FHA Loans
Flexible financing with low down payments and credit‑friendly guidelines. Parish Lending navigates FHA options to help you qualify with confidence.
What is an FHA Loan?
FHA loans are mortgages insured by the Federal Housing Administration. The insurance allows lenders to approve buyers with smaller down payments and more flexible credit history than many conventional options.
FHA is popular with first‑time buyers, buyers rebuilding credit, and anyone who prefers lower upfront cash to close.
Advantages
- Lower minimum down payment (3.5%)
- Credit‑friendly underwriting and flexible DTI
- Gift funds and down‑payment assistance programs often allowed
- Assumable loans (the next buyer may assume your loan, subject to guidelines)
FHA Mortgage Insurance (MIP)
FHA loans include two kinds of mortgage insurance:
- Upfront MIP (UFMIP) — typically financed into the loan
- Annual MIP — paid monthly as part of your payment
MIP duration depends on your down payment and loan term. We’ll show your exact cost and how it compares to Conventional options.
FHA vs. Conventional (Quick Compare)
| Feature | FHA | Conventional |
|---|---|---|
| Minimum Down | 3.5% | As low as 3% (primary) |
| Mortgage Insurance | UFMIP + Annual MIP (duration varies) | PMI if <20% down; can be removed |
| Credit Flexibility | More flexible for lower scores | Best pricing with stronger credit |
| Property Standards | Stricter appraisal/condition rules | Standard appraisal; waivers possible |
What Are Today’s FHA Rates?
Rates and MIP are influenced by credit, down payment, occupancy, and loan size. The fastest way to see your numbers is a quick pre‑approval—no obligation.
Basic FHA Requirements
- Credit: flexible; approvals possible with lower scores (subject to guidelines)
- DTI: typically ≤ 50% (varies by scenario)
- Down Payment: 3.5%+; gift funds allowed with documentation
- Property: primary residence only; FHA appraisal & property standards apply
Documents You’ll Need
- Copy of your valid ID (Driver’s License, Passport, Green Card, etc)
- Paystubs covering the most recent 30‑day period with YTD totals
- 2 years W‑2s
- 2 years signed/filed Federal Tax Returns (all pages/schedules)
- 2 months most recent bank statements — all pages.
Upload securely through our full application:
FAQs
Can I use gift funds for the down payment?
Often yes, with a gift letter and documentation. We’ll provide the exact checklist.
Is FHA only for first‑time buyers?
No. FHA is open to repeat buyers as long as the home will be your primary residence.
Can I refinance an FHA loan later?
Yes—FHA Streamline refinancing can reduce rate or MIP with limited documentation if you qualify.
Check Eligibility & Get a Custom Quote
Answer a few quick questions and we’ll confirm FHA eligibility, estimated payment, and next steps.
Ready to see FHA vs. Conventional side‑by‑side?
We’ll show payment, cash‑to‑close, and total cost so you can choose confidently.