An FHA Home Loan may get you into a home with a low down payment.

One of the biggest hurdles that first time homebuyers face is saving up for a sizable down payment on a home.

If you’re looking to buy your dream home, but you don’t have enough funds, you aren’t alone. One of the biggest hurdles that most home buyers face is saving up for a sizable down payment, let alone the whole payment on a home. Luckily, there are various loan options you may be able to utilize to kickstart and propel you towards getting the home you so much desire.

However, not every loan option is right for you, especially if you are financially strained with debts or a low credit score. That’s when it may be a good idea to consider a FHA loans, especially if you’re a first-time homebuyer.

What is an FHA Loan?

An FHA loan is a mortgage insured by the Federal Housing Administration. These loans are designed to help Americans—especially first-time homebuyers—achieve homeownership with:

  • Lower down payments (as low as 3.5%)

  • More Flexible credit requirements (scores as low as 580)

  • Competitive interest rates

  • Gift funds allowed for down payment and closing costs

Who should consider an FHA Loan?

FHA loans are perfect if you:

  • Are a first-time homebuyer

  • Have limited savings for a down payment

  • Have a credit score between 580-680

  • Have student loans or other debt

  • Want to keep cash reserves after purchasing

  • Are self-employed or have non-traditional income

FHA Loan Requirements

  • Credit Score: Minimum 580 for 3.5% down payment (500-579 may qualify with 10% down)

  • Down Payment: 3.5% minimum (can come from savings, gifts, or down payment assistance programs)

  • Debt-to-Income Ratio: Generally up to 43%, but higher may be acceptable with compensating factors

Property Requirements:

  • Must be your primary residence

  • Property must meet FHA minimum property standards

  • FHA appraisal required

FHA Mortgage Insurance

FHA loans require two types of mortgage insurance:

  1. Upfront Mortgage Insurance Premium (UFMIP): 1.75% of the loan amount, typically rolled into the loan.

  2. Annual Mortgage Insurance Premium (MIP) 0.45% to 1.05% of the loan amount annually, paid monthly

    Example:

    On a $350,000 home with 3.5% down ($12,250):

    • Loan amount: $337,750

    • UFMIP: $5,911 (added to loan)

    • Monthly MIP: ~$235/month (0.85% annual rate)

Why Choose Marcus for your FHA loan?

  • Expert Guidance - I specialize in helping first-time buyers navigate FHA loans

  • Quick Pre-Approval - Get pre-approved in 24-48 hours

  • Down Payment Assistance - I can help you access California DPA programs to reduce your out-of-pocket costs

  • Clear communication - I'll explain every step and keep you updated throughout the process

  • Local Knowledge - Deep understanding of Fresno's housing market and FHA requirements

Get Started Today!

Get your free FHA loan Consultation today!