FHA loans, explained

Six things to know, one tap each.

• How an FHA loan worksA lender makes the loan. The Federal Housing Administration insures it, which is why lenders can say yes more often.Ask a lender
• Down payment and creditFHA is known for smaller down payments and room for a credit history still being built.Ask a lender
• Mortgage insurance (MIP)FHA loans carry insurance that you pay for: once at closing and then monthly.Ask a lender
• Loan limitsFHA caps how large a loan can be, and the cap depends on the county.Ask a lender
• The home has to pass tooAn FHA loan looks at the house as well as the buyer: how you will use it and what shape it is in.Ask a lender
• Steps from search to keysPre-approval, a Loan Estimate, an inspection and an appraisal, then closing. In order, in plain words.Ask a lender

Check where you stand

Three taps about the home and how you will use it. The result says what may be worth asking a lender about.

• Might an FHA loan fit?Three taps about the home and how you will use it. The result says what may be worth asking a lender about.

FHA checklist

Plain steps, in order. Tick them off at your own pace.

• Decide that the home will be where you live. FHA loans are for a home you occupy.
• Read your own credit reports and fix any mistakes you find.
• Add up your monthly debts, so you know what a lender will see.
• Ask a lender that makes FHA loans for a pre-approval, and ask for the Loan Estimate in writing.
• Ask how much would be due at closing, and what the monthly mortgage insurance would be.
• Ask what FHA's loan limit is in the county where you are shopping.
• Choose a home and make an offer. Ask your agent how an FHA loan changes the offer.
• Book the inspection. The appraisal is ordered by the lender; the inspection is yours.
• Compare the Loan Estimate to the Closing Disclosure a few days before closing.

Open the checklist page

Slide show

Six slides, one idea each. Swipe on a phone, tap Next and Back, or press the arrow keys.

• Open the slide showSix slides, one idea each. Swipe on a phone, tap Next and Back, or press the arrow keys.

Full details

One page for each topic, with what each one rests on and where to read the official page.

• How an FHA loan worksA regular loan from a regular lender, with a government guarantee behind it.Read
• Down payment and creditThe two things most buyers ask about first.Read
• Mortgage insurance (MIP)The cost that pays for the government's guarantee.Read
• Loan limitsFHA caps the size of a loan. The cap depends on the county.Read
• The home has to pass tooFHA looks at the house, not only at the buyer.Read
• Steps from search to keysThe order most FHA buyers follow.Read

Common questions

Is an FHA loan only for first-time buyers?

No. People who have owned before can use one too, as long as the home will be where they live.

Does FHA lend me the money?

No. A lender does. FHA insures the loan.

Can I use an FHA loan to buy a duplex?

Often yes, if the building has up to four homes and you live in one. Ask a lender about the details.

Does AskResi make loans?

No. AskResi is not a lender. We explain, and a lender answers.