FHA Loan Requirements: What You Need
October 20, 2026
To get an FHA loan, you'll need to meet HUD's credit, income, down payment and occupancy rules: a credit score that meets FHA's minimum for your down payment (and your lender's own minimum), steady, documented income, a manageable debt-to-income ratio, and a plan to live in the home as your primary residence. The home must meet HUD's minimum property standards, and the loan must fit within your county's FHA loan limit. You'll also pay FHA mortgage insurance.
Borrower requirements. FHA sets a minimum credit score that depends on the size of your down payment, and many lenders set higher minimums of their own, known as overlays, so one lender's no may not be final. Lenders verify income and employment, usually covering two years, and they look for stable or rising income. Gaps can be acceptable with an explanation. Your debt-to-income ratio is reviewed by FHA's automated scorecard or by manual underwriting, which has stricter ratio limits. Your down payment can come from your own funds or from an acceptable gift from a relative, employer or eligible down payment assistance program, documented with a gift letter. FHA also checks CAIVRS, a federal database of delinquent federal debts such as defaulted student loans, and a hit generally has to be resolved before you can close.
Property, occupancy and credit-event rules. You must move in within 60 days of closing and plan to live there for at least a year. FHA loans can finance one-to-four-unit homes, approved condos and some manufactured homes, so you can buy a duplex and live in one unit. An FHA appraisal checks both value and HUD's minimum property standards for safety, security and soundness, and some repairs may be required before closing. After a Chapter 7 bankruptcy, FHA generally requires two years from discharge. With a Chapter 13, you may qualify after one year of on-time plan payments with court approval. After a foreclosure, the general wait is three years. Exceptions can apply for documented extenuating circumstances. Most borrowers can have only one FHA loan at a time, with limited exceptions such as relocation.
Mortgage insurance and what to ask. FHA loans carry an upfront mortgage insurance premium, usually financed into the loan, plus an annual premium paid monthly. How long the annual premium lasts depends on your down payment and loan term, and on many FHA loans it lasts the life of the loan unless you refinance. Ask the lender: What credit score minimum do you use for FHA? Will you underwrite manually if automated approval isn't possible? How do you treat my student loans and other debts? Does my condo need to be FHA-approved? Can the seller contribute toward closing costs? Is FHA only for first-time buyers? No. Any eligible buyer can use it for a primary residence. Can non-U.S. citizens get an FHA loan? Lawful permanent residents and some non-permanent residents with eligible status can, so ask the lender what documents it needs.
FHA loans have flexible credit and income rules, but they require you to live in the home, the property must meet HUD standards, and you'll pay upfront and annual mortgage insurance. Lender overlays vary, so compare more than one lender if you're turned down. Sources: HUD Single Family Housing Policy Handbook 4000.1; HUD FHA loan limits lookup (hud.gov). LoFi Rate is not affiliated with or endorsed by HUD or FHA. General education only. LoFi Rate is an independent matching service, not a lender.