FHA Loan
A government-insured loan that can make buying or refinancing a home easier if your down payment or credit history is limited.
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What an FHA Loan Is
An FHA loan is insured by the Federal Housing Administration, part of the U.S. Department of Housing and Urban Development. The insurance protects the lender, which is why an FHA loan can accept a smaller down payment and a shorter or less perfect credit history than a conventional loan would.
What You Should Know
Low Down Payment
FHA allows a smaller down payment than most conventional loans require, including on multi-unit properties of two to four units, which can make homeownership more accessible for first-time buyers.
Flexible Credit Review
Designed for borrowers whose credit history would make a conventional loan difficult.
Mortgage Insurance Required
FHA loans carry a mortgage insurance premium, charged upfront and then paid monthly for the life of the loan. Unlike private mortgage insurance on a conventional loan, it generally cannot be cancelled.
County Loan Limits
FHA sets a maximum loan amount that varies by county and is reviewed each year.
Primary Residence
FHA financing is intended for a home you will live in.
Gift Funds Allowed
Gift funds are allowed toward your down payment, subject to program restrictions. A Waypoint lender can confirm acceptable sources and any documentation required.
Who an FHA Loan Suits
FHA is often the right route for a first-time buyer, for anyone refinancing their primary residence, or for anyone whose savings or credit file would not clear a conventional loan today. Eligibility is set by FHA program rules, and a Waypoint lender will confirm where you stand before you apply.
- You plan to live in the home as your primary residence
- The property meets FHA condition and appraisal requirements
- The loan falls within the FHA limit for your county
Common Questions
No. FHA financing is not limited to first-time buyers, although it is often used by them.
FHA charges a mortgage insurance premium: part paid upfront at closing, and part added to your monthly payment for the life of the loan. Unlike conventional PMI, it is not cancelable once you reach a certain amount of equity.
Yes. Waypoint offers the FHA 203(k) rehabilitation loan, which lets you finance the purchase and the repair costs together in a single loan.
Talk it through with someone who lends here.
Local decisions. No obligation.
A short conversation before you apply tells you what you can realistically borrow and what it will cost. Book a time at any Waypoint branch, or start online and we will pick it up from there.
Important Disclosures
Equal Housing Lender. NMLS #404962.