Government-Backed

FHA Loans

Q: Can I use an FHA loan for a condo?

Yes, but the condo complex must be on the FHA-approved condo list, or qualify under the single-unit approval process. Not all condos are eligible.

Q: Are FHA loans only for first-time buyers?

No. FHA loans are available to anyone who qualifies and plans to occupy the property as their primary residence. There is no first-time buyer requirement.

Q: What is the FHA Streamline refinance?

If you already have an FHA loan, you may be eligible for a Streamline refinance — simplified underwriting, no appraisal required, and reduced documentation. It's designed to lower your rate with minimal hassle.

Q: How do FHA loans compare to conventional?

FHA loans are generally easier to qualify for but come with mortgage insurance that lasts longer. Conventional loans may offer better terms for borrowers with strong credit and 10%+ down. Compare the two here.

Low down payments, flexible credit guidelines, and government-backed security — designed to make homeownership accessible.

Get Pre-Approved Discuss This Loan

Program Overview

FHA loans are mortgage loans insured by the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD). Because the government insures these loans, participating lenders may offer more flexible qualification guidelines, lower down payments, and competitive interest rates. FHA program guidelines, credit score requirements, DTI limits, gift fund rules, and approval conditions vary by lender, automated underwriting findings, borrower profile, and applicable overlays. Not all lenders participate in all FHA scenarios. Airus Lending is not affiliated with, endorsed by, or acting on behalf of the FHA, HUD, or any government agency.

Who Is This Loan For?

✓ First-time homebuyers who need a low-down-payment option
✓ Borrowers with credit scores as low as 580 (or 500 with 10% down)
✓ Buyers with limited savings who can take advantage of gift funds for down payment
✓ Borrowers who may not qualify for conventional financing
✓ Homeowners looking to refinance via FHA Streamline

Key Benefits

Low Down Payment

As little as 3.5% down with a 580+ credit score — one of the lowest down payment requirements available.

Flexible Credit

More forgiving underwriting guidelines compared to conventional loans. Available to borrowers with past credit events.

Competitive Rates

Government insurance allows participating lenders to offer rates that may be competitive with other loan programs, depending on borrower profile, lender pricing, and market conditions.

Gift Funds Allowed

100% of the down payment can come from a gift — ideal for buyers receiving family assistance.

Qualification at a Glance

Credit580+ (500 with 10% down)

Down PaymentAs low as 3.5%

OccupancyPrimary residence only

Property TypesSingle-family, Condos (FHA-approved), Townhomes, 2–4 unit properties

General Requirements

Credit: FHA permits 3.5% down at 580+ and 10% down at 500–579, subject to lender participation and underwriting findings
FHA traditionally uses benchmark debt ratios around 31/43, but higher ratios may be possible depending on the underwriting path, compensating factors, and lender requirements
Steady employment history (typically 2 years)
Property must meet FHA appraisal standards
Mortgage insurance premium (MIP) required — upfront and annual
Maximum loan amounts set by county (conforming limits)
Important: Airus Lending is a mortgage broker. We match your scenario to lenders that offer FHA financing; lender overlays may vary.

Advantages

✓ As little as 3.5% down payment
✓ Flexible credit score requirements
✓ Competitive interest rates
✓ 100% of down payment can be a gift
✓ Available after credit events (bankruptcy, foreclosure) with waiting periods
✓ Streamline refinance option for existing FHA borrowers

Tradeoffs to Consider

↔ Mortgage insurance premium (MIP) required for the life of the loan (if less than 10% down)
↔ Property must meet FHA minimum property standards
↔ FHA appraisal can be more strict than conventional appraisal
↔ Loan limits may be lower than conventional in some areas
↔ Primary occupancy only — cannot be used for investment properties

Common Scenarios

First-Time Buyer with 5% Saved

A buyer with $15,000 in savings for a $300,000 home. FHA requires only $10,500 down (3.5%), leaving room for closing costs and reserves.

Buyer with 620 Credit Score

A borrower who had a medical collection but has since rebuilt. Some lenders may approve FHA scenarios at 620, subject to automated underwriting findings, lender overlays, documentation, and borrower profile.

Gift-Funded Down Payment

A buyer whose parents are providing the full down payment. FHA allows 100% gift funds — conventional may require the buyer to contribute some of their own money.

Documents Typically Needed

Two most recent pay stubs
Last two years of W-2s
Last two years of tax returns (if self-employed)
Two most recent bank statements
Government-issued photo ID
Social Security number for credit authorization
Gift letter (if using gift funds)
Proof of any additional income sources

How long does the FHA mortgage insurance last?

If you put less than 10% down, MIP lasts for the life of the loan. If you put 10% or more down, MIP drops off after 11 years. Many borrowers eventually refinance into a conventional loan once they reach 20% equity to eliminate mortgage insurance.

Can I use an FHA loan for a condo?

Are FHA loans only for first-time buyers?

What is the FHA Streamline refinance?

How do FHA loans compare to conventional?

Broker Disclosure: Scout Financial Group Inc DBA Airus Lending is a licensed mortgage broker (NMLS #2187418) and does not make loans or credit decisions. Airus Lending works with multiple wholesale lenders to help borrowers compare available loan options. Final approval depends on the lender, automated underwriting findings, documentation, state requirements, and overall borrower profile. Not all applicants will qualify.