FHA Loans

FHA Loans help many buyers get a home with a small down payment and flexible credit rules. “FHA” stands for the Federal Housing Administration. You work with a private lender (the JD.Mortgage team at Paramount Residential Mortgage Group, Inc.), and the FHA insures the loan, which makes approval easier for many people. Contact the JD.Mortgage team for friendly help.

Meet Your Team: J.D. Peck and the JD.Mortgage Team at PRMG

J.D. Peck leads the JD.Mortgage team at Paramount Residential Mortgage Group, Inc. We are a hybrid lender and broker serving 49 states (not New York). Our goal is simple: clear steps, plain language, and smart structure so your file moves fast. Learn more about the JD.Mortgage team.

FHA Loans: The Simple Explanation

An FHA Loan is a mortgage insured by the FHA. Because of this insurance, lenders can say “yes” more often to buyers with limited savings or past credit challenges. You still make a normal mortgage payment. The FHA does not lend the money; the lender does. See our step-by-step mortgage process.

Who FHA Loans Are Built For

FHA Loans are great for first-time buyers and for repeat buyers who want a lower down payment, flexible credit rules, and clear guidelines. If you have little savings, student loans, or a few late payments in the past, FHA can be a strong path. Review all loan options we offer.

Down Payment and Credit Score

If your credit score is 580 or higher, the minimum down payment is usually 3.5%. If your score is between 500–579, you may qualify with 10% down. We’ll look at your full credit picture, not just one number, and map the best route to approval. Estimate your down payment and monthly payment.

Debt-to-Income (DTI): What It Means

DTI compares your monthly debts to your income. FHA often allows up to 43% DTI, and sometimes higher with strong factors. We show you what counts as “debt,” and how tiny changes can tip your file from “almost” to “approved.” See how we prepare strong files.

Gift Funds and Help from Family

FHA allows qualified gift funds for your down payment and closing costs. Gifts must be true gifts with no payback and must be documented. We provide the exact gift letter and a simple checklist so this step is stress-free. Ask for our FHA gift checklist.

Seller Credits and Rate Buydowns

FHA lets a seller or “interested party” contribute up to 6% of the price toward approved costs, including points to buy down your rate. This can lower the cash you need at closing. We’ll structure this correctly for underwriting. Talk to us about using seller credits.

Student Loans with FHA

If a real payment shows on your credit report, we use it. If not (like deferment), FHA generally counts 0.5% of the balance as a payment for DTI. We help you document the lowest acceptable payment under the rules. Share your student loan details for a plan.

Mortgage Insurance (MIP)

FHA Loans have two kinds of mortgage insurance: an upfront premium (UFMIP), usually 1.75% of the base loan amount, and a monthly premium (annual MIP divided by 12). These premiums help make FHA possible for more buyers. We’ll run the math so you see the full cost clearly. Ask how refinancing can reduce total cost later.

2025 FHA Loan Limits (By County)

FHA sets a “floor” and a “ceiling” each year. For 2025, the one-unit floor is $524,225 and the one-unit ceiling is $1,209,750 (higher in AK/HI/territories). Your exact limit depends on your county. We’ll confirm your local number in minutes. Look up your FHA county loan limit.

What Properties Are Allowed?

FHA allows single-family homes, 2–4 unit homes (you must live in one unit), many approved condos (including eligible “Spot” approvals), and certain manufactured homes that meet FHA standards. Ask us to check a property’s FHA eligibility.

Appraisal and Property Condition

An FHA appraisal checks value and basic “safe, sound, secure” items—like working utilities, no safety hazards, and a healthy roof. Most normal homes pass with simple fixes, if any. We prepare buyers and sellers early so nothing is a surprise. See our appraisal prep tips.

FHA 203(k) for Fixer-Uppers

Want to buy and repair with one loan? FHA 203(k) allows this. “Limited” works for small projects; “Standard” works for larger renovations. We help you scope repairs, line up contractors, and close cleanly. Learn more about FHA 203(k) on HUD.

Assumable FHA Loans

FHA Loans are assumable. A qualified buyer can take over your FHA loan (and your interest rate). This can make your home more attractive when rates are high. We guide both buyers and sellers through assumptions. Ask how an assumption might help your move.

Co-Borrowers and Cosigners

FHA allows occupying and (in some cases) non-occupying co-borrowers. The right structure can help qualify when income or credit is tight. We’ll explain the cleanest path. Tell us about your co-borrower plan.

Closing Costs, Cash to Close, and Timelines

Plan for about 2%–5% of the price in typical closing costs (varies by market). We’ll give you an easy estimate early. Most FHA purchases close in about 30–45 days with quick responses and a clean checklist. Get your estimates now.

FHA for 2–4 Unit “House Hacking”

You can buy up to a 4-unit property with FHA if you live in one unit. Rent from the other units can help you qualify. This is a common starter path into real estate. Ask us for a 2–4 unit scenario.

FHA Streamline Refinance

Already have an FHA loan? The Streamline Refinance can lower your payment with less paperwork and often no appraisal. We’ll show your break-even and the total savings so the choice is simple. Compare refinance paths.

Common Myths—Made Simple

“FHA can’t win offers.” With a strong file, seller credits structured right, and tight timelines, FHA wins often. Ask for our strong FHA-offer checklist.

“Homes must be perfect.” FHA wants safe, sound, secure—not luxury. Most normal homes pass. See our appraisal prep tips.

“MIP makes FHA too expensive.” Sometimes FHA is still the best total payment when you compare rate, credits, and taxes. We’ll show the math. Run your numbers.

Top 25 FHA FAQs (Plain-English Answers)

1. What is an FHA Loan? A mortgage insured by the FHA that helps more buyers qualify. Back to top.
2. How much is the FHA down payment? Usually 3.5% with 580+ credit; 10% if 500–579. Estimate your down payment.
3. What credit score do I need? FHA can allow down to 500 in some cases; 580+ gets 3.5% down. Check your credit path.
4. What is MIP? Upfront and monthly mortgage insurance that supports access to FHA Loans. See how MIP affects your payment.
5. Can I use gift funds? Yes—true gifts from allowed donors, with documentation. Get our gift letter template.
6. Are FHA Loans only for first-time buyers? No—any qualified buyer can use FHA. See our buyer resources.
7. What are FHA loan limits? County-based; 2025 floor $524,225 and ceiling $1,209,750 for one-unit homes. Find your county limit.
8. Can I buy a 2–4 unit home? Yes, if you live in one unit; rent may help you qualify. Run a 2–4 unit analysis.
9. Does FHA have income caps? No strict income caps; DTI still matters. Understand DTI.
10. Are FHA Loans assumable? Yes—qualified buyers can assume your FHA loan and rate. Ask about assumptions.
11. Can I refinance an FHA Loan? Yes—Streamline and other options exist. Compare refinance choices.
12. What are typical closing costs? Often 2%–5% of price; seller credits can help. Request a cost breakdown.
13. Can I use FHA for a fixer-upper? Yes—FHA 203(k) combines purchase and repairs. Read about 203(k).
14. How long does FHA approval take? Many close in 30–45 days with quick responses. Ask about your timeline.
15. What DTI is allowed? Often up to 43%; higher possible with strong factors. See examples.
16. Do I need an appraisal? Yes—home must be safe, sound, and secure. Get our appraisal checklist.
17. Can I use FHA for an investment property? You must live in the home. See options for investors.
18. Are there prepayment penalties? No—FHA Loans have no prepayment penalty. Learn payoff tips.
19. Can I combine DPA with FHA? Often yes, if the program is approved. We’ll check programs for you.
20. How does FHA treat student loans? Uses actual payment if > $0; otherwise generally 0.5% of balance. Share docs for review.
21. Can I have more than one FHA Loan? Usually no, unless you meet specific exceptions. Ask about exceptions.
22. What condition must the home be in? Safe, sound, secure—basic livability. Prep with our tips.
23. Can I get FHA after bankruptcy? Yes—after set waiting periods and re-established credit. Discuss your timeline.
24. Can I get FHA after foreclosure? Yes—typically after three years with re-established credit. See your path back.
25. What if I have thin or non-traditional credit? We can sometimes use alternative history. Tell us your situation.

How We Build Strong FHA Files

We start with a quick discovery call, review credit, income, assets, and property type, and build a simple checklist. We coordinate with your agent and the seller so timelines stay tight. Start your FHA plan now.

Why Work with J.D. Peck and the JD.Mortgage Team at PRMG

You get a calm, expert guide, clear math, fast communication, and creative structure. We lend in 49 states (excluding New York) and act as a hybrid lender and broker, so we find options, not roadblocks. Meet the JD.Mortgage team.

Before You Go: Explore Other Loan Types

We help with more than FHA. Explore these options so you can compare and choose what fits: VA, FHA, USDA, DPA, Non-QM (DSCR, Bank Statement, ITIN), HELOCs, Second Mortgages, Reverse, Construction, Jumbo, plus the Mortgage Calculator and Mortgage Process. Back to top.