718409Equal Housing Opportunity

Best fit when

FHA is built for these borrowers.

First-time homebuyer

FHA was designed for first-time buyers. 3.5% down with gift funds keeps your savings intact.

Credit score 580–679

Conventional pricing punishes credit under 680. FHA underwrites the same file at the same rate as 740 credit.

Down payment from a relative

100% gifted down payment is allowed. Conventional has stricter sourcing rules.

Higher DTI ratio

FHA accepts DTI up to 56.9% with compensating factors. Conventional usually caps at 50%.

Refi from a higher-rate FHA

FHA Streamline = no income docs, no appraisal. Just a rate-and-term improvement.

Buying with limited reserves

Reserves requirements are softer than conventional. 1–2 months PITIA usually enough.

Program details

What the lenders actually require.

Down payment

3.5% with credit 580+, 10% with credit 500–579.

Credit score

Minimum 500 by FHA rules. Most lenders set their floor at 580. Manual underwriting available.

DTI

Up to 56.9% with strong compensating factors. 43% is the standard auto-approval threshold.

MIP

Upfront 1.75% (financed) and annual MIP of 0.55% (under 5% down) for the life of the loan or until refinanced.

Loan limits

Vary by county. Most Central FL counties: $524,225 single family in 2026.

Property

Primary residence only. 1–4 unit eligible.

Next step

Maybe FHA. Maybe not.

We run your file against FHA, conventional 3% down, and any down-payment-assistance programs you qualify for — side-by-side. The lowest payment wins, not the loudest pitch.

Get my comparison (407) 201-4403

No credit pull · No application fee · Equal Housing Opportunity