FHA isn't a consolation prize.
For the right buyer it's the smartest move.
Why go with an FHA Loan?
Buyers with credit scores as low as 580, limited savings for a down payment, or a financial setback in their past that conventional lenders won't look past. If you're ready to own but don't fit the conventional mold, this is your loan.
Their credit was good. FHA was still the better call...
First-time buyer. 660 credit score, stable job, $15K saved. Enough for 3.5% down on a $380K home.
We ran FHA and conventional side by side. FHA got them in the home now, with a lower monthly payment than conventional would have required.
Eighteen months later their equity hit 20%. We refinanced into conventional, dropped the mortgage insurance and saved them $140 a month. They've been in their home for two years. The buyers who waited for conventional are still renting.
FAQs
What's the FHA loan limit?
FHA loan limits vary by county and are updated annually. For 2026 the floor is $524,225 in most standard-cost counties, with higher limits in high-cost areas up to $1,209,750. Above your county's limit, conventional or jumbo financing applies. We confirm the exact limit for your specific county before structuring anything.
Does FHA mortgage insurance ever go away?
If you put less than 10% down, FHA mortgage insurance (MIP) lasts the life of the loan — it doesn't cancel at 80% LTV like conventional PMI. The typical solution is to refinance into a conventional loan once you've built 20% equity. If you put 10% or more down, MIP cancels after 11 years.
Can I get an FHA loan after bankruptcy or foreclosure?
Yes. Chapter 7 bankruptcy requires 2 years from discharge. Chapter 13 requires 1 year of on-time payments with court approval. Foreclosure requires 3 years from the deed transfer date. Documented extenuating circumstances may allow shorter timelines in some cases..
What's the upfront MIP?
FHA charges a 1.75% upfront mortgage insurance premium at closing, which can be rolled into the loan. Plus annual MIP of 0.55–0.85% depending on loan term and down payment, paid monthly. We run the full cost comparison vs. conventional so you see exactly what you're paying for the flexibility.
Not sure if FHA is right for you?
Let's figure out what program works best for your situation.
Roxy Miles
NMLS#2464939
Complex income specialist.
Former financial advisor.
865.424.7997
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