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Overview

An FHA loan is a mortgage offered by private lenders and backed by the Federal Housing Administration (FHA). FHA loans make buying a home more affordable with competitive interest rates, low down payments, and flexible credit terms. It can be easier to qualify for an FHA loan compared to a conventional mortgage.

Use our mortgage affordability calculator to estimate how much you can afford to pay for a home based on your down payment, interest rate, and loan term.

Freedom Mortgage is the #1 FHA Lender in the United States according to Inside Mortgage Finance, 2020.

Competitive rates

Low down payments

Low credit scores

Anyone can qualify!

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Ask us what FHA rate we can offer you!

The FHA mortgage rate we may be able to offer is personal to you. Your interest rate is affected by your credit score, income and finances as well as the current mortgage market environment. Freedom Mortgage may be able to offer you an FHA rate that is higher – or lower – than the rate you see advertised by other lenders.

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Is an FHA loan right for you?

FHA loans make buying a house more affordable for homebuyers across the United States. To learn more about your mortgage choices, see our loan comparison below. Freedom Mortgage offers conventional, VA, and USDA loans as well as FHA loans. Also read our article comparing conventional loans vs FHA loans.

FHA Loans

  • All qualified homebuyers are eligible
  • Can buy primary homes only
  • Down payments required
  • Minimum credit score often 600
  • Mortgage insurance required

Conventional Loans

  • All qualified homebuyers are eligible
  • Can buy primary homes, vacation homes, and more
  • Down payments required
  • Minimum credit score often 620
  • Mortgage insurance required with down payment less than 20%
Learn more

VA Loans

  • Only qualified veterans, active duty military personnel, and surviving spouse are eligible
  • Can buy primary homes only
  • Down payments often not required
  • Minimum credit score often 600
  • Mortgage insurance not required
Learn more

USDA Loans

  • Only qualified rural & some suburban homebuyers are eligible
  • Can buy primary homes only
  • Down payments often not required
  • Minimum credit score often 640
  • Mortgage insurance required
Learn more

Looking for more detail?

Our full loan comparison table can help you decide.

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FHA loan fees and requirements

FHA loans help make it easier to qualify for a mortgage to buy a home. You will need to complete an application and meet the lender’s credit, income, and financial requirements to get your FHA loan approved. You will need to pay closing costs too. Here’s what else you need to know about FHA loan requirements.

Minimum credit score

You can qualify for an FHA loan with a minimum credit score as low as 600 at Freedom Mortgage. Learn more

Down payments

FHA loan down payments can be as low as 3.5% if you have a credit score of 580 or higher. For lower scores, the down payment requirement is 10%.

Loans limits

There are loan limits for FHA loans which vary by county. For 2021 in high-cost areas, the mortgage limit will be $822,375. For low-cost locations it will be $356,362. These limits usually change each year because of market changes in home prices.Learn more

Mortgage insurance premiums

You will need to pay an upfront mortgage insurance premium (UFMIP) of 1.75% of the loan amount at closing or roll this cost into your mortgage. You’ll also pay annual mortgage insurance premiums (MIP) which vary from 0.45% to 1.05% of the loan amount based on your down payment, loan term, and mortgage amount.Learn more

Closing costs

HUD says closing costs for FHA loans average between 3% and 4% of the price of the home. These costs can include lender fees, points, title insurance, inspection fees, property taxes, and homeowners insurance premiums as well as the Upfront Mortgage Insurance Premium.

Loan disclosures and closing

Once you submit your application, you will need to review and sign loan disclosures. You’ll also need to attend the closing of your new mortgage.Learn more

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The Freedom Mortgage Difference

Freedom Mortgage has grown to be the 6th largest mortgage lender in the US. With 30 years of experience helping customers achieve and maintain the dream of homeownership, we are proud today to be the nation’s #1 VA and FHA lender.

Beyond originating loans, we also service mortgages for 1.25+ million customers. Our outstanding service includes our Eagle Eye Pledge, to alert customers to opportunities for lower rates and monthly payments. We are dedicated to meeting our customer’s needs for the life of their loan.