FHA loans are mortgages insured by the Federal Housing Administration (FHA) and offered by private lenders like Freedom Mortgage. These loans make buying or refinancing a home easier when you have a moderate income, less-than-perfect credit, or less money for a down payment. You will need to meet credit, income, and financial requirements to get approved for an FHA loan.

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• Competitive interest rates. FHA loans have rates that are competitive with other types of mortgage loans.
• Lower down payment. Many homebuyers can get approved for FHA loans with a minimum down payment as low as 3.5% of the purchase price. Conventional loans often require a 5% minimum down payment.
• Low credit score requirement. At Freedom Mortgage, we can often accept a minimum credit score as low as 550 to buy a home with an FHA loan. Learn more about FHA loan credit scores.
• More flexible qualifications. The qualifications for FHA loans are more flexible than other loans. You need to be able to make at least a 3.5% down payment, and provide financial documentation like proof of income. Learn more about FHA loan requirements.
• No minimum income. FHA loans do not have any minimum income requirements. You will need to demonstrate you have enough income to make the monthly payments.

• Mortgage insurance premiums. FHA loans come with an upfront mortgage insurance premium (UFMIP) and monthly mortgage insurance premiums (MIP). Conventional loans do not require mortgage insurance if you make a down payment of 20% or more of the home's purchase price.
• Loan limits. The Federal Housing Administration sets limits on how much money you can borrow with an FHA loan. These loan limits vary by county. Learn more about FHA loan limits.
• Primary residence only. An FHA loan can only be used to finance your primary residence, which is the home where you live most of the time. FHA loans cannot be used for second homes, rental homes, or investment properties.
• One loan at a time. In most circumstances, you cannot have more than one FHA loan at the same time.
• Minimum property requirements. The Federal Housing Administration requires that homes backed by FHA loans must be safe, sound, and secure. If you get an FHA loan, you will need an appraisal to prove that the home meets the FHA's property requirements.

• Provide proof of income and income history. You will have to prove you can afford to make your monthly FHA loan payments. Proof typically includes providing pay stubs and W-2 forms. Learn more about FHA loans and income.
• Demonstrate established credit. While you are more likely to be approved for an FHA loan if you have a higher credit score, you can still get approved with a lower credit score. Learn more about FHA loans for poor credit.
• Meet debt-to-income ratio requirements. Debt-to-income ratio (DTI) helps lenders determine how much money they're willing to loan you. FHA loans typically allow for a DTI of up to 43% for qualified homebuyers. Learn more about debt-to-income ratios for mortgages.
• Be able to make a down payment. FHA loans require a minimum down payment of 3.5% of the purchase price of the home. Learn more about FHA loan down payments.
• Meet FHA property requirements. An FHA-certified appraiser must state the property meets health-and-safety requirements. Learn more about FHA appraisal guidelines.
• Pay mortgage insurance premiums. FHA loans come with an upfront mortgage insurance premium (UFMIP) and monthly mortgage insurance premiums (MIP). On March 20, 2023, the Department of Housing and Urban Development (HUD) reduced mortgage insurance premiums for new loans, which saved almost 700,000 FHA borrowers an average of $876 per year. Learn more about FHA mortgage insurance.
• Pay closing costs. Like other types of home loans, FHA loans come with closing costs. These include appraisal fees, title searches, and application fees. The U.S. Department of Housing and Urban Development (HUD) estimates that FHA closing costs average between 3–4% of the sale price of the home. Learn more about FHA closing costs.

FHA loans typically require smaller down payments with more flexible credit score requirements than other types of mortgages. Conventional loans typically require higher down payments and higher minimum credit scores, but can offer you competitive rates, better terms, and less expensive mortgage insurance requirements. Learn about the differences between FHA loans and conventional loans.

The FHA rate we may be able to offer is personal to you. Your interest rate is affected by the type of loan you want, your credit score, your income and finances, as well as the current mortgage market environment. Freedom Mortgage may be able to offer you a rate that is lower—or higher—than the rate you see advertised by other lenders. Ask us today what FHA loan rate we can offer you. Call a Loan Advisor at 877-220-5533.