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FHA Loans: Own a home with just 3.5% down
FHA loans make home ownership accessible with lower credit requirements, flexible income guidelines, and down payments as low as 3.5%.
FHA loan requirements
Property use: Primary residence only
Credit score: 580 minimum
Down payment: 3.5% minimum
Maximum loan amount: $541,287 - $1,249,125 (varies by county)
Debt-to-income ratio: Up to 57%, varies by situation
If you meet these requirements, Tomo Mortgage makes FHA loans simple and fast, so you can get more home for your money.
40+
licensed states
$0
lender fees
98%
on-time closing
4.8
stars on Bankrate
Why choose an FHA loan?
Lower credit requirements
FHA loans accept credit scores as low as 580, or 500 with 10% down, making homeownership possible even while building credit.
Flexible down payments
Put down as little as 3.5%, similar to conventional loans, but with more flexible credit requirements. On a $400,000 home, that's just $14,000 to get started.
Future buyers can take over your loan and rate
FHA loans are assumable, meaning a future buyer can take over your mortgage (including your interest rate) when you sell. This makes your home more attractive to future buyers.
Your rate quote
Additional loan details
- Monthly payments
- $2,528
- Lender fees
- $0 guaranteed
- Due at closing
- $112,000
- -Cost to buy a lower rate
- $0
- -Closing costs
- $8,000-$12,000
- -Down payment
- $100,000
Your quote is based on a as in with a purchase price of and .
How it works
Get pre-approved in hours
Sync your accounts instantly - no digging through your files. Our team is available 7 days a week to help you move quickly.
FHA appraisal & underwriting
FHA requires a property appraisal to ensure the home meets minimum property standards and is worth the purchase price. We handle the coordination and keep everything moving quickly.
Close on your timeline
FHA appraisals slow down most lenders. Our digital documentation, streamlined underwriting, and experienced team keep the process moving.
FHA vs. other loan types
| Benefit | FHA | Conventional | VA | Jumbo |
|---|---|---|---|---|
| Best for | Lower credit scores | Strong credit buyers | Veterans & service members | High-value properties ($767K+ in most states) |
| Minimum credit score | 580 | 620 | No minimum | 700 |
| Minimum down payment | 3.5% | 3% | 0% | 10-20% |
| Mortgage insurance | Required for the loan life | Removable at 20% equity | N/A | Usually not required |
| Property standards | Strict property requirements | Standard appraisal | VA-specific requirements | Stricter appraisal requirements |
| Loan limits for single-family | $541K (most areas) $1.25M (high-cost areas) | $832,750 (most areas) $1,249,125 (high-cost areas) | $832,750 (most areas) $1,249,125 (high-cost areas) | Above $832,751 (no maximum) |
Your FHA offer can compete with anyone
FHA loans are backed by the Federal Housing Administration, giving sellers confidence your financing will go through. With Tomo Mortgage, you'll compete effectively against conventional buyers.
How to maximize your approval odds
Credit score
FHA accepts credit scores as low as 580 (or 500 with 10% down). Higher scores unlock better rates. Check your credit report for errors and pay down high-interest debt before applying.
Down payment
The minimum is 3.5% with a 580+ credit score, or 10% with a 500-579 score. The more you put down, the lower your monthly payment and mortgage insurance premium (MIP) costs.
Debt-to-income ratio
FHA can accept DTI up to 57% of your gross income, depending on your situation. Keep monthly debt payments manageable and be ready to document stable income for stronger approval odds.
Prepare your documents
Having pay stubs, bank statements, and employment history ready to go means faster pre-approval turnaround time.
Property eligibility
FHA loans are for primary residences only. Single-family homes, FHA-approved condos, and multi-unit properties (up to 4 units) all qualify.
The Tomo Mortgage advantage
$0 lender fees guaranteed
While other lenders charge 1%+ in origination fees, we charge $0. On a $400K loan, that’s $2K - $4K staying in your pocket. You get the savings.
FHA loans don't have to take 45+ days
We close FHA loans +44% faster than the industry average of 45 days.
7-day/week support
Traditional lenders make you call during business hours or make you travel to the bank. Tomo Mortgage is here when you . M-F: 8AM-8PM CT, Sat: 9AM-3PM CT, Sun: 11AM-5PM CT
30-second account verification
Linking your bank account replaces hours of paperwork. What takes other lenders 3-5 business days is instant with Tomo Mortgage.
FHA expertise
We handle FHA appraisals, underwriting, and property requirements efficiently. Our team knows the FHA process inside and out, so you don't have to navigate it alone.
Frequently asked questions
An FHA loan is a mortgage backed by the Federal Housing Administration, designed to help first-time buyers and those with lower credit scores buy a home. You can qualify with a credit score as low as 580 (or 500 with 10% down), making it more accessible than conventional loans that typically require 620+.
MIP (Mortgage Insurance Premium) is required on all FHA loans and protects the lender if you default. Unlike PMI on conventional loans, FHA's MIP comes in two forms: an upfront premium (1.75% of your loan, usually financed) and an annual premium (0.15–0.75%, paid monthly).
On a $400K loan, you'd pay $7,000 upfront (rolled into your balance) and roughly $183/month in annual MIP at a 0.55% rate. Your exact annual rate depends on your down payment, loan amount, and loan term. We'll calculate your specific MIP costs during pre-approval.
It depends on when you took out the loan and how much you put down.
If you put down less than 10%, MIP is required for the life of the loan. The only way to remove it is to refinance into a conventional loan once you have 20% equity.
If you put down 10% or more, MIP can be removed after 11 years.
This is different from conventional loans, where PMI automatically drops off at 20% equity. If you're planning to stay in your home long-term and build equity quickly, refinancing to conventional to remove MIP might save you money down the road.
FHA loans have trade-offs compared to conventional loans.
Mortgage insurance for life: If you put down less than 10%, MIP is required for the entire loan term. On a 30-year loan, that's potentially $50,000–$100,000 in additional costs. With conventional loans, PMI drops off at 20% equity.
Stricter property requirements: FHA appraisals are more rigorous than conventional. The property must meet minimum standards for health and safety. Fixer-uppers or homes needing major repairs may not qualify.
Loan limits: FHA loan limits are lower than conventional in most areas ($541,287 vs $832,750 in standard-cost areas). If you're buying an expensive home, you may need a conventional or jumbo loan instead.
Upfront MIP: The 1.75% upfront premium adds to your loan balance, increasing your monthly payment slightly.
However, for buyers with lower credit scores or limited savings, FHA loans offer access to homeownership that wouldn't be possible with conventional financing. The benefits often outweigh the downsides.
Yes. You can use FHA financing multiple times throughout your life, but only for one property at a time in most cases.
Sell and buy again: If you sell your home and pay off the FHA loan, you can get another FHA loan for your next home with no restrictions.
Move without selling: In limited cases (job relocation, family size changes), you may be able to get a second FHA loan while keeping your first home. This requires special approval and isn't common.
Refinance: You can refinance an existing FHA loan into a new FHA loan (called an FHA Streamline Refinance) to lower your rate or change your terms.
There's no lifetime limit on FHA loans, just one active FHA loan per borrower in most situations.
Glossary of terms
Rate
Your mortgage rate is the percentage you pay to borrow money for your home. Rates change daily based on market conditions and your credit score, down payment, and location. Higher credit scores (700+) and larger down payments (20%+) qualify for lower rates. Once you lock your rate with Tomo Mortgage, it's guaranteed through closing—even if market rates increase.
APR
APR shows the true cost of your loan by including the interest rate plus fees like mortgage insurance, points, and closing costs. When comparing lenders, look for an APR close to the interest rate (within 0.25%). A big gap means high fees. With Tomo Mortgage's $0 lender fees, our APR stays close to our rate.
Closing costs
Closing costs are fees you pay to complete your home purchase, typically 2-5% of your loan amount ($8,000-20,000 on a $400,000 loan). Common costs include appraisal ($500-800), title insurance ($1,000-3,000), and inspection ($300-500). With other lenders, expect $2,000-4,000 in lender fees—Tomo Mortgage charges $0.
Points/credit
Points let you pay more upfront to lower your interest rate. One point = 1% of your loan amount. Credits give you a higher rate in exchange for the lender covering closing costs. Which makes sense depends on how long you'll stay in the home. Your Tomo Mortgage loan advisor will run the math with you.
Mortgage Insurance Premium
MIP is required on all FHA loans and has two parts: upfront MIP (1.75% of loan amount, financed into your loan) and annual MIP (0.15-0.75% of loan amount, paid monthly). Unlike PMI on conventional loans, FHA's MIP typically lasts for the life of the loan if you put down less than 10%. The only way to remove it is to refinance into a conventional loan once you have 20% equity.
FHA loan limits
Maximum you can borrow with FHA financing. For 2026: $541,287 in most areas, up to $1,249,125 in expensive markets. These are lower than conventional limits, so high-price homes may need conventional or jumbo loans.
Debt-to-Income Ratio (DTI)
Your DTI is your total monthly debt payments divided by your gross monthly income. Conventional loans typically require DTI under 50%. Calculate yours: add up all monthly debts (mortgage, car, student loans, credit cards) and divide by pre-tax income. Under 43% is ideal. Over 50%? Pay down debt before applying.