How to Apply for an FHA Loan (First-Time Home Buyers)
FHA loans let you buy a home with just 3.5% down. You need a credit score of 580 (500 with 10% down). The trade-off is mortgage insurance. It is 1.75% upfront plus annual premiums. Green cardPermanent Resident Card — The ID card proving lawful permanent resident status — live and work in the US permanently.Click for official info ↗ holders can qualify. Work-visa holders can also qualify. They need valid SSNs and an employment history. It is not just for citizens.
At a glance
- Cost:
- 3.5% down + 1.75% upfront MIP + closing costs
- Total time:
- 2–4 months from application to closing
- Steps:
- 7 steps
- Where to apply:
- hud.gov
Last reviewed October 2026 against official sources. Re-checked annually · next review due October 2027.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official US sources(October 2026).
0 of 7 steps
- Before You Go 20 min
Check the basic requirements
FHA needs a few things. You need 3.5% down with a 580+ credit score. Or you need 10% down with a 500–579 score. Your debt-to-income ratio must generally be under 43–50%, with steady 2-year employment. The home must be your primary residence. Maximum loan limits vary by county. The limit is $541,287 in low-cost areas. It is up to $1,249,125 in high-cost ones for 2026 (one-unit; HUD Mortgagee Letter 2025-23).
Click to mark as done
- Before You Go 1–3 months
Fix your credit profile first
Pull your free reports at annualcreditreport.com. A 580 score qualifies. But every 20 points above that saves real money on the rate. Pay down card balances below 30% of limits. Dispute errors. Avoid new credit applications in the 6 months before you apply.
Click to mark as done
- Go 1–2 weeks
Get pre-approved by an FHA-approved lender
Shop 3+ lenders. Rates and fees vary a lot. A pre-approval is not a pre-qualification. Pre-approval means the lender verified your income and credit. The lender issues a letter that states your maximum loan. Sellers take pre-approved offers seriously. The letter is usually good for 60–90 days.
Click to mark as done
- Fill / Prepare 2–8 weeks
Find a home and sign a purchase contract
Work with a buyer's agent. It is free to you. The seller pays the commission. The contract includes the price and the earnest money deposit. It also includes the inspection window and the financing contingency. FHA appraisals are stricter than conventional ones. The property must meet minimum safety standards. So older homes may need repairs. Those repairs should be negotiated into the contract.
Click to mark as done
- Submit & Pay 30–45 days
Complete the full mortgage application
You submit the full set of documents. This includes W-2s, returns, and statements. The lender orders the FHA appraisal and title work. Underwriting reviews everything. Reply to document requests within 24 hours. Slow replies are the top cause of delayed closings. Lock your rate when you are satisfied.
Click to mark as done
- Wait 3–5 days
Clear to close and closing day
Final underwriting approval gives you the "clear to close." Then schedule the closing. Bring your ID. Bring a cashier's check or wire for the down payment and closing costs. These are typically 2–5% of the loan. Expect to sign a stack of documents. You get the keys the day the loan funds.
Click to mark as done
- Follow Up
Understand the mortgage insurance you carry
FHA loans require upfront MIP. It is 1.75% of the loan. It is usually financed. They also require annual MIP of 0.15–0.75% depending on down payment and term. With less than 10% down, MIP lasts the life of the loan. Plan to refinance to a conventional loan once you reach 20% equity. That lets you drop it.
Click to mark as done
Calculator
FHA Mortgage Payment Calculator
Estimate your monthly FHA payment: principal & interest plus FHA mortgage insurance premium (MIP), with optional taxes and insurance.
Estimated total monthly payment
—
Principal & interest
—
Monthly MIP
—
Taxes + insurance
—
Loan amount
—
Upfront MIP (1.75%)
—
MIP duration
—
Estimate only. Estimate only. Uses current FHA annual MIP rates (0.55% above 95% LTV, 0.50% at or below, for terms over 15 years). Excludes HOA dues and any seller concessions. Your lender quote governs. Source: HUD Mortgagee Letter 2023-05 (FHA MIP rates)
Be Careful
Don't make these mistakes
Applying with too low a credit score. You need a 580 credit score for 3.5 percent down, or 500 to 579 with 10 percent down. Many lenders also add their own minimum of 620 to 640, so ask about their FHA overlay before you apply.
Skipping the credit cleanup. Pay card balances below 30 percent of limits, dispute errors, and avoid new credit applications in the 6 months before you apply. Every 20 points above 580 saves real money on the rate.
Treating a pre-qualification as a pre-approval. A pre-approval means the lender verified your income and credit, and sellers take pre-approved offers seriously. The letter is usually good for 60 to 90 days.
Replying slowly to the lender. Reply to document requests within 24 hours. Slow replies are the top cause of delayed closings, and underwriting reviews everything before the clear to close.
Forgetting MIP lasts the life of the loan. With less than 10 percent down, the annual mortgage insurance premium lasts the life of the loan. Plan to refinance to a conventional loan once you reach 20 percent equity so you can drop it.
FAQ
Frequently Asked Questions
I am a green card holder / on a work visa. Can I get an FHA loan?
Yes. FHA insures loans for lawful permanent residents. It also insures loans for non-permanent residents. They need a valid SSNSocial Security Number — A 9-digit number issued by the Social Security Administration. It is the main US identity number for work, taxes, and credit.Click for official info ↗ and a 2-year US employment history. Their residency must be documented. You can show a green card or EADEmployment Authorization Document — The "work permit" card (Form I-766) that shows you are allowed to work in the US while waiting for a green card.Click for official info ↗/H-1B with proper visa history. Foreign nationals without US residency cannot use FHA.
Can I use gift money for the down payment?
Yes. FHA allows the entire 3.5% down payment to be a gift. It can come from family or close friends. It can come from employers or charities. The giver signs a gift letter. It states that no repayment is expected. You document the transfer. This is one of FHA's biggest advantages over many conventional loans.
What credit score do I really need?
In technical terms, you need 580 for 3.5% down. But many lenders add their own minimum of 620–640. If your score is 580–639, call lenders first. Ask about their FHA overlay before you apply. Hard credit inquiries from multiple mortgage lenders count as one for scoring. This applies if they fall within a 45-day window.
How much is FHA mortgage insurance (MIP)?
FHA loans carry two premiums. The first is an upfront MIP of 1.75% of the base loan. It is usually financed into the loan. The second is an annual MIP. You pay it monthly. It is 0.55% of the loan per year when the loan-to-value ratio is above 95%, or 0.50% at or below 95%, for loan terms over 15 years. The calculator applies these rates on its own.
How long do I pay FHA MIP?
It depends on your down payment. If your loan-to-value ratio is above 90%, you pay MIP for the life of the loan. At 90% or below, you pay it for 11 years. The calculator shows your MIP duration in the results.
What does the FHA mortgage calculator include?
It estimates principal and interest. It estimates monthly MIP. It can also include property taxes and homeowners insurance if you choose. It excludes HOA dues and seller concessions. Your lender's quote governs the final numbers.
Keep Reading