Pros
- 3.5% down with a credit score of 580 or higher
- Credit scores from 500 can qualify with 10% down
- Gifts from family can cover the down payment
Cons
- Upfront mortgage insurance of 1.75% of the loan, plus an annual premium
- With less than 10% down, the annual premium lasts for the life of the loan
- The home must meet FHA property standards
Good to know
- For 2026, FHA limits for a one-unit home range from $541,287 in lower-cost areas to $1,249,125 in high-cost areas.
- With 10% or more down, the annual premium ends after 11 years.
- Many borrowers refinance into a conventional loan later to drop mortgage insurance.
Loan rules and limits change. Confirm current terms with lenders. Not financial advice.
Frequently asked questions
Can I get an FHA loan with a 580 credit score?
Yes. A score of 580 or higher qualifies for the 3.5% minimum down payment, though individual lenders can set higher minimums.
Questions from readers
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