FHA Loans


Less rigorous qualifying standards vs conventional and USDA financing and a low down-payment requirement make FHA loans popular with mortgage borrowers.


An FHA loan is a mortgage insured by the Federal Housing Administration. Borrowers with FHA loans pay for mortgage insurance, which protects the lender from a loss if the borrower defaults on the loan.

Eligibility can be earned by serving in the Army, Navy, Air Force, Marine Corps, Coast Guard, Reserves or National guard.


The FHA makes it relatively easy to qualify for a loan. Again, the government guarantees the loan, so lenders are more willing to approve loans. However, lenders can (and do) set standards that are stricter than FHA requirements. Lenders are going to look at a lot of things but the three key pieces are Credit, Income, and Down Payment assets.

A person can have as low as a 580-mid credit score and meet the minimum down payment requirement. borrowers with low credit scores are more likely to get approved if they apply for an FHA loan. If you’re willing and able to make a larger down payment, your score can potentially be lower still.

Debt to income ratios: to qualify for an FHA loan, you’ll need to have be able to show you have an ability to repay all your debts. In general, you have to be better than 31/43, but in some cases, it’s possible to get approved with Debt to income ratios closer to 55% which means for every dollar you make 55 cents can be spent on the total monthly liabilities you have.

DOWN PAYMENT FHA loans require at least 3.5% for a down payment, if you are under 580 credit score it will require at least 10% for a down payment.

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Contact Us Today: (503) 435-2087 
McMinnville Branch Office | 1015 NW Adams St. Ste 101 McMinnville, OR

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