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FHA LOANS · 15+ STATES · SINCE 2003

FHA Loans Across 15+ States: 3.5% Down, 26-Day Close, $0 Broker Fee Since 2003

FHA loans are mortgages insured by the Federal Housing Administration (HUD) requiring 3.5% down with a 580 credit score, or 10% down with a 500-579 score. 2026 FHA loan limits are $524,225 (low-cost counties) to $1,209,750 (high-cost). Private lenders like PierPoint Mortgage originate the loan; the FHA insures against default.

★★★★★ 4.9/5 from 152 Reviews● FHA Approved Broker● $0 Cost to Borrower
Check My FHA Eligibility →Call (231) 737-9911
3.5%Min Down
580Min Credit
26Day Close
100+Lenders
Written by Shannon Swartz · NMLS #112844 · Licensed Mortgage Broker · 20+ Years FHA Experience · Last updated July 16, 2026
FHA CREDIT + INCOME REQUIREMENTS

What Credit Score Do You Actually Need for an FHA Loan in 2026?

FHA loans require a 580 credit score with 3.5% down, or 500-579 with 10% down. Maximum debt-to-income (DTI) is 56.99% with compensating factors. There is no minimum income – qualification is based on DTI. Two years of steady employment history is required. Non-occupant co-borrowers are allowed on family transactions. Bankruptcies must be discharged 2+ years per HUD Handbook 4000.1.

Compensating factors that allow higher DTI include cash reserves of 3+ months PITI after closing, minimal payment shock (housing payment within 5% of current rent), residual income at 20%+ of gross, and demonstrated ability to devote larger portion of income to housing. PierPoint’s wholesale mortgage broker network includes lenders with looser overlays than standard retail FHA.

Who Should Actually Consider an FHA Loan?

If any of these describe your situation, an FHA loan is likely the right call:

You are 580-679 credit and got quoted 8%+ by your bank

The bank prices credit under 680 hard. FHA rates in that credit tier typically run 0.5%-1.0% lower on the wholesale side because the FHA insurance shifts the risk. Shannon shops the wholesale FHA book to find the sharpest quote for your tier.

You had a bankruptcy 2 years ago and were told to wait 4 more

That is old rules. FHA allows Chapter 7 approval after 2 years discharged, Chapter 13 after 12 months of on-time payments plus court approval. Banks often layer their own 4-year overlay on top. Wholesale FHA lenders in PierPoint’s network do not.

You are self-employed and don’t fit the bank’s W-2 cookie cutter

FHA counts self-employment income from 2 years of tax returns, and wholesale lenders vary widely in how they underwrite deductions. Shannon knows which of the 100+ lenders will treat your Schedule C the most favorably.

Your down payment is 100% gift funds from family

FHA allows the entire down payment to be gift funds. Conventional loans cap gift funds at the 3% minimum. If the bank told you the gift is a problem, FHA is your workaround.

Source: HUD Handbook 4000.1, Section II.A.5.d (updated May 2026) – FHA compensating factors allow DTI up to 56.99% when properly documented.
RELATED QUESTIONS PEOPLE ASK

What Do Buyers Ask Next About FHA Loans?

What is the FHA loan limit in my county for 2026?

2026 FHA loan limits range from $524,225 in low-cost counties to $1,209,750 in high-cost areas per HUD Mortgagee Letter 2025-24. Fulton County GA is $524,225. Los Angeles County is $1,209,750.

How much are FHA closing costs in 2026?

FHA closing costs run 2-5% of the loan amount, including 1.75% upfront MIP, lender fees ($1,500-3,000), title insurance, appraisal ($550-700), and prepaid interest. On a $337,750 FHA loan, expect $6,700-16,900 in closing costs before seller concessions.

Can I get an FHA loan if I’ve had a bankruptcy?

Yes. Chapter 7 bankruptcies must be discharged 2 years before FHA qualification. Chapter 13 requires 12 months of on-time payments plus court approval. Foreclosures require a 3-year wait. Judgments must be resolved or on an active payment plan.

Can I refinance an FHA loan to remove PMI?

Yes. FHA MIP is required for the life of the loan (or 11 years if original down payment was 10%+). To remove MIP, refinance into a conventional loan once you reach 80% loan-to-value.

INTERACTIVE – FHA PAYMENT CALCULATOR

What Will Your Real FHA Monthly Payment Actually Be?

Slide the values below to see your real monthly payment update in real-time. Assumes 6.5% rate and Fulton County GA property tax rate. For a custom quote based on your credit and full income picture, call PierPoint at (231) 737-9911.

LIVE CALCULATOR

FHA Payment Calculator

Real-time monthly PITI estimate. No credit pull required. Adjust the sliders to see your payment update instantly.

Your Loan Inputs
$150K$800K
3.5% (FHA min)20% (no MI)
5.0%8.0%
Your Estimated Monthly Payment
TOTAL MONTHLY PITI
$2,775
Principal + Interest + Taxes + Insurance + MIP
P&I$2,134
Property Taxes$304
Home Insurance$140
FHA MIP$216
See My Real Rate →

Actual rate depends on full credit + income + property review. Call (231) 737-9911 for exact numbers.

THE COMPARISON

FHA vs VA vs USDA vs Conventional – Which One Actually Saves You Money?

On a $350,000 home with 720 credit at 6.5% market rate: FHA 3.5% down = $2,775/mo PITI, Conventional 3% = $2,825/mo, VA 0% (eligible veterans) = $2,637/mo, USDA 0% (rural areas) = $2,739/mo, Conventional 20% = $2,194/mo. VA wins every time for eligible borrowers. FHA wins for credit 580-679 or gift-funded down payment. Conventional wins for 720+ credit planning to stay 7+ years since MI drops off automatically at 78% LTV – FHA MIP is for the life of the loan unless refinanced.

ProgramDown PaymentLoan AmountP&IMI/PMITotal PITI
FHA 3.5%$12,250$337,750$2,134$216$2,775
Conventional 3%$10,500$339,500$2,145$255$2,825
VA 0% (eligible)$0$350,000$2,212$0$2,637
USDA 0% (rural)$0$350,000$2,212$102$2,739
Conventional 20%$70,000$280,000$1,769$0$2,194

Source: 6.5% rate assumption per Freddie Mac Primary Mortgage Market Survey (July 2026); MI rates per HUD Handbook 4000.1.

Which Situation Sounds Like Yours?

You are a first-time buyer with credit under 680

Choose FHA. Conventional PMI in this credit tier costs $150-260 more per month than FHA MIP on the same loan. FHA also allows 100% gift funds and looser DTI. There is almost no scenario where conventional wins here.

You plan to stay in the home under 5 years

FHA might still win even with lifetime MIP, because the short hold reduces total MIP paid. Compare year-by-year cost including a refinance point around year 5-7.

You plan to stay 10+ years and want PMI to drop off

Conventional wins if your credit is 720+. PMI drops off automatically at 78% loan-to-value. FHA MIP is for the life of the loan unless you refinance, which costs $4,000-6,000.

You are in the 680-720 credit zone

This is the toss-up zone. The right answer depends on your down payment source, planned tenure, and market spread. Shannon runs both scenarios side-by-side.

FHA Wins When…

  • Credit 580-679 (MIP is 1.5x-2x cheaper than conventional PMI)
  • Down payment is 100% gift funds (conventional caps at 3% minimum)
  • Recent bankruptcy (2+ years discharged is enough)
  • DTI needs to go up to 56.99% with compensating factors
  • Multi-unit purchase (up to 4 units with owner occupancy)

Best for: First-time buyers with credit challenges or gift-funded down payment.

Conventional Wins When…

  • Credit 720+ (PMI cheaper than FHA MIP at high credit)
  • Plan to stay in home 7+ years (PMI drops off automatically at 78% LTV)
  • Higher home price (avoids FHA loan limit caps in some markets)
  • Want to avoid FHA property condition requirements

Best for: Move-up buyers, higher-income first-time buyers with strong credit.

VA Wins Every Time (For Eligible Borrowers)

  • $0 down payment (no cash required at closing)
  • No monthly mortgage insurance (saves $200-400/mo vs FHA or Conv)
  • Rates typically 0.25%-0.5% below conventional
  • Assumable by future buyers (adds resale value)
  • No prepayment penalties

Best for: Active-duty service members, veterans, surviving spouses. Learn about VA loans.

USDA Wins When…

  • Buying in an eligible rural or suburban area (91% of US land)
  • Household income at or below 115% of area median
  • $0 down payment needed
  • Small annual fee vs FHA MIP

Best for: Small-town and exurb buyers. Learn about USDA loans.

Need an FHA Quote Right Now?

Shannon shops your file across 100+ wholesale FHA lenders in one call – no credit pull, no fee, no commitment.

See My Lowest Payment →Call (231) 737-9911NMLS #112844 · No credit pull required
THE 26-DAY PROCESS

How Fast Can PierPoint Actually Close Your FHA Loan?

PierPoint closes FHA loans in 26 days on average versus the 44-day national average per Ellie Mae Origination Insight Report (June 2026).

1
Day 1

Free Consultation

5-min call, no credit pull, discuss goals + eligibility

2
Day 2-3

Rate Shop

100+ wholesale FHA lenders compete for your loan

3
Day 4-7

Application

One credit pull, secure doc upload, formal application

4
Day 8-14

Underwriting

Appraisal, title work, condition clearing

5
Day 15-22

Clear to Close

Final approval, 3-day disclosure waiting period

6
Day 23-26

Closing

Sign, fund, keys in hand

Source: Ellie Mae Origination Insight Report (June 2026) – FHA loans represent 24% of all mortgage originations, average close time 44 days nationally.
SS
ABOUT THE AUTHOR
Shannon Swartz, Owner & President, PierPoint Mortgage LLC

Licensed mortgage broker with 20+ years of hands-on mortgage lending experience. NMLS #112844. Founder and Owner of PierPoint Mortgage LLC. Licensed to originate home loans in 15 states: Alabama, California, Colorado, Connecticut, Florida, Georgia, Louisiana, Maine, Michigan, North Carolina, Oklahoma, Oregon, Pennsylvania, Virginia, and Washington. Direct wholesale-lender relationships with 100+ mortgage lenders including UWM, Rocket Pro TPO, PennyMac TPO, and Loan Depot Wholesale. Personally reviews and manages every loan file from application to closing. 4.9/5 star rating from 152 verified reviews across service areas.

Last updated: July 16, 2026 · Reviewed by PierPoint Mortgage LLC, 3088 Sheffield St. STE B, Muskegon, MI 49441 · Call (231) 737-9911
FAQ

What FHA Questions Don’t Banks Want You to Ask?

Can I use FHA to buy a duplex, triplex, or 4-unit property?

Yes. FHA allows 1-4 unit properties as long as one unit is owner-occupied for at least one year. Rental income from the other units can count toward qualifying income. Loan limits are higher for multi-unit properties – up to $1,209,750 for a 4-unit in high-cost areas per HUD 2026 limits.

How much are FHA mortgage insurance premiums (MIP) in 2026?

FHA MIP has two parts: 1.75% upfront (UFMIP), typically financed into the loan, and 0.15%-0.75% annual MIP based on loan amount, term, and LTV. For most first-time buyers on a $337,750 loan with 3.5% down, annual MIP runs 0.55% = $155/mo per HUD Handbook 4000.1.

Can I get an FHA loan with student loans?

Yes. FHA counts student loan payments as 0.5% of the outstanding balance per month if the actual payment isn’t documented, or the actual payment amount if it is. Income-driven repayment (IDR) payments count as-is. This is more generous than conventional.

What is the down payment gift letter requirement for FHA loans?

The gift donor must sign a letter stating funds are not a loan, prove the source with 2 months of bank statements, and the funds must be deposited in the borrower’s account 60+ days before closing or sourced with a paper trail. FHA allows 100% of the down payment to come from gift funds.

Can I combine an FHA loan with state down payment assistance?

Yes. State DPA programs like state and local down payment assistance programs, CalHFA MyHome, Florida Hometown Heroes, and MSHDA layer on top of FHA first mortgages.On a typical Atlanta FHA file, the assistance contributes $10,000 of the $11,460 minimum FHA down payment.

RELATED SERVICES

What Other Loan Programs Pair With FHA – And When Should You Use Each?

FHA pairs best with assistance programs that can layer on top of the 3.5% down payment, FHA-to-Conventional refinancing once you hit 20% equity to drop MIP, and VA loans if you’re an eligible veteran with better rates. PierPoint shops 100+ wholesale lenders across every major mortgage product – compare FHA against related programs below.

Related Loan Products
VA LoansUSDA LoansConventional LoansJumbo LoansRefinancingReverse MortgagesDSCR Investor LoansBank Statement LoansFix & Flip LoansHard Money LoansNew ConstructionForeign National
FHA Resources & Guides
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YOUR NEXT STEP

Locked in on FHA, or Still Deciding?

Five-minute call with Shannon. No credit pull. You’ll know if FHA is right, what your payment looks like, and which state DPA stacks on top.

Check My FHA Eligibility →Call (231) 737-9911

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