Federal Housing Administration (FHA)
The Federal Housing Administration (FHA) is a government agency that provides mortgage insurance on loans made by FHA-approved lenders. FHA insurance enables more accessible homeownership by allowing lower down payments, reduced credit requirements, and more flexible qualification standards.
FHA Loan Features
- Down payment: As low as 3.5% (with 580+ credit score)
- Credit score: Minimum 580 for maximum financing; 500-579 requires 10% down
- Debt-to-income: Up to 43% (50% with compensating factors)
- Primary residence only: No investment properties or vacation homes
- Loan limits: Vary by county; set annually by HUD
Mortgage Insurance
- Upfront MIP: 1.75% of loan amount (can be financed)
- Annual MIP: 0.45% to 1.05% depending on loan terms
- Duration: Life of loan for most FHA borrowers (less than 10% down)
Property Standards
FHA requires properties to meet minimum standards for safety, security, and structural soundness. Deficiencies must be repaired before closing or addressed through an escrow holdback.
Related Terms
- Closing — Where FHA loan requirements are finalized
- Escrow — FHA escrow requirements
- Evidence of Title — Title insurance for FHA transactions
Barnes Walker Title Services
Barnes Walker Title closes FHA-insured transactions throughout Florida, ensuring compliance with HUD requirements and FHA property standards. Submit a title inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC