FHA Loans

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FHA Home Financing

Flexible Credit, Low Down Payments, and a Team That Guides You Through the Process

Kyle Wright and his team help first-time and repeat buyers use FHA financing to get into a home with as little as 3.5% down.

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FHA Loans for First-Time Homebuyers and Beyond

FHA loans are government-backed mortgages designed to make homeownership more accessible with:

  • Flexible credit guidelines
  • Low down payments
  • Options for buyers who may not qualify for conventional financing

They’re among the most popular choices for first-time homebuyers, but FHA isn’t just for first-timers. Repeat buyers, borrowers with past credit events, and people carrying student loan debt all benefit, too.

FHA loans also pair with most down payment assistance programs, which means your out-of-pocket costs at closing can be significantly lower than most buyers expect.

FHA Home Financing

FHA Loan Requirements

Every buyer’s situation is different, but here’s what you need to know about qualifying and paying for an FHA loan.

A score of 580 or higher qualifies you for the 3.5% down payment option. Scores below 580 may still qualify with a larger down payment.

FHA tends to be more generous on debt-to-income ratios than conventional lending, making it a strong option if you’re carrying student loan debt or other recurring obligations.

Bankruptcy requires 24 months of seasoning. Short sales and foreclosures require 36 months, a shorter timeline than most conventional programs.

FHA loans require a down payment of 3.5%. Your entire down payment can come from gift funds, and FHA pairs with most down payment assistance programs to further reduce your out-of-pocket costs.

FHA requires an upfront premium of 1.75% of the loan amount, which can be rolled into the loan, plus an ongoing monthly premium of roughly 0.55% of the loan amount.

Sellers can contribute up to 6% of the purchase price toward closing costs and rate buydowns.

Maximum loan amounts vary by county. Our team can tell you the current limit for your area.

FHA covers one- to four-unit homes, condos, and manufactured or mobile homes. The property must be your primary residence, but a co-borrower does not need to live in the home.

Fixed and adjustable rates are available, with temporary or permanent rate buydown options. There is no prepayment penalty.

FHA vs. Conventional Loans

Both can get you into a home — here’s how they compare.

Down Payment

FHA requires as little as 3.5%. Conventional can go as low as 3% with programs like HomeReady or Home Possible, but typically requires 5% or more.

Seller Concessions

Both allow up to 6% in seller contributions toward closing costs.

Mortgage Insurance

FHA’s monthly premium typically stays for the life of the loan. Conventional PMI drops off once you reach 20% equity.

Loan Limits

FHA has county-based limits. Conventional conforming limits are generally higher.

Credit Requirements

FHA allows scores as low as 580 and takes a more flexible view of credit history. Conventional generally requires 620+ and is less forgiving.

Debt-to-Income Ratio

FHA allows higher DTI ratios, making it a better fit for buyers with student loans or higher monthly obligations.

Which one is right for you?

FHA is often the stronger choice if you need flexible credit guidelines or have limited savings. Conventional may make more sense if your credit is strong and you want to avoid long-term mortgage insurance. Kyle’s team can run both scenarios and show you which one costs less over time.

Refinance Option

FHA Streamline Refinance

If you already have an FHA loan and rates have dropped since you closed, you may be able to lower your monthly payment without going through full underwriting again.

What it is

A refinance option exclusively for existing FHA borrowers that simplifies the process by removing most of the typical qualification steps.

What’s not required

There’s no appraisal, no income verification, and no credit check. This makes the FHA Streamline Refinance one of the fastest and simplest refinance options available.

When it makes sense: If current rates are lower than what you’re paying, or if you want to move from an adjustable rate to a fixed rate, a Streamline Refinance can reduce your monthly cost with minimal paperwork and no out-of-pocket appraisal expense.

FHA Lenders for Manufactured Homes

Manufactured homes open the door to homeownership at a lower price point, and today’s manufactured housing offers features similar to site-built homes. Not every lender finances manufactured properties, but Kyle’s team offers multiple program options.

Loan Types

Conventional, FHA, and VA loans are available for manufactured homes.

Occupancy

Primary residences and second homes may qualify.

Down Payment

Down payment options are available as low as 3% down.

Refinance

Cash-out refinance is available on eligible manufactured properties.

New Construction

Construction financing is available for new manufactured homes.

Guidelines

Specific requirements apply for foundations, roof pitch, garages, and other structural features. These vary by loan program, and Kyle’s team can walk you through what applies to your property.

Need to know what fits your property?

Manufactured home financing is possible, but the details matter. Kyle’s team can help you compare options, review property guidelines, and identify the best path forward based on your goals.

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Frequently Asked Questions About FHA Loans

Yes. FHA loans are insured by the Federal Housing Administration, a division of the U.S. Department of Housing and Urban Development (HUD). The government guarantees a portion of the loan, which allows lenders to offer more flexible terms.

You can secure an FHA loan with as little as 3.5% with a credit score of 580 or higher. Your entire down payment can come from gift funds, and FHA loans can be paired with down payment assistance programs to further reduce your out-of-pocket costs.

The amount of an FHA loan you can qualify for depends on your income, debt-to-income ratio, credit profile, and the FHA loan limit for your county. Kyle’s team can give you a clear number through a pre-qualification, typically within one business day.

FHA loans require mortgage insurance, though it’s technically called MIP (mortgage insurance premium) rather than PMI (private mortgage insurance). It includes an upfront premium of 1.75% of the loan amount and a monthly premium that typically stays for the life of the loan.

FHA loans require an appraisal that evaluates the home’s market value and whether it meets minimum property standards for safety and livability. This is not a full home inspection; a separate home inspection is recommended but not required. The appraisal protects you by ensuring the home meets basic standards before closing.

Yes. You can refinance a conventional or other loan into FHA financing if it makes sense for your situation. If you already have an FHA loan, the FHA Streamline Refinance offers an even simpler option.

FHA is often a better fit than a conventional loan for buyers with lower credit scores, limited savings, higher debt-to-income ratios, or past credit events like bankruptcy or foreclosure. Conventional may cost less over time if your credit is strong, since PMI drops off at 20% equity. An experienced FHA mortgage broker like Kyle’s team can compare the two options side by side using your specific numbers.

No. FHA loans are available to both first-time and repeat buyers. There are no restrictions on how many times you can use FHA financing, as long as the property is your primary residence.

Yes, FHA loans are assumable, which means a buyer can take over the seller’s existing FHA loan, including its interest rate and remaining terms, subject to lender approval. This can be an advantage in a rising-rate environment.

FHA requires 24 months of seasoning after a bankruptcy discharge and 36 months after a foreclosure or short sale. These timelines are shorter than most conventional programs, making FHA one of the faster paths back to homeownership after a credit event.

Yes. Sellers can contribute up to 6% of the purchase price toward your closing costs, which can cover fees, prepaid items, and even rate buydowns.

Yes. FHA, VA, and conventional loans are all available for manufactured homes, and many can be paired with down payment assistance programs. There's no first-time buyer restriction on most manufactured-home financing.

Rate-and-term and cash-out refinance options are both available. Specific guidelines apply for foundations and structural features, so Kyle's team will review your property details as part of the process.

As low as 3% down on conventional programs. FHA and VA options may allow even less. Construction financing is also available for new manufactured homes being built on your property.

Not every lender does. Kyle's team at American Pacific Mortgage is experienced with FHA manufactured home financing and can walk you through the specific guidelines for foundations, structural requirements, and eligible property types.