FHA Home Loans

Affordable, Flexible Financing for Buyers With Limited Savings or Credit Challenges

Overview

FHA loans are backed by the Federal Housing Administration and are designed to make homeownership accessible for buyers who may not qualify for conventional financing. With low down payment requirements and flexible credit guidelines, FHA is a strong option for many first-time buyers across Virginia.

Key Benefits

✓ Low Down Payment

As little as 3.5% down with a qualifying credit score.

✓ More Flexible Credit Requirements

Borrowers with less-than-perfect credit or shorter credit histories often qualify.

✓ Competitive Rates

FHA rates can be similar to or even lower than conventional rates for credit-challenged borrowers.

✓ Higher Debt-Tolerance

FHA allows more flexible debt-to-income ratios, making qualification easier.

✓ Refinancing Options

FHA Streamline Refinances offer reduced documentation and faster processing.

Who FHA Loans Work Best For

FHA may be ideal if you:

• Are buying your first home

• Have a lower credit score

• Have limited funds for a down payment

• Want easier qualification standards

• Are rebuilding financial stability

• Prefer predictable, fixed-rate payments

Mortgage Insurance on FHA

All FHA loans require:

• Upfront Mortgage Insurance Premium (UFMIP)

• Annual mortgage insurance (paid monthly)

Some buyers later refinance into conventional loans to remove mortgage insurance when equity improves.

Property Requirements

FHA homes must meet certain safety and property standards. They do not need to be brand new, but they must be safe and structurally sound.

Frequently Asked Questions

Is FHA only for first-time buyers?

No — it’s available to all buyers, but many first-time buyers choose it.

Can I use FHA for a second home?

FHA is for primary residences only.

Can I buy a fixer-upper?

Yes — through the FHA 203(k) renovation loan program.