FHA Loans With 3.5% Down and a 580+ Credit Score
Buy a home with as little as 3.5% down. Compare FHA options across 100+ lenders and get the strongest offer your file qualifies for.
- Gift Funds and Down Payment Assistance Allowed
- Seller Can Pay Up to 6% of Closing Costs
- 1 Day Pre Approval
30+ years lending · 500+ reviews · Licensed in 26 states
FHA LOAN3.5% down payment30-yr fixed · 580+ credit
Austin Capital Mortgage
Your pre-approval checklist is ready
Your pre-approval checklist is ready
30+Years lending, since 1996
500+Reviews
26States licensed
100+Lenders compared
Is an FHA Loan Right
for You?
FHA gives buyers flexibility on down payment and credit. If one of these sounds like you, we can help.
Not sure? A loan officer can compare FHA with your other options in one call.
Get a Rate QuoteYou're buying your first home with limited savings
Put down as little as 3.5%, about $10,500 on a $300,000 home. Gifts and down payment assistance can cover some or all of it.
We’ll show you which options your file qualifies for. FHA does not require first-time buyer status, so repeat buyers qualify too.
Your credit score is between 580 and 640
FHA sets a 580 minimum for 3.5% down, and each lender adds its own rules on top.
We compare 100+ lenders to find one whose guidelines fit your score. We’ll show you your options before you apply.
Family is helping with your down payment
Gift funds are allowed from eligible donors.
Cash gifts can’t be used, so we’ll walk you and your family through the gift letter and the transfer. Your money gets accepted without delays.
You've had a bankruptcy or foreclosure
You may qualify 2 years after a bankruptcy discharge or 3 years after a foreclosure.
With a Chapter 13, you need 12 on-time plan payments and court approval for a manually underwritten loan. We’ll help you document what happened and show you when you can apply.
You have little or no credit history
No score? Rent, utility and phone payment history can count instead, with at least three credit references and 12 months of records.
We’ll help you gather the records for a manual review.
Parents want to help a student or adult child buy
A family member can join the loan without living in the home on a one-unit purchase.
Their income can help you qualify with 3.5% down. See how one family did it in the case study below.
FHA Loan Requirements
in 2026
Each lender can add its own rules on top of FHA's, so we match your file to a lender that fits.
580+ credit score for 3.5% down
Scores from 500 to 579 can qualify with 10% down, and borrowers with no score can qualify with rent and utility history.
Late payments or collections in your past? We’ll help you explain them and find a lender that fits your file.
3.5% down from savings, gifts or assistance
Your down payment can come from savings, a family gift or down payment assistance. Sellers can pay up to 6% of the price toward your closing costs.
We’ll show you how to document gift funds so they’re accepted the first time.
Debt-to-income ratio up to 50%
FHA’s automated approval looks at your whole profile. Manual approvals start at 31% housing / 43% total and can reach 40% / 50% with savings or other compensating factors.
We’ll run your numbers so you know your budget before you shop.
2 years of steady income and employment
W-2 earners need recent pay stubs and two years of W-2s.
Self-employed or on commission? Plan on two years of tax returns, plus a profit and loss statement when needed.
Primary home, 1 to 4 units, loan limits from $541,287
FHA covers houses, townhomes, FHA-approved condos, manufactured homes on a permanent foundation and 2 to 4 unit homes you live in. You move in within 30 days of closing.
We’ll check your county’s 2026 limit (up to $1,249,125) before you make an offer.
No upfront cash needed for mortgage insurance
The 1.75% upfront premium is usually added to your loan, so you have nothing extra to bring to closing for it.
On a $300,000 home with 3.5% down, that’s about $5,066 upfront and roughly $133 a month (0.55% a year, or 0.75% on loans over $726,200). We’ll show you the full payment before you commit.
Requirements may vary by lender and loan scenario. Meeting the minimums does not guarantee approval.
Verified employment · Stable income2+ years of Employment
Income VerificationPay stubs · W-2 · Tax returns
Get Your Personalized Quote in 2 Minutes
Fill our 2 min form to see live rates from lenders based on your scenario. One application, 100+ lenders.
Get Free Rate Quote
What Homeowners Say About Working With ACM
Your FHA Loan, From Quote to Closing
From approval to closing in 5 easy steps.
01
01
Get Your Free Rate Quote
Fill our 2 min form and get quotes from 100+ lenders. No obligation.
02
02
Get Pre-Approved in One Day
Submit your documents online and get approved in as little as one day.
03
03
Make Your Offer
Shop with a pre-approval letter so sellers know your financing has been reviewed.
04
04
Appraisal and Underwriting
An FHA appraiser confirms the home’s value and our in-house underwriters manually review your file. Your loan officer sends updates every 48 to 72 hours.
05
05
Close and Move In
Sign your closing documents, get your keys and move in within 30 days or less.
How One Family Used FHA to Help Their Son Buy Near Campus
FHA purchase · $350,000
College Station, Texas (Texas A&M)
“We had a lot of questions, and Charlie Cooper at Austin Capital Mortgage answered every single one before we even thought to ask. He laid out the entire process from day one so there were zero surprises.”
The parentsVerified Google reviewSmall down payment, big difference.
$350k
Purchase price, near Texas A&M in College Station.
$12,250
Down payment (3.5%) plus closing costs.
$70,000+
Down payment the family expected for an investment purchase.
FHA vs. Conventional vs.
FHA With Down Payment Assistance
All three can work with a small down payment. We'll help you pick the one that fits your credit, cash and plans.
| Feature | FHA Loan | Conventional Loan | FHA + Down Payment Assistance |
|---|---|---|---|
| Credit score | 580+ for 3.5% down; 500 to 579 with 10% down | No set minimum for Fannie Mae automated approvals; many lenders still require 620+ | 600+ per borrower on ACM’s FHA combo option |
| Minimum down payment | 3.5% | As little as 3% for first-time or income-eligible buyers | A second loan of 3.5% or 5% covers the down payment |
| Mortgage insurance | 1.75% upfront plus 0.50% to 0.75% annual; lasts the life of the loan with under 10% down | Private mortgage insurance with under 20% down; cancelable at 80% loan-to-value and ends automatically at 78% | Same as FHA |
| First-time buyer required? | No | Only for some 3% down options | No |
| Income limits | None | Only on income-based programs | None |
| Often a good fit for | Scores of 580 to 680 or a higher debt-to-income ratio | Stronger credit and plans to drop mortgage insurance later | Limited cash for the down payment |
| FHA vs. conventional guide | Conventional loans | Down payment assistance guide |
Assistance programs, terms and availability vary by state and lender. The assistance program has its own lender requirements.
Talk to a Mortgage Expert About Your FHA Loan
Get answers on your credit, down payment and budget from a licensed loan officer before you apply.
Talk to a Mortgage ExpertWhy Shop Your FHA Loan With ACM
FHA sets the baseline rules, and every lender adds its own. Comparing many lenders changes what you can qualify for and what you pay.
01 Rates
We Find Your Best Rate
Compare FHA rates from 100+ lenders and get the strongest offer your file qualifies for.
02 Documents
A Clear Document List From Day One
You know exactly what underwriting needs and why, so your file is complete when it's submitted and last-minute requests stay rare.
03 Support
A Loan Officer Who Answers
Calls are answered or returned the same business day, texts within 2 to 4 hours, and file updates reach you every 48 to 72 hours.
04 Speed
Close in 10 to 21 Days
We work with your agent to set a closing date that fits your move.
FHA Loans: Your Questions Answered
Get clear answers on FHA requirements, down payments, mortgage insurance and your options.
How does FHA mortgage insurance work, and can I remove it?
FHA charges a 1.75% upfront premium, usually added to your loan, plus an annual premium paid monthly.
With less than 10% down, the annual premium stays for the life of the loan. With 10% or more down, it ends after 11 years. Many borrowers refinance into a conventional loan once they reach about 20% equity.
What is the difference between an FHA loan and FHA with down payment assistance?
FHA with assistance adds a second loan that covers 3.5% or 5% of the price, alongside your FHA first mortgage. ACM’s combo option requires a 600+ credit score and homebuyer education, with no first-time buyer rule and no income limit.
Assistance can be paired with your FHA loan when both you and the transaction meet the program’s requirements. Repayment terms depend on the program.
Can a lender decline me even if I meet FHA's minimums?
Yes. FHA sets the baseline, and each lender can add rules for credit score, debt-to-income ratio or property type.
That is why we compare 100+ lenders. A file that one lender declines can fit another lender’s guidelines.
What are the requirements for an FHA loan?
You need a 580+ credit score for 3.5% down (500 to 579 with 10% down), steady income and a home you will live in as your primary residence.
Your debt-to-income ratio can reach 50% with compensating factors. W-2 earners provide two years of W-2s, and self-employed borrowers provide two years of tax returns.
How much down payment do you need for an FHA loan?
The minimum is 3.5%, about $10,500 on a $300,000 home. Savings, a family gift or down payment assistance can provide it.
Sellers can pay up to 6% of the price toward your closing costs. Those credits can’t cover your down payment.
What credit score do you need for an FHA loan?
FHA allows 580+ for 3.5% down and 500 to 579 with 10% down.
Each lender sets its own minimum, so we compare 100+ lenders to find one that fits your score.
Is an FHA loan better than a conventional loan?
FHA fits scores of 580 to 680 or a higher debt-to-income ratio. Its mortgage insurance lasts the life of the loan with less than 10% down.
Conventional fits stronger credit, and its PMI cancels at 80% loan-to-value. We’ll price both and show you the monthly payment side by side.
Can you get an FHA loan after a bankruptcy or foreclosure?
Yes. You may qualify 2 years after a bankruptcy discharge or 3 years after a foreclosure.
With a Chapter 13, you need 12 on-time plan payments and court approval for a manually underwritten loan.
What are the FHA loan limits for 2026?
For a one-unit home, 2026 limits range from $541,287 in most counties to $1,249,125 in the highest-cost areas. Limits are higher for 2 to 4 unit properties.
Your loan officer confirms the limit for your county.
Can a family member help you qualify for an FHA loan?
Yes. A family member can join your loan as a non-occupant co-borrower on a one-unit purchase.
Their income can help you qualify with 3.5% down.
Next step
Get Your Free FHA Rate Quote
- Compare FHA rates from 100+ lenders
- Takes about 2 minutes
- No obligation
Meet Your FHA Loan Officers
Every ACM borrower works with one licensed loan officer from application to closing.
Jett Middleton
Loan Officer
Jett Middleton
NMLS: 2736777Jett focuses on first-time homebuyers and down payment assistance programs, along with DSCR loans for investors.
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Lance Kotal
Loan Originator
Lance Kotal
NMLS: 308707Lance has been a loan officer in Austin since 2001. A UT Austin economics graduate who helped his father build houses, he brings hands-on knowledge of homes to the financing conversation.
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Clint Brinkoeter
Loan Officer
Clint Brinkoeter
NMLS: 2592637Clint has more than a decade of experience in mortgage origination. A Texas State finance graduate, he's known for his market knowledge and close community ties.
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Adrienne Sanchez
Loan Officer
Adrienne Sanchez
NMLS: 1213046Adrienne entered the mortgage industry in 1994, led operations at a mortgage company and joined ACM in 2009. She brings three decades of lending experience to every file.
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Tom Oltmann
Loan Officer
Tom Oltmann
NMLS: 308768Tom has originated loans at ACM since 2008, after more than a decade managing retail stores for AT&T. He works with first-time buyers and investors and keeps clients informed at each step.
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Charlie Cooper
President
Charlie Cooper
NMLS: 326203Charlie leads Austin Capital Mortgage and brings a long-term view of the lending business to every file. A University of Houston finance graduate, he's known for getting to the right answer quickly.
View ProfileGet Your Free FHA Rate Quote
Compare FHA rates from 100+ lenders in 2 minutes, or talk with a loan officer today.
FHA questions? We’ve got answers.
Clear answers on down payments, credit, mortgage insurance and what to expect before closing.
More questions? See our Mortgage FAQs.
Still have a question?
Speak with a local mortgage expert and get answers tailored to your situation.
What are the FHA loan requirements?
You need a 580+ credit score for 3.5% down (500 to 579 with 10% down), steady income, a debt-to-income ratio within FHA or lender limits, and a home you’ll live in as your primary residence. See the requirements above for each detail.
We’ll check your file and tell you where you stand.
How do I qualify for an FHA loan?
Start with a free rate quote or a call. Your loan officer reviews your credit, income, savings and debts, then matches you to a lender whose guidelines fit your file.
What credit score do I need for an FHA loan?
FHA allows 580+ for 3.5% down and 500 to 579 with 10% down. Each lender sets its own minimum, so we compare lenders to find one that fits your score.
How much down payment do I need for an FHA loan?
The minimum is 3.5% of the purchase price, about $10,500 on a $300,000 home. Savings, gifts and assistance programs can all provide it.
Can I get an FHA loan with no money down?
FHA requires a 3.5% down payment, and that money can come from a family gift or an assistance program. ACM’s FHA combo option uses a second loan for the down payment on qualifying files, with a 600+ credit score and homebuyer education.
We’ll show you which option fits.
Do I have to be a first-time home buyer to get an FHA loan?
No. FHA is open to repeat buyers too. The home must be your primary residence, and you move in within 30 days of closing. FHA can’t be used for investment properties or vacation homes.
Can the seller pay my closing costs on an FHA loan?
Yes. The seller, builder or other interested parties can pay up to 6% of the sales price toward your closing costs and prepaid items.
These credits can’t cover your 3.5% down payment. Credits above 6% reduce the price used to set your maximum loan.
Can I combine an FHA loan with down payment assistance?
Yes. FHA allows assistance from eligible programs, as a gift or an approved second loan. ACM’s combo option pairs a 96.5% FHA first mortgage with a second loan of 3.5% or 5%, with a 600+ credit score, homebuyer education, no first-time buyer rule and no income cap.
Availability varies by state.
What are the 2026 FHA loan limits?
For a one-unit home, 2026 FHA limits range from $541,287 in most counties to $1,249,125 in the highest-cost areas. Limits are higher for 2 to 4 unit properties.
Your loan officer confirms the limit for your county.
What are today's FHA loan rates?
FHA rates change daily and depend on your credit score, down payment, loan amount and lock date. Get a free rate quote to see the rate your file qualifies for, or check today’s live mortgage rates.
Can I get pre-approved for an FHA loan online?
Yes. Start with a free rate quote online, upload your documents securely and work with your loan officer by phone or text. Pre-approval includes a credit check and income verification, so it reflects what you can borrow.
Can non-U.S. citizens get an FHA loan?
U.S. citizens and permanent residents are eligible. Non-permanent residents with an employment authorization card and DACA recipients are no longer eligible for FHA case numbers assigned on or after May 25, 2025.
Do you offer FHA 203(k) renovation loans?
Yes, through our lender network. A 203(k) loan lets you finance a home’s purchase and repairs in one mortgage. The Limited 203(k) covers smaller, non-structural repairs, and the Standard 203(k) covers larger projects, including structural work.
Keep learning about FHA loans.
Guides on down payment assistance, closing costs and the home buying process.
