FHA / HUD Mortgage Loan Requirements

Federal Housing Administration (FHA) or Housing and Urban Development (HUD) loans are one of the easiest mortgage loans to qualify for, making them popular for both first-time home buyers and repeat buyers.

FHA / HUD loans allow a broader credit score range and a lower minimum down payment making this another reason they are popular with first time home buyers. One drawback of a this type of loan is the maximum loan amount, which varies by county. For example, the maximum FHA loan for the Dallas-Ft Worth area is $362,250.

FHA / HUD loans only require a 3.5% minimum down payment, compared to 5% or more for a conventional loan. Up to 6% of closing costs can be rolled into the loan amount. Borrowers will pay private Mortgage Insurance (PMI) guaranteed by the FHA for the life of the loan, protecting the lender from loss if the borrower defaults. Additionally, at least one of the borrowers must plan to make the home their primary residence.

More Loan Types

Conventional Loans

Conventional loans are often the best option for home buyers with a good credit score and the ability to make larger down payments.

VA Loans

VA loans are available to eligible U.S. military veterans, active duty service members, National Guard, Reservists, and surviving spouses.

USDA Loans

USDA loans are only available in rural areas; however, 97% of the U.S. classifies as “rural” under this loan program.

Jumbo Loans

Jumbo loans are used for mortgage loans over $424,100. A strong FICO score, generally 680 or better, is required to qualify for a jumbo loan.

GET STARTED!

If you’re ready to start the process or starting to think about a new home loan, fill out our quick form to get started. We’ll help answer any questions and let you know what to expect. If you’re ready to get started, we’ll do that too. Just fill out our quick form and we’ll be in touch soon.

Resources & Tools

We’ve compiled a variety of resources to help borrowers of all types make sense of the process. And when you’re ready to get started, our team is here to help.

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