FHA Home Loans

Achieve the dream of home ownership

Take homeownership from dream to reality with an FHA home loan

Are you a first-time homebuyer exploring home loans? Consider applying for a government-backed FHA home loan. You may qualify, even with credit challenges, and benefit from lower interest and low down payments. Speak to an FHA mortgage loan banker to learn about the advantages of FHA loans and determine if this option is right for you.

Pay less upfront

Qualify for an FHA loan with a down payment as a low as 3.5%.

Choose your terms

Select from a variety of FHA mortgage term options.

Flexible requirements

The FHAD has flexible credit and income requirements.

It's easy to see if you qualify
FHA Loan Benefits

FHA mortgages offer big benefits to first-time homebuyers

Easier to qualify

Government backing means you can qualify even with credit challenges.

Lower down payments

FHA loans don't require as much money down.

Lower closing costs

Avoid higher closing costs with an FHA mortgage.

FHA Loan Application Requirements

Qualify for an FHA mortgage loan

Create an account in our online application platform. Here's what you'll need to apply for a Federal Housing Administration loan.

  • Social Security number
  • Employer contact information
  • Estimated income, assets and liabilities
  • Details on the property you're interested in buying

Financing your FHA mortgage

Begin your FHA home loan journey here.

Step 1

Assess your home loan readiness

Contact an FHA mortgage loan advisor to assess your readiness. Discuss terms, pricing, options and payments. We can help you find a mortgage banker.

Step 2

Apply for an FHA mortgage

Apply for an FHA mortgage loan online. Submit any supporting documentation that will be used to process your FHA loan application.

Step 3

Await loan approval

Underwriting will process your FHA home loan application and review your documentation. Provide answers to questions and additional documentation as requested.

Step 4

Close your FHA mortgage

You'll receive your closing date and meet with your lender and closing attorney to secure your new mortgage.

FAQ

People often ask us

An FHA home loan is a special type of mortgage that's insured by the Federal Housing Administration, or FHA. It's designed to help borrowers purchase a home with a lower down payment or lower credit score than typically required.

Because FHA loans are backed by the government, they provide lenders with a loan guarantee. This makes it more likely that a lender will approve and close your FHA mortgage at a lower interest rate and for less money down. FHA home loans are perfect for first-time homebuyers.

An FHA mortgage is a type of home loan guranteed by the Federal Housing Administration, or FHA. This mortgage program helps first-time homebuyers and those with moderate income get approved for a mortgage. Buyers benefit from lower interest rates, flexible credit requirements and lower down payments.

You may be eligible for an FHA home loan if you meet the following requirements:

  • Have steady work history and income
  • Meet the minimum age requirements for your state
  • Have a credit score above the lender's minimum requirements; the current minimum credit score is 620 for an FHA home loan at First Citizens
  • Are a US citizen

For more information, find a mortgage banker.

First, only FHA-approved lenders can offer this type of loan. Next, if you get an FHA home loan, you'll be required to purchase FHA mortgage insurance. This means you'll pay an upfront cost of 1.75% of the loan amount, as well as monthly mortgage insurance premiums, or MIP. Depending on the terms of your loan, you may be making these payments for 11 years or for the life of the loan.

An FHA loan may be right for you if you:

  • Are a first-time homebuyer
  • Have some credit challenges
  • Have a moderate yet stable income
  • Have a steady work history
  • Need down payment assistance
  • Desire a lower down payment

No. Although FHA home loans are primarily used by first-time homebuyers, it's not a requirement of the program. In fact, you can qualify for this type of loan even if you've gone through a foreclosure, as long as you wait the required amount of time and can demonstrate good credit. The main thing to remember is that you can't purchase a vacation home or rental property with an FHA loan—rather, the house must be your primary residence.

To qualify for an FHA home loan, you'll need a down payment of 3.5% and a credit score of 620 or higher. The FHA gives lenders specific guidelines to determine eligibility, and your lender can help you understand how they apply to you. For example, you'll need to show a steady employment history for the past 2 years to qualify for an FHA home loan.

Take these steps to apply for an FHA home loan.

  1. Find a mortgage banker to assess your homebuying readiness and determine if an FHA loan is right for you.
  2. Apply for the home loan online. Be sure to include any required documentation, such as proof of employment, proof of income and tax documents.
  3. Respond to any requests from underwriting quickly.
  4. Await loan approval.
  5. Close on your FHA mortgage loan.

How soon you can refinance an FHA loan depends on the type of mortgage you desire. Options include streamlined, cash-out , simple and 203(k) refinance.

  • FHA streamlined refinances require you to wait 210 days before you can refinance an FHA mortgage loan. Your mortgage must be current and have been paid on time for the last 6 months.
  • FHA cash-out refinances require you to have owned your home for at least a year, made your payments on time for a year, have a 500 credit score and low debt-to-income ratio.
  • FHA simple refinances require you to have made on-time payments for the last six months.
  • FHA 203(k) refinances require your home to be at least a year old and your payments for the last 6 months to have been made on time.

Yes. FHA home loans are assumable. The homebuyer assuming the loan must meet credit, income, employment and other FHA requirements.

FHA Home Loan Insights

A few homebuying insights to help you

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Account openings and credit are subject to bank approval.

Not applicable in all states.

Terms and restrictions apply. Programs are subject to change without notice and may be discontinued without notice. Consult a tax advisor regarding any tax implications.

Consult your tax advisor regarding the deductibility of interest.

Monthly Mortgage Insurance Premiums (MIP) and Upfront Mortgage Insurance Premiums (UFMIP) apply. Maximum loan amounts vary by county.

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