Wondering if you qualify for an FHA loan? From credit scores to down payment assistance, we're here to help you understand your options and take the next step.
Ask Bo-24/7 Mortgage AssistantCalculate My Buying PowerHelpful tools and guidance from First Equity Home Loan.
Explore an estimated Alabama home-price range, monthly payment and possible down payment assistance options.
Two illustrative total-debt-ratio scenarios (43% and 50%). Neither represents an FHA approval threshold or an AUS decision.
These figures estimate payment affordability, not eligibility. Actual allowable debt ratios and loan approval require complete application information, applicable automated underwriting findings and lender underwriting review. Eligible compensating factors may affect an underwriting decision but cannot be evaluated by this calculator.
FHA county loan limits, program restrictions, mortgage insurance details, property-specific expenses, closing costs, available funds and any repayable assistance obligation may change these estimates.
For education only; not an offer, approval, commitment to lend or personalized rate quote. Assumes a 30-year fixed-rate FHA loan, 1.75% financed upfront MIP and an illustrative 0.55% annual MIP. Actual MIP varies by loan amount, term and loan-to-value. County loan limits and DPA eligibility are not verified by this tool. Funds shown are down payment only; closing costs are additional.
Buying a home may require less cash than you think. Seller contributions, eligible gift funds, and down payment assistance can help qualified buyers.
Your purchase contract may negotiate for the seller to pay eligible closing costs and prepaid expenses. FHA generally permits seller contributions up to 6% of the sales price, subject to program rules. Seller contributions cannot replace your required minimum down payment.
Eligible buyers may qualify for assistance toward their down payment and certain closing expenses. Programs vary, and assistance may be repayable, forgivable, or subject to additional requirements.
FHA permits qualifying gift funds from eligible sources when properly documented. This may help reduce the amount of personal savings needed.
Adjust the example below to explore how a negotiated seller credit might reduce your estimated cash needed.
Educational illustration only. Assumes a 3.5% FHA down payment and that entered closing costs are eligible for seller payment. Actual eligibility, seller credits, assistance, earnest money, required reserves, lender credits, and cash to close vary. FHA down payment requirements depend on credit and underwriting. Assistance is not guaranteed. Seller credits cannot be used for the required minimum investment. This is not a loan approval or commitment to lend.
FHA loans can make homeownership more accessible with low down payment options, flexible qualifying guidelines, and potential assistance programs.
Eligible borrowers with credit scores of 580 or higher may qualify for an FHA loan with as little as 3.5% down.
FHA financing may offer options for borrowers with less-than-perfect credit. Eligibility depends on credit history, underwriting, and lender requirements.
FHA loans are not limited to first-time homebuyers. Repeat buyers may qualify when they meet FHA occupancy and other rules.
Eligible borrowers may have access to assistance programs that help with down payment and certain closing expenses. Availability and terms vary.
This information is educational and does not constitute a loan approval, rate quote, or commitment to lend. FHA eligibility, assistance availability, loan limits, and underwriting requirements are subject to applicable guidelines and lender review.
Explore Your FHA Prequalification OptionsStraight answers to common questions about FHA financing, down payments, credit, closing costs, and homeownership.
Possibly. FHA financing generally requires a minimum down payment, but eligible gift funds and certain down payment assistance programs may help cover some or all of that requirement.
Seller contributions may also help with eligible closing costs. Actual cash needed depends on program rules, transaction expenses, and underwriting. Assistance is not guaranteed.
Yes. FHA generally permits negotiated seller contributions toward eligible closing costs and prepaid expenses, subject to a limit of 6% of the sales price and applicable FHA rules.
The seller cannot simply pay your required FHA minimum down payment. Any contribution should be addressed in the purchase contract and reviewed with your lender and real estate professional.
No. FHA loans are available to eligible first-time and repeat homebuyers. FHA purchase loans generally require the home to be used as a principal residence, and other eligibility rules apply.
Under FHA's general requirements, qualifying scores of 580 or higher may permit a 3.5% minimum down payment. Scores from 500 through 579 generally require at least 10% down.
Actual approval depends on credit history, underwriting, lender requirements, and the loan program being considered.
FHA financing may be possible after certain credit events, including bankruptcy or foreclosure, when applicable waiting periods, credit-rebuilding requirements, and underwriting guidelines are met.
First Equity can review your circumstances and discuss available financing options.
There is no single income amount that qualifies everyone. Your income, monthly debts, estimated housing expenses, credit history, and underwriting findings all matter.
Our FHA Buying Power Calculator provides an educational estimate, not an underwriting decision or guaranteed approval.
FHA loans are government-insured and may offer flexible qualifying options. Conventional loans follow different underwriting and mortgage insurance requirements.
Some conventional programs also offer low down payments. The better choice depends on your credit, available funds, income, property, mortgage insurance, and overall financing costs.
Yes, when the borrower, property, FHA loan, and assistance program meet applicable requirements. Assistance may be repayable or forgivable and may have additional conditions.
First Equity can evaluate available assistance options and explain how they affect your financing and estimated cash needed.
FHA purchase financing may be available for eligible one- to four-unit residential properties when applicable occupancy, property, loan-limit, and underwriting requirements are satisfied.
Additional requirements can apply to properties with multiple units.
Start with our buying-power calculator, then complete our home-purchase prequalification form or ask Bo a question. Our team can review your situation and discuss potential next steps.
First Equity Home Loan is here to help you understand your home financing options.
Educational information only. Program eligibility, mortgage insurance, assistance availability, and underwriting requirements vary. This information is not a loan approval or commitment to lend.
First Equity Home Loan
You've explored your buying power, learned about FHA financing, and discovered ways to potentially reduce your cash needed at closing. Now let First Equity help you explore the next step.
Tell us a little about your homebuying plans. Our team can review your situation and help you explore financing options.
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