FHA Loan Requirements: What You Need to Qualify

Last reviewed: October 2026 · By the MortgageCompass Editorial Team · How we research

To get an FHA loan in 2026 you generally need a credit score of at least 580 with a 3.5% down payment, or 500 to 579 with 10% down, a total debt-to-income ratio around 43% or lower, steady income and a home you will live in as your main residence. The loan must also fit within your county’s FHA limit, which starts at $541,287 for a single-family home in 2026. FHA loans are insured by the Federal Housing Administration, part of HUD, which is why they accept lower scores and smaller down payments than most conventional loans.

These are FHA’s own rules. Individual lenders often add stricter requirements, especially on credit scores, so the same application can be accepted by one lender and declined by another.

Check whether you qualify

Illustrative example. A buyer with a 590 score, $7,000 a month of income and $550 of other debts wants a $320,000 home with $11,200 down, exactly 3.5%. At 7% the estimated payment, including mortgage insurance, tax and insurance, is about $2,652, which is 38% of income for housing and 46% including other debts. That is above the standard 43% guideline, so approval would depend on automated underwriting and strengths such as savings or a long, clean credit history, and some lenders may want a 620 score. Paying down a car loan or choosing a slightly cheaper home would make the file much stronger.

Each requirement explained

Credit score

FHA allows scores down to 500, but with less than 580 you need 10% down and few lenders take these loans. Most borrowers need 580 for the 3.5% down payment, and many lenders want 620 or more. Recent late payments, collections and judgments are reviewed even when your score meets the minimum. If your score is low, our guide to mortgage options with bad credit explains how to improve it.

Down payment and closing costs

The 3.5% down payment can come from savings, a gift from family, an employer or a charitable organization, or an approved down payment assistance program, with the right documentation. Sellers can contribute up to 6% of the price toward your closing costs, but not toward the down payment.

Debt-to-income ratio

The standard guideline is 31% of gross income for housing costs and 43% for all monthly debts. FHA’s automated underwriting can approve higher ratios when the rest of the file is strong. Lenders count the full new payment, including mortgage insurance, property tax and homeowners insurance.

Employment and income

Lenders look for two years of steady employment or income, though not necessarily with the same employer. Gaps can be acceptable with a clear explanation, such as time in school or training. Self-employed borrowers usually need two years of tax returns.

Property and appraisal

The home must be appraised by an FHA-approved appraiser and meet HUD’s minimum property standards for safety, security and soundness. Serious problems, such as a damaged roof or unsafe wiring, usually have to be fixed before closing.

Occupancy

FHA loans are for homes you will live in. You generally must move in within 60 days of closing and live there for at least a year. You can buy a two- to four-unit property with FHA if you live in one of the units.

Loan limits

FHA limits depend on your county. For a single-family home in 2026 they range from $541,287 in lower-cost areas to $1,249,125 in the most expensive ones. Search your county with HUD’s FHA mortgage limits tool, linked in the sources below.

Waiting periods after bankruptcy or foreclosure

FHA generally requires two years after a Chapter 7 bankruptcy discharge and three years after a foreclosure. With Chapter 13, you may qualify after 12 months of on-time plan payments with the court’s permission.

What FHA mortgage insurance costs

Every FHA loan has two mortgage insurance premiums. The upfront premium is 1.75% of the base loan and is usually added to the loan. The annual premium is 0.55% of the balance for most 30-year loans and is paid monthly. On a base loan of $308,800, that is about $5,400 added upfront and about $142 a month. With less than 10% down, the annual premium lasts for the life of the loan, so many borrowers later refinance into a conventional loan once they have about 20% equity. Our guide to conventional vs FHA loans shows when each one is cheaper.

Frequently asked questions

Are FHA loans only for first-time buyers?

No. Anyone who meets the requirements and will live in the home can use an FHA loan, although you can usually have only one FHA loan at a time.

Can I use an FHA loan to buy a fixer-upper?

A standard FHA loan requires the home to meet minimum standards at closing. The FHA 203(k) program lets you finance the purchase and certain repairs in one loan.

How long does FHA approval take?

Often about the same as a conventional loan, typically 30 to 45 days from application to closing, though appraisal repairs can add time.

Sources

• HUD: FHA mortgage limits by county
• HUD: Single Family Housing Policy Handbook 4000.1
• CFPB: Buying a House

This guide is for informational purposes only and is not financial advice. FHA rules, premiums and limits can change, and lenders may set stricter requirements. Confirm your eligibility with an FHA-approved lender or a HUD-approved housing counselor.