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Loan program · FHA

FHA Loans — Flexible Credit, 3.5% Down

An FHA loan is a government-insured mortgage with as little as 3.5% down and credit guidelines far more forgiving than conventional — lower scores, higher debt-to-income ratios, and shorter waiting periods after credit events all have a path. Rates often price below conventional for the same buyer. Down payment can be a gift, and the loan is assumable — a future buyer may be able to take over your rate.

3.5% down with flexible credit — the workhorse for buyers banks say no to. Straight answers below, and a calculator that runs your numbers with today's averages.

Run your numbers

Purchase price$1,000,000
Down payment20% · $200,000
FHA Loan est. payment$4,791/mo

Principal & interest at 5.990% (avg 6/22/2026) over 30 years on $800,000. Taxes, insurance, and any mortgage insurance or program fees not included. Informational only, not a commitment to lend.

The numbers

3.5%

Minimum down

and the entire down payment can be a gift

Flexible

Credit

lower scores and higher DTIs have a path

Often lower

Rates

FHA frequently prices below conventional

Assumable

Loan

a future buyer may take over your rate

Who it fits

  • Buyers with thinner or rebuilding credit — FHA is designed to say yes where banks hesitate.
  • Higher debt-to-income scenarios that conventional underwriting won't stretch to.
  • Buyers using gift funds for the down payment.
  • Anyone within a few years of a credit event (bankruptcy, short sale) — the waiting periods are shorter.

Straight answers

FHA's floor is far below conventional — many lenders work down to the 500s with compensating factors. If a bank told you no, ask me before you give up.

3.5% with a 580+ score, and all of it can be gifted by family. On a $700,000 purchase that's $24,500.

FHA has an upfront premium (financed into the loan) and a monthly premium. The trade is approvability and rate — and you can refinance out of it later as equity grows.

No — any buyer purchasing a primary residence can use FHA.

A qualified future buyer can take over your FHA loan at its existing rate. In a higher-rate market, that's a real selling point for your home.

Your loan officer

Brett Hickman

Home First Financial

Brett Hickman

Mortgage Loan Originator · NMLS #2010859

+19493508005

Text Brett to check eligibility →