How to Get an FHA Loan

How to Apply for an FHA Loan

Follow these steps to apply for an FHA loan.

1. Understand FHA Loan Requirements

FHA loans have some unique requirements it's important to understand before you apply.

• Credit score: The minimum credit score needed for an FHA loan is either 500 or 580, depending on your down payment amount.
• Down payment: The minimum down payment is 3.5% if your credit score is 580 and up or 10% if your credit score is between 500 and 579.
• Debt-to-income ratio (DTI): Your DTI measures how much of your pretax monthly income goes to pay debt. The maximum DTI to be approved for an FHA loan is generally 43%, but you may qualify with a higher DTI in some cases.
• Primary residence: Homes purchased with FHA loans must be primary residences.
• FHA appraisal: The home must meet FHA standards for safety and livability, which are evaluated via an FHA appraisal.
• Loan limits: For 2026, FHA limits loans for a single-family home are $541,287, or $1,249,125 in higher-cost areas of the country.
• Mortgage insurance: FHA loans require mortgage insurance, paid in two parts. Unless you make a down payment of 10% or more, you'll pay mortgage insurance for the life of the loan (or until you refinance).The two parts are:
• An upfront mortgage insurance premium (UFMIP) equivalent to 1.75% of the loan amount is due at closing and can be rolled into your loan.
• An annual mortgage insurance premium equal to 0.45% to 1.05% of the loan amount is added to your mortgage payments.

Some lenders have additional conditions for FHA loans. Check with each lender to understand their requirements.

Learn more: Debt-to-Income Ratio Calculator

2. Check Your Eligibility

In addition to the requirements above, you'll need to have the following:

• A valid Social Security number: Lenders use your Social Security number to help confirm your identity.
• Verifiable income and employment: Lenders verify your income with pay stubs and tax returns. They may also want proof of assets, such as statements for your savings account or investment accounts.
• No recent foreclosures: You can't get an FHA loan if you've had a foreclosure within the past three years.

Tip: You may be able to qualify for an FHA loan with a bankruptcy on your credit report if it was discharged at least two years before you apply.

Still not sure you qualify for an FHA loan? Contact a housing counseling agency approved by the Department of Housing and Urban Development (HUD) for help.

Learn more: How to Build Credit to Buy a House

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3. Find FHA-Approved Lenders

FHA loans are issued through approved mortgage lenders, including credit unions, banks and direct lenders. Lenders can set their own interest rates; some offer better terms than others.

Use the HUD lender directory to find FHA-approved lenders and get their eligibility criteria.

Lender websites typically provide general guidelines for FHA eligibility. You can also contact lenders directly to ask about minimum credit scores, DTI requirements, typical fees and timelines before moving forward with an application. Comparing several lenders can help you find lower interest rates and fees or more flexible qualification requirements.

Learn more: How to Shop for a Mortgage

4. Gather Your Documents

Many borrowers choose to get preapproved for a mortgage before submitting a full application. Preapproval provides an estimate of the loan amount, terms and interest rates a lender is likely to offer you.

Generally, you'll need the following information and documents to apply for mortgage preapproval:

• Pay stubs from the past eight weeks
• Tax returns from the past two years
• W-2 or 1099 forms
• Proof of assets (checking and savings accounts, investment accounts, retirement accounts)
• Personal identification (Social Security number, passport, driver's license or state ID card)
• Employment history
• List of outstanding debts (loans, credit card balances)
• A gift letter (if any part of your down payment is gifted to you)

Learn more: What Documents Are Needed for a Mortgage Preapproval?

5. Submit an Application for Mortgage Preapproval

Apply for preapproval with more than one lender to see which offers the best loan terms. Lenders will verify your income and assets and perform a hard inquiry into your credit, which can cause a small, temporary dip in your credit score.

Minimize negative impacts to your credit by applying for all your preapprovals within 14 to 45 days. Credit scoring models typically treat multiple hard inquiries within this time frame as one inquiry.

6. Review Your Offers and Choose Your Loan

Preapproval letters from lenders will state the loan type, amount and interest rate the lender is prepared to offer based on the information you submitted. They may also include estimates of your monthly payment, fees and closing costs. Once you've received several preapproval letters, you can compare the details of the offers.

Preapprovals are usually valid for 60 to 90 days. Depending on the lender, interest rates and other terms may be locked in for that period or subject to change.

Be aware: Mortgage preapproval isn't a guarantee of approval. When your offer on a home is accepted, you'll generally need to submit a full application with the most current information (such as your latest bank statements). If your financial situation has changed, your loan terms may too.

Learn more: What Is a Preapproval Letter?

How Long Does It Take to Get an FHA Loan?

Once your offer on a home is accepted, closing on a mortgage loan typically takes about 30 to 60 days. The exact time can vary depending on your lender and other factors. FHA loans may take a little longer due to requirements such as a more intensive home appraisal.

Here's a typical timeline of what you can expect after you submit your full application for an FHA loan:

• Loan processing and underwriting: One to three weeks
• Home appraisal: One to two weeks
• Title search and insurance: One to two weeks
• Final walk-through and closing: One to two days

Incomplete paperwork, title issues, appraisal problems or changes to your employment, income or DTI ratio can all delay closing on your loan, while getting preapproved may speed up the process a bit.

Learn more: Mistakes to Avoid When Closing on a Mortgage

Should I Get an FHA Loan?

Whether an FHA loan is right for you depends on your credit score, down payment, the cost of the loan and other factors.

When to Consider an FHA Loan

An FHA loan could be a good fit for you if:

• You're a first-time homebuyer. FHA loans have lower credit score and down payment requirements, which could be ideal for first-time homebuyers with short credit histories and little cash.
• You don't have a big down payment. Depending on your credit score, down payments for FHA loans can be as low as 3.5%. Unlike conventional mortgages, FHA loans allow gifts from employers, friends, charitable organizations or government entities to be used for down payments, giving you greater flexibility in putting together your down payment.
• Your credit score needs work. While conventional mortgages usually require a credit score of 620 or more, FHA loans are open to borrowers with credit scores as low as 500. You may even be able to get an FHA loan after a bankruptcy or foreclosure.
• You're OK with a lower loan limit. For 2026, FHA limits loans for single-family homes are $541,287 in most parts of the country. In comparison, conforming conventional loans let you borrow up to $832,750. (Both types of loans let you borrow up to $1,249,125 in the highest-cost regions of the U.S.)
• You're purchasing a primary residence. FHA loans cannot be used for investment properties or vacation homes.
• You can't qualify for other low-down-payment programs. If your income is too high to qualify for conventional low-down-payment programs like Fannie Mae HomeReady or Freddie Mac Home Possible, an FHA loan could be the solution.

Learn more: Is an FHA Loan Worth It if You Have Good Credit?

When to Avoid an FHA Loan

An FHA loan may not be the best idea in the following situations:

• You have a solid credit score. If you have good or excellent credit, a conventional loan is likely to offer lower interest rates than an FHA loan.
• You want to avoid long-term mortgage insurance. Depending on your down payment, FHA loans may require mortgage insurance for the life of the loan, adding to your total costs.
• You have a large down payment. If you can put down at least 10% to 15% and have good credit, a conventional loan is generally less expensive than an FHA loan.
• You need to borrow more than FHA loan limits allow. If the FHA's loan limits won't stretch to cover the home you want, a conventional mortgage is a better fit.
• You're buying a vacation home or investment property. FHA loans are only available if you're buying a primary residence.

Learn more: FHA vs. Conventional Loans: What's the Difference?

Frequently Asked Questions

The Bottom Line

An FHA loan can make homeownership more accessible if your credit is poor or your down payment is small, but it may not be right for every homebuyer. Be sure to compare lenders, loan terms and total costs before you apply.

Checking your credit report and credit scores at least three months before applying for an FHA loan (or any mortgage) can help prevent surprises. Since mortgage lenders often use credit reports from all three consumer credit bureaus (Experian, TransUnion and Equifax), it's a good idea to get a copy of your credit report from each bureau. You can do this for free at AnnualCreditReport.com. You can also get your credit scores for free from Experian and see what actions may help improve your credit.