FHA Loan: Are you looking for a low down payment?


FHA loans are a type of government loan widely used by first-time homebuyers and people with low-to-moderate incomes. FHA loans offer down payments options as low as 3.5%. They also require upfront and annual mortgage insurance premiums.

The Federal Housing Administration (FHA) loan is one of the greatest tools for first time and repeat homebuyers. With a minimum down payment of 3.5%, great rates, and lenient credit guidelines, the FHA loan has enabled millions of people to buy a home who would not have been able to otherwise.

You could think of FHA as a giant insurance company. It doesn’t actually do the lending. Rather, this government-run agency insures lenders against financial loss in case the borrower defaults on the loan. Due to solid financial backing, lenders can approve many low to moderate income borrowers for 3.5% down mortgages. Without FHA many first time buyers would be locked out of home ownership.

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Reasons to get an FHA loan

Without FHA loans, many would-be homebuyers would not be able to overcome traditional barriers to homeownership like the initial out-of-pocket expense or less-than-perfect credit. If you’d like to start your home ownership journey, apply today.

Small Down Payment

You can put as little as 3.5% down. It doesn’t even have to be your own money – the down payment can be a gift or loan.

Less-than-perfect Credit

FHA underwriting guidelines are more flexible than conventional (non-government) guidelines.

Sensible Underwriting

FHA lenders take what they call “compensating factors” into account when they underwrite loan applications. This can help those who are not perfect on paper but still deserving of a home loan.

Interest Rates Can Be Lower

FHA loans can be less expensive than non-government loans for people with small down payments or credit issues.

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All loans are not created equal, personal loan has become a great option for people to use.

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Whatever your financial goals are, we can find a loan to fit you. Look for loans that fit your timeline, your budget and your goals

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Our relationship will not end after your transaction. Seed’s goal is to be your trusted mortgage advisor for years to come.

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Our advisors will review your financials and get you a verified letter within 24 hours, any day of the week. 

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our consultants will notify you exactly where you are in the process every step of the way. Our focus is you.

FHA loans are open to US citizens, and also for permanent resident aliens and non-permanent resident aliens who provide proof they are eligible to work on the U.S.

No more landlords

Minimum FHA loan credit score of 580. This is for a mortgage with a 3.5 percent down payment. Ten percent down is required for applicants with scores between 500 and 579.

Making a home your style

3.5 percent down payment from an acceptable source. Your down payment can come from savings, a loan or a gift, but not from anyone who would directly benefit from the transaction, such as the seller, agent or lender.

Weighing the costs of homeownership

Documentation of income. Lenders are required by law to make sure you can afford your mortgage. You’ll have to supply pay stubs, W-2s and possibly tax returns.

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.

 FHA loans are strictly for owner-occupied homes, meaning you will live in the home you will buying. No second homes or rentals are allowed.
FHA loans are strictly for owner-occupied homes, meaning you will live in the home you will buying. No second homes or rentals are allowed.

You can buy a single-family (1-unit) home, as well as a duplex, triplex (3-unit) or four-plex (4-unit) as long as you live in one of the units (see our article on multi-unit properties).

You can also use an FHA loan to buy a manufactured home, condo, or to rehab a homethat is in need of repairs. FHA loans are truly one of the most versatile loans available.

Click here to verify your FHA loan eligibility now.

FHA loans are open to US citizens, and also for permanent resident aliens and non-permanent resident aliens who provide proof they are eligible to work on the U.S.

FHA loans are not limited to first time homebuyers, nor are there maximum income limits or geographic restrictions associated with the program. If you’ve purchased a home before, you may qualify for FHA. But if you currently own a home with an FHA loan on it, you will probably not be allowed to purchase another home with FHA until you’ve sold your previous home.

Those who have defaulted or are delinquent on a Federal debt may not be eligible. However, for most homebuyers, FHA is a great tool to gain access to homeownership.

Check today’s FHA rates here.


  • FHA has more lenient credit guidelines. Those with less-than-perfect credit may qualify.
  • FHA loan interest rates are lower than low-down-payment conventional loans.
  • Minimal down payment of only 3.5% of the purchase price. Keeps more cash in your pocket.
  • You can opt for the FHA 203k option if the home is in need of repairs.
  • The seller can pay most if not all your closing costs.
  • Requires less income and assets than other loan types.
  • You can use gift money for the down payment.
  • You may be able to use a co-signer (non-occupant co-borrower).
  • If you choose to refinance in the future, the process is streamlined.


  • FHA Mortgage insurance remains in place for the life of the loan in most cases. You would have to refinance into a conventional loan to cancel mortgage insurance.
  • FHA cannot be used for second homes or investment properties.
  • Typically, you can’t qualify for an FHA loan if your current home is financed with FHA.
  • The property has to be in fairly good condition. Otherwise, an FHA 203k loanmust be used.

The FHA loan is examined by a lender in much the same way as other loan types. You will apply with an FHA approved lender (most lenders are FHA approved) and verbally give the loan representative your personal information, and income and asset amounts. The lender will pull your credit report to make sure you have acceptable credit history.

If you qualify, the lender will issue a pre-approval and you can start looking for a home within the price range approved. You will submit documentation such as paystubs, W2s, two years of tax returns, and bank statements.  If all goes well, you will receive a final approval, sign loan paperwork, and you will own your home.

Click here to start your FHA application process.


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