FHA loans with flexible credit and a low down payment
FHA loans help first-time buyers and borrowers who are rebuilding credit buy a home. QMS places your FHA loan with FHA-approved lenders and compares their pricing for you.
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Overview
An FHA loan is a mortgage insured by the Federal Housing Administration, which is part of HUD. That insurance protects the lender, so lenders can accept lower credit scores and a low down payment. FHA loans are for a primary residence you will live in, including properties with one to four units. They can be used to buy a home or to refinance, including a streamline refinance for current FHA borrowers.
Every FHA loan carries mortgage insurance. There is an upfront premium, usually financed into the loan, plus an annual premium paid monthly. On many FHA loans this insurance lasts for the life of the loan, so some borrowers later refinance into a conventional loan once their credit and equity improve. FHA also sets loan limits by county, and gift funds from family can help with the down payment and closing costs.
QMS is a broker, so we place your FHA loan with FHA-approved wholesale lenders and compare their pricing and overlays. Overlays are extra rules some lenders add on top of the FHA minimums. Matching you with a lender that has fewer overlays can make the difference when your credit score or debt ratio is close to a cutoff. All loans are subject to credit approval and lender guidelines.
Is it a good fit?
- Are buying your first home or have not owned one in a while
- Have a lower credit score or are rebuilding after a credit event
- Have limited savings for a down payment and closing costs
- Will live in the home as your primary residence
- Have a family member who can gift funds toward your purchase
- Have a higher debt-to-income ratio than conventional lenders usually accept
What you'll need
- Pay stubs covering the most recent 30 days
- W-2 forms for the past two years
- Federal tax returns for the past two years, if self-employed
- Bank statements for the past two months
- Gift letter and donor bank statement, if using gift funds
- Government-issued photo ID and Social Security number
- Letters explaining recent credit events, if any
How it works
How it works with QMS
Check eligibility
We review your credit, income and the home's county to confirm FHA fits and the loan is within the limit.
Match the lender
We compare FHA-approved lenders on pricing and overlays and choose the one that fits your profile.
Appraise and close
An FHA appraiser checks value and basic property standards, and we manage conditions through closing.
FAQ
FHA loan FAQs
Don't see yours? Call us or send a message. We answer the same business day.
305-425-1990What is the minimum credit score for an FHA loan?
HUD sets the FHA minimums, and lenders often add their own higher cutoffs, called overlays. Because overlays vary, the same score can be declined by one lender and accepted by another. We compare FHA lenders to find ones whose standards fit your credit, and we can suggest steps to improve your score before you apply.
Can I remove FHA mortgage insurance?
It depends on the down payment you made when the loan closed. On many FHA loans, the annual premium lasts for the life of the loan. With a larger down payment, it ends after a set number of years. Many borrowers remove it by refinancing into a conventional loan once they have built enough equity, and we can tell you when that may make sense.
Can I buy a multi-unit property with an FHA loan?
Yes. FHA allows properties with one to four units as long as you live in one of the units as your primary residence. Rental income from the other units may help you qualify, following FHA rules. Three- and four-unit properties must also pass a self-sufficiency test that compares the expected rents with the full housing payment.
How long after bankruptcy or foreclosure can I get an FHA loan?
FHA waiting periods are generally shorter than conventional waiting periods. The time required depends on the type of event, the date it was discharged or completed, and whether there were extenuating circumstances. Credit you have rebuilt since then also matters. Share your dates with us and we will tell you when you are likely to be eligible.
Get started
Know your numbers before you make an offer.
Tell us about your scenario and we'll price it across our lenders the same business day.