FHA Loans
Available in Georgia, Florida, South Carolina, Alabama, Tennessee
An FHA loan is government-insured and built for buyers with lower credit scores or smaller down payments. The floor is a 500 credit score with 10% down, or 3.5% down at 580 and above. Most lenders set their own higher minimums, which is why so many people are told no.
FHA allows a 500 score, and we actually do it
FHA’s published floor is a 500 credit score with 10% down, and 580 with 3.5% down. Anyone can look that up.
What matters is that most lenders overlay that floor upward to 580, 620, or higher, because low-score files are harder to place. So a buyer at 520 gets told no by lender after lender and reasonably concludes FHA is closed to them.
It is not. We write them.
| Credit score | Minimum down payment |
|---|---|
| 580 and above | 3.5% |
| 500 to 579 | 10% |
Down payment assistance is available from 580
We offer three down payment assistance programs, all paired with an FHA first mortgage. Depending on the program you can receive 2%, 3.5%, or 5% of the purchase price.
One is an outright grant with no repayment and no lien on your property. The others are structured as a second mortgage, either forgiven after a holding period or repaid over ten years.
None of them require you to be a first-time buyer, and two of the three have no income limit at all.
Note the interaction with the 500-score program: assistance requires a 600 minimum, or 620 for the grant. The two do not combine.
Mortgage insurance is the real trade-off
FHA mortgage insurance is a fixed cost that does not care about your credit score, and at low down payments it stays for the life of the loan.
That cuts both ways. If your credit is weaker, FHA is often cheaper than conventional, because conventional prices mortgage insurance to your score and a lower score means a higher premium. If your credit is strong, conventional usually wins, because its mortgage insurance costs less and comes off at 20% equity.
We run both and show you the actual numbers rather than assuming.
FHA with no credit score at all
Separate from the 500 program. This one requires that no borrower on the loan has a credit score at all. If any score exists, it must be used.
It is purchase only, primary residence, one unit, manually underwritten. The debt ratio ceiling is 31/43 with no exceptions and no compensating factors, which is tighter than a scored FHA loan. Two months of PITI reserves are required.
Non-traditional credit means three references, at least one of which must be rental housing, telephone service, or a utility account, with a long list of acceptable substitutes if those are not available.
Common questions
What is the lowest credit score you will do on FHA?
500, with 10% down. At 580 and above, 3.5% down.
Can I use down payment assistance with a 500 score?
No. Assistance requires a 600 minimum, or 620 for the grant program. The 500-score program and assistance do not combine.
Does FHA mortgage insurance ever come off?
At low down payments it stays for the life of the loan. That is the main structural difference from conventional, where it drops at 20% equity.
Is FHA always the right choice with lower credit?
Often, but not always. FHA mortgage insurance ignores your score while conventional prices it to your score, so the crossover point depends on where your credit sits. We run both.
Can I get an FHA loan with no credit score?
Yes, through the non-traditional credit program, provided no borrower on the loan has a score at all.
This is not a commitment to lend. Rates, programs, and terms are subject to change without notice. All loans are subject to credit approval and property qualification.