The loan that says yes more often.
Backed by the Federal Housing Administration, FHA loans approve credit profiles and debt ratios that conventional lending turns away — with just 3.5% down. Rates often beat conventional for scores under about 700. We shop FHA hard across our lender network.
FHA fits you if…
- Your credit is rebuilding
Scores in the 580–680 range often price better on FHA than conventional. - Your debt ratio is tight
FHA allows higher DTI than conventional guidelines. - Cash is the constraint
3.5% down, gift funds welcome, and sellers can cover closing costs. - A past event is aging off
Shorter waiting periods after bankruptcy or foreclosure than conventional.
The honest trade-offs
- Mortgage insurance runs long
An upfront premium (1.75%, financed) plus a monthly one — and on most FHA loans the monthly portion lasts the life of the loan. - The exit strategy
That's why we treat FHA as a great starting loan: build equity and credit, then refinance into conventional and drop the MIP. We flag the moment it makes sense. - Property standards
The FHA appraisal checks condition (safety, soundness). Fine for most homes; fixer-uppers may need repairs before closing.
FHA + Texas assistance
FHA pairs with Texas down-payment assistance programs (like TSAHC and TDHCA offerings) that can cover part or all of the 3.5%. Programs change; we check what's live when you apply and layer what helps.
Eligible for VA instead? VA beats FHA nearly every time — $0 down and no monthly mortgage insurance at all.
FAQ
What's the minimum credit score?
580 for 3.5% down under FHA rules (500–579 with 10% down). Individual lenders add their own minimums — the advantage of a broker is we know whose minimum is whose.
How much is FHA mortgage insurance?
1.75% of the loan upfront (usually financed into the loan) plus an annual premium around 0.55% of the balance, paid monthly. We put the exact figure in your quote so there's no surprise.
Can I ever get rid of the monthly MIP?
With less than 10% down it lasts the life of the loan — the escape is refinancing into conventional once you have roughly 20% equity. We track it and call you when the math works.
FHA or conventional with 3% down?
It hinges on your credit score and mortgage insurance pricing. Above ~700, conventional usually wins; below, FHA often does. We quote both in one pass.
Find out what FHA gets you.
A real rate for your actual credit profile, in about a minute, with no credit pull.