Easier to qualify
FHA Loans
Government-backed financing built for buyers with limited savings or a shorter credit history.
How FHA loans work
FHA loans are insured by the Federal Housing Administration, which means the lender has a backstop and can therefore be more forgiving about credit history and down payment than they would be otherwise. For a buyer whose credit is still recovering, or who has steady income but limited savings, this is often the loan that makes a purchase possible this year rather than in three years.
The headline number is 3.5% down, and gift funds from family are allowed toward it. The credit guidelines are more flexible than conventional financing, and past financial difficulty does not automatically disqualify you.
The tradeoff is mortgage insurance. FHA loans carry both an upfront premium and an annual one, and on most current FHA loans that annual premium remains for the life of the loan rather than dropping off at twenty percent equity. That does not make FHA the wrong choice, it makes it a choice worth comparing carefully against conventional, which is exactly the comparison we run for you.
Common around ConcordKannapolisRock Hill
FAQ
FHA questions
What credit score do I need for an FHA loan?
FHA guidelines are more flexible than conventional financing, and individual lenders set their own overlays on top of them. Because those overlays vary from lender to lender, a broker can shop the same application to a lender whose requirements actually fit you.
Can my down payment be a gift?
Yes. FHA allows the full down payment to come from an eligible gift, typically from family. There is documentation involved, and we will walk you through exactly what is needed.
Does FHA mortgage insurance ever go away?
On most current FHA loans, the annual mortgage insurance premium remains for the life of the loan. Many borrowers eventually refinance into conventional financing once they have built enough equity, which is a strategy worth planning for from the start.
Can I buy a fixer-upper with an FHA loan?
The property must meet FHA minimum property standards, so a home in poor condition can be a problem for standard FHA financing. There are renovation-specific programs designed for exactly this situation, ask and we will talk through whether one fits.
Other programs worth a look
- Conventional Loans Competitive rates, flexible terms and low monthly payments for buyers with good credit and steady income.
- VA Loans Financing for veterans, active-duty service members and eligible surviving spouses.
- USDA Loans Zero-down financing for eligible homes in rural and many suburban areas across the Carolinas.
- Jumbo Loans Financing for homes priced above conforming loan limits, with underwriting handled personally.
- DSCR Loans Investment property financing that qualifies on the rental income the property produces, not on your personal tax returns.
- First-Time Buyer Programs Low down payment loans, grants and flexible approval paths for buyers purchasing their first home.
Let's find out what you qualify for.
Start with a conversation. If it makes sense to go further, we will, and if it does not, you will know that too.