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Get the Best FHA Rates: 3.5% Down, Flexible Requirements

Shop 100+ lenders to get the best FHA rates.

  • 3.5% down payment
  • Gift funds eligible
  • Co-borrower allowed
  • 10–21 days Closing
  • No impact on credit
  • Takes 1 min
  • No docs needed
fha-loan

$7B+

In Funded Loans

30+

Years in Business

20k+

Happy First Time Buyers

30+

Years in Business

20K+

Happy First Time Buyers

$7B+

In Funded Loans

Is an FHA Loan Right for You?

FHA loans aren't only for first-time home buyers. They can work for repeat buyers too.

An FHA loan may be worth comparing if you:

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Qualified borrowers can purchase with as little as 3.5% down with a 580+ qualifying credit score.

 
Instead of spending several more years saving, you may be able to begin your home search now.

HUD-backed FHA loans can require as little as 3.5% down, and the required investment may come from approved sources such as:

  • your own funds
  • eligible gift funds
  • down payment assistance programs

A quick review can help you understand whether you qualify and how much cash you may still need at closing. No obligation.

FHA guidelines allow more flexibility than many conventional programs.

Your credit score does not have to be spotless to qualify:

  • 580+ can qualify for maximum 96.5% financing
  • 500–579 may qualify with at least 10% down

Income, debts, payment history and the rest of your file are also considered, so a lower score alone does not decide the outcome.

Eligible gift funds and down payment assistance can be used in qualifying FHA transactions.

Your cash to close does not have to come entirely from your own savings:

  • Gift funds from eligible sources, properly documented
  • Down payment assistance programs paired with your FHA loan
  • Seller contributions of up to 6% toward eligible closing costs and prepaid expenses

Higher debt levels or past credit issues don't necessarily mean FHA is off the table.

FHA has room for files that other programs turn away:

  • Higher debt levels, with up to 50% DTI through automated underwriting
  • A non-occupant co-borrower to add qualifying income
  • Manual underwriting when the file requires it
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500+ Five-Star Reasons to Choose Us

Hear directly from the clients behind our 500+ five-star reviews. 30+ yrs of serving first-time home buyers.

FHA Loan Requirements

You don't need to figure out every FHA guideline before getting pre-approved. These are the main factors lenders review.

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  • 3.5% Down Payment

    #

    The minimum FHA down payment is generally 3.5%.

    Your down payment may come from your own funds, eligible gift funds or qualifying assistance programs.

  • Upto 52% DTI

    #

    FHA can provide more DTI flexibility than some mortgage options, but there isn't one number that applies to every borrower.

    Austin Capital Mortgage's current FHA guidelines allow up to 52% DTI, depending on the overall file.

  • Credit Score Starting at 500

    #

    Score of 580 or higher: You can qualify for the lowest down payment option, which is 3.5% of the home's purchase price.

    Score between 500 and 579: You are still eligible for FHA financing, but your minimum down payment increases to 10%.

  • Primary Residence

    #

    Standard FHA purchase financing is designed for your primary residence, rather than a vacation home or traditional investment property.

  • Property Type

    #

    Eligible properties can include: Single-family homes FHA-eligible condos Duplexes, triplexes and fourplexes Certain manufactured homes

Our FHA Loan Process

HOW IT WORKS

Start by viewing FHA options based on your scenario. From there, your loan officer will help you apply, submit your documents, complete underwriting, and close on your home.

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FHA Options for Multi-Unit Homes, Co-Borrowers
and Credit Challenges

Depending on your situation, you may be able to purchase a multi-unit property, apply with a co-borrower who won’t live in the home, or qualify after a past credit challenge.

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Buy a 2–4 Unit Property

FHA financing isn’t limited to single-family homes. Eligible borrowers may be able to:

  • Purchase a duplex, triplex, or fourplex

  • Live in one unit as their primary residence

  • Use qualifying rental income from the other units to help qualify

Apply With a Non-Occupant Co-Borrower

Your co-borrower may not have to live in your home. A non-occupant co-borrower could:

  • Combine their qualifying income with yours
  • Strengthen your overall loan application
  • Help you qualify when your income alone isn’t enough

Qualify After Past Credit Challenges

A past credit issue doesn’t automatically disqualify you from FHA financing.

Depending on the circumstances, FHA guidelines may provide a path forward after:

  • Collections and judgments

  • Chapter 7 and Chapter 13 bankruptcies

  • Foreclosures and short sales
Buy a 2–4 Unit Property

  • ELIGIBLE UNITS: 2–4

  • OCCUPANCY: One unit as primary residence

  • RENTAL INCOME: May be used to qualify

  • BEST FOR: Buyers who want rental income to help them qualify

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Non-Occupant Co-Borrower

  • STRUCTURE: Non-occupant co-borrower added to the loan

  • BENEFIT: Adds qualifying income

  • RESTRICTIONS: Additional LTV limits may apply

  • BEST FOR: Buyers who need extra qualifying income

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Past Credit Challenges

  • ELIGIBLE ISSUES: Collections, judgments, bankruptcies, foreclosures, short sales

  • REQUIREMENTS: Waiting periods & documentation apply

  • BEST FOR: Buyers rebuilding after a credit setback

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FHA vs. Conventional:
Which Costs Less for You?

FEATURE

FHA Loan

Conventional Loan

Minimum Down Payment

As little as 3.5%

As little as 3% on eligible programs

Lower Credit Scores

More flexible

Typically stronger credit preferred

Mortgage Insurance

FHA MIP

PMI when applicable

Primary Residence

Yes

Primary, second home or investment depending on program

Multi-Unit Primary Residence

Eligible 1–4 units

Available under eligible programs

Gift Funds

Allowed

Allowed in eligible scenarios

DPA

May be available

May be available

Best Fit

Lower credit, limited down payment or more flexible qualification needs

Often stronger credit and potentially lower long-term costs

More Options. More Ways to Get to Yes.

A Better FHA Loan Experience

Getting an FHA loan isn't only about meeting FHA's minimum guidelines. The lender reviewing your file matters too.

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Shop 100+ Lenders

You're not limited to one bank's pricing or one set of lending options.

In-House Underwriting

Your file is reviewed by an underwriting team we can work with directly instead of being passed between outside companies.

More Ways to Structure the Loan

From FHA and conventional to down payment assistance and specialty programs, we can compare more than one path before deciding which works best.

Dedicated Loan Officer

You have one person who knows your scenario and stays involved from pre-approval through closing.

Austin Capital Mortgage vs. Other Lenders

A better FHA experience starts with better support, broader options and fewer delays. See how Austin Capital Mortgage compares.

Other lenders/Banks

Other

Lenders shopped

Limited to 1

FHA loans

Yes

Down payment assistance

Limited

In-house underwriting

Often no

Manual underwriting

Varies

Dedicated Loan Officer

Varies

Closing time

Often longer

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Today's FHA Mortgage Rates

See live mortgage options based on your credit profile, down payment, loan amount, property and location.

FHA Loan FAQs

An FHA loan is a mortgage insured by the Federal Housing Administration. Because FHA insures the lender against certain losses, lenders can offer qualifying borrowers lower down payments and more flexible qualification guidelines than some conventional loan programs.

No. You do not need to be a first-time home buyer to use an FHA loan. Repeat buyers can qualify as long as they meet FHA and lender requirements.

Qualified borrowers with a credit score of 580 or higher may be able to put down as little as 3.5%. Scores between 500 and 579 generally require at least 10% down under FHA's maximum financing guidelines.

Potentially. FHA allows lower qualifying credit scores than many conventional programs, but your score isn't the only factor. Income, debts, payment history, available assets and the rest of the loan file also affect approval.

Yes. Eligible gift funds may be used when the source and transfer are properly documented.

Yes. FHA financing can be paired with eligible down payment assistance programs when both the borrower and transaction meet program requirements.

Seller contributions toward qualifying closing costs and prepaid expenses are permitted within FHA limits. Austin Capital Mortgage's current FHA guidelines allow interested-party contributions of up to 6%.

Your down payment is only one part of cash to close. Closing costs, prepaid property taxes, homeowners insurance and other expenses can increase the total, while earnest money, seller credits, gift funds and assistance can reduce it.

Yes. FHA can finance qualifying 2–4 unit primary residences. Eligible rental income may also be considered during qualification when applicable requirements are satisfied.

Yes. FHA loans generally have both an upfront mortgage insurance premium and an annual mortgage insurance premium paid through monthly installments.

Not always. FHA can be more competitive for borrowers who need flexible credit or a low down payment. Conventional may cost less for borrowers with stronger credit or certain long-term goals. The best comparison uses your actual rate, payment, mortgage insurance and cash-to-close, not generic program averages.

FHA does not universally require homebuyer education, though it may be required for certain first-time buyer or down payment assistance programs paired with your FHA loan.

Start Your Pre Approval

Start your pre-approval to view instant live rates and review the right FHA mortgage path with a loan officer.

  • No impact on credit
  • Takes 1 min
  • No docs needed