FHA Loan
"Low down payment. Flexible credit."
Only 3.5% down with credit scores as low as 580. FHA loans make homeownership accessible, especially for first-time buyers who need a helping hand.
3.5%
Min Down
500+
Min Credit
$498K-$1.15M
Max Loan
Is This Loan Right for You?
This Loan is Perfect If You...
- First-time buyer with limited savings
- Credit score between 580-699
- Using gift funds for down payment
- Want seller to help with closing costs
- Need flexible DTI requirements
This Might NOT Be Right If...
- Credit 720+ (conventional may be cheaper)
- Have 20% down payment saved
- Buying investment property
- Need loan above $1.15M
- Want to avoid mortgage insurance for life
FHA Loan Benefits
Everything you need to know about your benefits
Low Down Payment
Just 3.5% down with a 580+ credit score. Keep more cash for moving costs, furniture, or emergencies.
Flexible Credit Requirements
Credit scores as low as 500 accepted. Past credit challenges don't have to stop your homeownership dreams.
100% Gift Funds Allowed
Your entire down payment can come from family, employers, or approved down payment assistance programs.
Seller Contributions Up to 6%
Sellers can contribute up to 6% toward your closing costs—reducing your out-of-pocket expenses.
Assumable Loan
Future buyers can take over your FHA loan at your locked-in rate—a valuable selling feature in rising rate environments.
Competitive Interest Rates
Government backing often means lower rates than conventional loans for borrowers with credit under 720.
How It Works
Your path to homeownership in just a few simple steps
Get Pre-Approved
We'll review your credit, income, and assets to determine your FHA loan amount. Takes about 15 minutes.
Find Your Home
Shop with confidence knowing your budget. Remember, the property must meet FHA standards.
FHA Appraisal
An FHA-approved appraiser verifies the home meets minimum property requirements and market value.
Underwriting & Approval
Our team processes your loan while you complete inspections and prepare for closing.
Get Pre-Approved
We'll review your credit, income, and assets to determine your FHA loan amount. Takes about 15 minutes.
Find Your Home
Shop with confidence knowing your budget. Remember, the property must meet FHA standards.
FHA Appraisal
An FHA-approved appraiser verifies the home meets minimum property requirements and market value.
Underwriting & Approval
Our team processes your loan while you complete inspections and prepare for closing.
Close & Move In
Sign your documents, get your keys, and start your homeownership journey!
Understanding FHA Mortgage Insurance (MIP)
FHA loans require mortgage insurance premium (MIP) — here's how it works
Upfront MIP
One-time at closing
Rolled into your loan amount at closing
Annual MIP
Paid monthly
Paid monthly as part of your mortgage payment
Example: $350,000 Loan
Upfront MIP
$6,125
Added to loan balance
Monthly MIP
$160
Part of your payment
Good to Know
MIP is required for the life of the loan on most FHA mortgages. Many borrowers refinance to conventional once they reach 20% equity to eliminate mortgage insurance.
FHA vs Conventional: Which is Better for You?
| Feature | FHA Loan(This loan) | Conventional |
|---|---|---|
| Minimum Down Payment | 3.5% | 3% |
| Minimum Credit Score | 500 | 620 |
| Mortgage Insurance | MIP for life (most cases) | PMI until 20% equity |
| Seller Contributions | Up to 6% | Up to 3% |
| Loan Limits | $498K-$1.15M | $766K-$1.15M |
| Gift Funds | 100% allowed | Varies by LTV |
| Property Standards | Strict HUD requirements | Standard appraisal |
| Assumable | Yes | No |
| Best For | Credit 500-699, first-time buyers | Credit 700+, 20% down |
* Rates and terms subject to change. Contact us for current offers.
Frequently Asked Questions
Common questions about FHA Loan
Last updated:
What is an FHA loan and who is it for?
An FHA loan is a mortgage insured by the Federal Housing Administration, designed to help first-time homebuyers and those with lower credit scores achieve homeownership. It's ideal for buyers who have limited savings for a down payment or credit scores below 700.
What credit score do I need for an FHA loan?
With a credit score of 580 or higher, you can qualify with just 3.5% down. Scores between 500-579 require 10% down. CMS Mortgage works with borrowers across the credit spectrum to find the best solution.
How much is FHA mortgage insurance (MIP)?
FHA MIP has two parts: an upfront premium of 1.75% (usually rolled into your loan) and an annual premium of 0.55% paid monthly. On a $350,000 loan, that's about $160/month for the annual MIP.
- For most FHA loans with less than 10% down, MIP is required for the life of the loan. The common strategy is to refinance into a conventional loan once you reach 20% equity to eliminate mortgage insurance entirely.
- Yes! 100% of your FHA down payment can come from gift funds from family members, employers, or approved down payment assistance programs. You'll need a gift letter documenting the source.
- FHA loan limits vary by county. The floor is $498,257 for single-family homes in most areas, with a ceiling of $1,149,825 in high-cost areas. We can check your specific county limits during pre-approval.
Get Rate Drop Alerts
We'll notify you instantly when rates drop to your target.
Low Down Payment. Flexible Credit.
FHA loans have helped millions of Americans become homeowners. You could be next.
Or call us directly: (757) 558-2603