FHA loans are insured by the Federal Housing Administration and let buyers qualify with lower credit scores and higher DTI ratios than conventional.
580 (3.5% down)
3.5%
$524,225 - $1,209,750
56.9% (with compensating factors)
Depends on your credit and down payment. Below 680 credit or under 5% down, FHA usually wins on monthly payment. Above 700 credit with 5%+ down, conventional typically wins on total cost.
Yes. Once you have 20% equity and improved credit, refinancing to conventional drops the mortgage insurance permanently.
Yes, as long as you occupy one of the units. Rental income from the other units can often be used to help you qualify.
A single buyer two years past a medical collection, with a stable job and gift funds from a parent covering most of the down payment.
FHA approved where conventional pricing was punitive at that score, with a written plan to refinance to conventional and drop mortgage insurance once credit passes 700.
A buyer purchasing a two-unit property, living in one side and renting the other to help carry the payment.
Projected rent from the second unit was counted toward qualifying income, which is what made the debt ratio work.
Examples are illustrative composites of typical files, not offers of credit or guarantees of terms. Your actual options depend on your credit, income, property, and current market pricing.