FHA Loans
Government-backed financing built for buyers with limited down payment savings or a credit history that doesn't fit a conventional box — including flexible credit-score guidelines and 100% financing programs.
- Down payments as low as 3.5% with a 580+ FICO score
- FHA guidelines allow scores down to 500 with a larger down payment
- Gift funds and down payment assistance programs allowed toward your down payment
- Seller can contribute up to 6% of the price toward closing costs
- Available on 1–4 unit properties, including buying a duplex and renting the other unit
Ask About FHA
FHA loans exist for exactly the situation most conventional lenders won’t touch: a thin down payment, a credit score still recovering from a rough stretch, or a debt-to-income ratio that doesn’t fit a standard box. Because Entrust underwrites FHA files in-house rather than routing them through a call center, we can tell you quickly what it will actually take to get your file approved — and if it isn’t ready yet, exactly what to fix.
How qualification actually works. Down payment and credit score move together on FHA: a 580+ score opens the standard 3.5% down payment option, while scores between 500 and 579 require 10% down instead. Debt-to-income guidelines are more forgiving than conventional financing — typically up to 43%, sometimes higher with strong compensating factors like cash reserves or a longer credit history. Every FHA purchase also carries mortgage insurance: an upfront premium of 1.75% of the loan amount (financeable into the loan) plus an annual premium collected monthly, which generally stays for the life of the loan unless refinanced away.
What commonly disqualifies a file or slows it down. The property itself can be the issue as often as the borrower — FHA appraisals check for health and safety conditions, not just value, so a failing roof, exposed wiring, or similar issues can require repair before closing. Recent large, unexplained deposits without a paper trail, and debt loads that push DTI past what compensating factors can offset, are the two most common borrower-side issues.
How it compares to conventional financing. Conventional loans can go as low as 3% down for a well-qualified borrower, but typically require a higher credit score and offer less flexibility on DTI and credit history. FHA trades a mandatory, often-permanent mortgage insurance premium for meaningfully more flexibility on score, down payment source (gift funds and down payment assistance are both allowed), and past credit events — which is exactly why it remains the standard entry point for first-time buyers and anyone rebuilding credit after a setback.
Who This Is For
- First-time buyers with limited savings for a down payment
- Buyers rebuilding credit after a past financial setback
- Buyers who want to pair financing with a down payment assistance program
FHA FAQs
What credit score do I need for an FHA loan?
FHA guidelines allow scores as low as 500 with a 10% down payment, and 580+ opens the door to the standard 3.5% down payment option. Entrust underwrites FHA files in-house, so we can usually tell you within a day whether your score and file will qualify, and what it will take if it doesn't yet.
Can I use down payment assistance with an FHA loan?
Yes. FHA loans are commonly paired with local and state down payment assistance programs. We'll walk you through what you may qualify for based on where you're buying.
Is there a minimum credit score with no exceptions?
FHA sets a national floor of 500 with a larger down payment, but individual lenders — Entrust included — weigh the full file, not just the score. Because we underwrite in-house rather than routing files through a call center, we can tell you quickly where your credit profile stands and what it would take to get approved.
How much are FHA closing costs?
Typically 2–5% of the loan amount, and the seller is allowed to contribute up to 6% of the purchase price toward those costs and prepaids — which can bring your out-of-pocket cash to close close to the minimum down payment.
Can I buy a multi-unit property with an FHA loan?
Yes, FHA allows financing on properties with up to 4 units as long as you occupy one of them as your primary residence — a common strategy for buyers who want rental income to help offset the mortgage payment.
Does an FHA loan require mortgage insurance?
Yes — an upfront premium of 1.75% of the loan amount (which can be financed into the loan rather than paid in cash) plus an annual premium built into your monthly payment. Unlike conventional mortgage insurance, FHA's annual premium generally stays for the life of the loan unless you refinance out of it.
What debt-to-income ratio does FHA allow?
Guidelines typically allow up to 43% total debt-to-income, and often higher with compensating factors like strong credit or significant cash reserves — well above what most conventional programs allow.
Does the home have to pass an inspection?
FHA requires an appraisal that also checks for health and safety issues — things like peeling paint, exposed wiring, or a failing roof can require repair before closing, which is stricter than a standard conventional appraisal.
Ready to Talk Through FHA?
Tell us about your situation and we'll tell you honestly what it will take to qualify.
