RedHouse › Loan options › FHA loan
FHA loan
A government-insured loan with flexible credit and down payment guidelines. The most common first home loan in our markets.
Who it's for
First-time buyers, buyers with a smaller down payment, and buyers rebuilding credit.
How it works
- The Federal Housing Administration insures the loan, which lets lenders accept a smaller down payment and more flexible credit than many conventional loans.
- You pay a mortgage insurance premium (MIP), part at closing and part monthly, in exchange for that flexibility.
- The home must be your primary residence and pass an FHA appraisal for safety and soundness.
What you'll need
- Steady income and a two-year work history (gaps are fine if explained)
- Your down payment and closing funds, which can come from savings, a gift from family, or a down payment assistance program
- A Social Security number and valid ID
Common questions
Can I use down payment assistance with an FHA loan?
Yes. Most state bond and down payment assistance programs in Montana, Colorado, and North Carolina work with FHA loans. See our down payment assistance pages by state.
Does FHA mortgage insurance ever go away?
On most FHA loans made today, monthly MIP stays for the life of the loan. Many borrowers refinance into a conventional loan once they have enough equity, which removes it.
Can I buy a fixer-upper with FHA?
There is an FHA renovation version (203(k)) that finances the purchase and the repairs together. See our renovation loan page.
I had a bankruptcy. Am I out?
Not necessarily. FHA has waiting periods after a bankruptcy or foreclosure that are shorter than many conventional programs. A loan officer can tell you where you stand.
By design this page shows no rates, APRs, payments, or down-payment percentages. Those figures are only published with the full disclosure block required by Regulation Z.
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