FHA home loans · Flexible credit guidelines

A home of your own, with credit that’s still growing.

FHA loans are insured by the Federal Housing Administration and built for buyers with smaller savings or credit that’s still being built. Gifts from family can help with the down payment, and the guidelines look at your whole story.

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Find out where your credit fits with FHA, and what to work on if it isn’t there yet.

A couple sitting together on the front steps of their brick home

What to know.

The essentials, in plain English.

Credit that’s still growing is welcome: FHA guidelines can accept lower scores and past credit events that a conventional loan may not, so a setback doesn’t have to end the conversation.
Buy with less saved: FHA’s down payment minimums are lower than many conventional loans ask for, so a smaller savings account can still get you started.
Help from family counts: Gifts from family, an employer or an approved assistance program can go toward your down payment and closing costs, within FHA’s rules.
FHA’s rules, explained up front: FHA has its own mortgage insurance, property standards and loan limits. Your loan officer explains each one and compares FHA with conventional, so nothing surprises you.

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What happens after you press the button.

Your loan officer reaches out: Ryan reads what you send personally and gets in touch to talk it through.
What you’ll talk about: Your goals, your income, what you’ve saved and your credit history, including anything you’d like explained.
What to have handy: A rough idea of your income and savings, and whether family plans to help. Documents come later.

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Who it fits
Buyers who want a path to a home without perfect credit or large savings.
- First-time buyers
- Repeat buyers purchasing a home to live in
- Buyers rebuilding credit after a setback
- Buyers using gift money or down payment assistance
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What you’ll need
Your loan officer confirms the list for your situation.
- Recent pay stubs, W-2s and tax returns
- Bank statements, plus a gift letter if family is helping
- A photo ID and your Social Security number
- A short explanation of any past credit events, such as a bankruptcy
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FHA or Conventional?

	FHA	Conventional
Backed by	The Federal Housing Administration	No government agency
Credit	More flexible with credit	Rewards stronger credit
Mortgage insurance	Upfront and annual premiums, for a period set by the loan	Can be removed once you have enough equity
Homes	The home you live in	Your home, a second home or a rental

Common questions

Can I use an FHA loan more than once?

Yes. FHA loans are not only for first-time buyers, though you can usually have one at a time, for the home you live in.

What credit score do I need for an FHA loan?

FHA sets minimums, and each lender adds its own guidelines, so the answer depends on your full picture. Your score also affects how much you’ll need to put down. A conversation with your loan officer tells you where you stand.

Does an FHA loan have mortgage insurance?

Yes. Every FHA loan has an upfront premium, which is usually added to the loan, and an annual premium paid monthly. How long the annual premium lasts depends on your down payment.

Can family help with my down payment?

Yes. Gifts from relatives, an employer or an approved assistance program can count toward your down payment and closing costs. The giver signs a gift letter, and the lender documents where the money came from.

Are there limits on the home I can buy?

FHA loan amounts are capped by county, and the home must meet FHA’s property standards, which the appraisal checks.

Can I get an FHA loan after a bankruptcy or foreclosure?

Often, yes, after a waiting period that depends on the event and your circumstances. Your loan officer can tell you where you stand and what to do in the meantime.

FHA or conventional: which is right for me?

It depends on your credit, your savings and how long you plan to keep the loan. FHA is more flexible with credit, while conventional mortgage insurance can come off once you have enough equity. Compare both, with the full terms of each.

Will checking my options affect my credit?

Answering a few questions doesn’t check your credit. A credit check comes later, only with your permission, and your loan officer can explain how it may affect your score.

What if I don’t qualify?

Your loan officer tells you why and what to work on, such as paying down a balance or letting a credit event age, so you leave with a plan.

What does an FHA loan cost?

Closing costs such as lender fees, an appraisal and title charges, plus FHA’s upfront and annual mortgage insurance. Your Loan Estimate lists every cost before you commit.

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“We are so incredibly grateful we found Ryan! My wife and I were pretty overwhelmed when we first started looking at mortgages. When we were shopping around, we always felt like we were constantly being pushed into boxes or swayed into lending options that just didn't fit us. Meeting Ryan was a total breath of fresh air. From our very first conversation, he didn't treat us like just another file—he took the time to actually listen and understand exactly where we were at in our lives. Because of his incredible knowledge, he helped us get the exact mortgage we needed for our dream home. He educated us, answered every single silly question we had, and turned our anxiety into pure excitement. Ryan is truly incredible at what he does.”

Jonathan Peig2 months ago

“Thank you to Ryan and his team. Our realtor recommended them. We are very happy we decided to work with them. They kept in touch after we decided it wasn't the right time to buy. One year later, we are in our new home. They made the loan process a stress free experience. They put in the time and effort to make sure their clients are able to make informed decisions. I definitely recommend them for your financing needs!”

Amanda Atkinsona year ago

“We were caught in a situation where we needed to close rather quickly and Ryan and his team at Neighborhood Loans really came through. Ryan had great ideas regarding the financing options available. The communication process was markedly better than any of our previous dealings with lenders. The entire team was fabulous to work with-they showed great patience dealing with form submissions, etc. as we are not the most tech savvy couple. Bottom line-one of the finest customer service experiences ever for Lisa and I. We would heartily recommend Ryan and his team to anyone looking for mortgage assistance. Five Stars!”