First-time homebuyer? Don’t have a 20% down payment? An FHA loan could be right for you.
The Federal Housing Administration (FHA) insures loans on single family and multi-family homes with down payments as low as 3.5% to 10% making them attractive to first-time home buyers. FHA Loans have requirements for minimum credit scores, down payments, and debt-to-income (DTI) ratios as follows:
There are a few additional requirements:
Enter the purchase price of the home you want to buy. You can also enter the amount that you think you will offer.
Enter the amount you have saved for a down payment. For FHA loans this will be at least 3.5%
Enter a realistic interest rate. Base interest rates will vary by lender, your credit score, and your loan term.
FHA loans are typically for 30 years, but you can also select the 15 year term to see what your options are.
Enter your estimated property tax, if you know it. This is the assessed value of the home times the local tax rate.
Enter your estimated home insurance cost, if you know it. This is typically based on home value and location.
Most FHA loans require a down payment under 20%, so you will have to pay PMI, (.5% to 2% of the loan amount.)
If you buy a home in a neighborhood with a homeowners association (HOA), you'll have to pay monthly or annual dues.
If you plan on paying extra on your mortgage each month, enter the amount to apply towards your loan principal.
Use our free mortgage calculator tools to estimate your monthly mortgage payments based on your unique loan scenario. See how your monthly payment changes by making updates to your home price, down payment, interest rate, and loan term.
Wondering what your monthly mortgage payment might be? Plug in your data to get an instant mortgage payment estimate.
Military service can mean eligibility for a no-down payment mortgage. Find out if you qualify for a VA home loan.
Seeking to refinance? Find out how much you can save in interest over the term of your home loan by refinancing now.
Unsure of the conforming loan limits in your area? Find out in seconds by simply entering your zip code.