December 3, 2021

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What Can I Do With An FHA Home Loan?

What Can I Do With An FHA Home Loan?

What can I do with an FHA home loan? This is a question on the minds of many, especially first-time home buyers who are not sure what is possible with an FHA loan and what is not.

Can I Get A No-Money Down FHA Mortgage?

The short answer is no-the FHA does not offer a no money down home loan. However, FHA mortgages do permit a relative, employer, or others not directly involved in the transaction to provide gift funds for the down payment which can reduce the borrower’s out-of-pocket expenses.

The seller of the home cannot contribute to the down payment, but is permitted to contribute up to a certain limit to help cover closing costs.

This is not part of the borrower’s required minimum down payment of 3.5% (or higher depending on circumstances such as low credit scores or other factors) but the borrower is free to use the funds she or he would have paid towards these costs for the down payment.

Can I Get An FHA Home Loan With No Private Mortgage Insurance?

Private mortgage insurance is not required with FHA mortgages. The FHA does have a mortgage insurance premium requirement which is factored into the monthly mortgage payment and will be payable for 11 years or the lifetime of the loan depending on the term of the loan and other factors.

Can I Get An FHA Mortgage For A Condo?

Yes. FHA home loans are available for condo units in FHA-approved condo projects. If a condo project is not on the FHA approved list the borrower can work with the lender to request it be added to that list provided the condo project meets FHA loan standards.

Can I Get An FHA Loan For A Multi-Unit Property?

FHA home loans are available for properties with as many as four units.

Can I Buy A Home With An FHA Mortgage If I Want To Rent To Others?

FHA loan rules do not prevent the borrower from renting unused living units on the property secured by the FHA mortgage but the borrower must be an owner/occupier. FHA mortgages require occupancy by at least one borrower obligated on the mortgage.

Can I Get A Bad Credit FHA Mortgage Loan?

FHA loan FICO score standards start a 580 or higher for borrowers to be eligible for the lowest down payment. Lender standards will also apply so the FHA minimum may not be the only standard at work when you apply. Ask your lender what kind of FICO score ranges qualify for the lowest down payment at that financial institution.

My FICO Scores Are In The 500 Range. Do I Qualify For An FHA Mortgage?

See above as lender standards may not be the same as FHA minimum FICO score requirements, but in general FHA loan rules say that borrowers with FICO scores between 500 and 579 technically qualify for the FHA home loan program but will be required to make a 10 percent down payment.


Bruce Reichstein - FHA News Author

By Bruce Reichstein

August 14, 2018

Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.

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About was launched in 2010 by seasoned mortgage professionals wanting to educate homebuyers about the guidelines for FHA insured mortgage loans. Popular FHA topics include credit requirements, FHA loan limits, mortgage insurance premiums, closing costs and many more. The authors have written thousands of blogs specific to FHA mortgages and the site has substantially increased readership over the years and has become known for its “FHA News and Views”.

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