Flexible, Accessible, and
Built for Real Life
You don't need perfect credit or a huge down payment to get started. FHA loans open the door for a lot of buyers who think they can't qualify yet.
What Is an FHA Loan?
A government-backed loan insured by the Federal Housing Administration. Because the government backs it, lenders can offer more flexible qualifying guidelines — making it one of the most popular options for first-time buyers.
Is This Loan Right for You?
✔ Great fit if…
- You're buying your first home
- Your credit score is below 700 (or you're still building)
- You have a smaller down payment saved
- You've had some financial bumps in the past
✗ May not be the best fit if…
- You're buying an investment property or second home
- Your credit is 740+ and you have 10–20% down
- You're a veteran (VA may offer better terms)
The Numbers at a Glance
| Minimum down payment | 3.5% with 580+ credit score; 10% with 500–579 Source: HUD.gov |
| Credit score minimum | 580 for 3.5% down; 500 for 10% down (individual lenders may require higher) Source: HUD.gov |
| Upfront mortgage insurance (MIP) | 1.75% of loan amount (can be rolled into loan) Source: HUD.gov |
| Annual MIP | Typically 0.55% per year for most borrowers, paid monthly Source: HUD.gov |
| 2026 loan limit (most CO counties) | $541,287 for a single-family home Source: HUD.gov |
| Property types | Primary residence only |
What People Get Wrong About FHA Loans
Not true — plenty of buyers with good credit choose FHA because of the lower down payment requirement. It's about the right tool for your situation, not a credit judgment.
Modern FHA loans close on similar timelines to conventional loans. This stigma is outdated.
With FHA loans originated after 2013, MIP stays for the life of the loan if you put less than 10% down. It's worth knowing — and it's one reason some buyers refinance into a conventional loan later once they've built equity.
FHA vs. Conventional — Quick Comparison
| FHA | Conventional | |
|---|---|---|
| Min. down payment | 3.5% | 3% |
| Min. credit score | 580 | No minimum for some programs (as of late 2025)* |
| Mortgage insurance | Life of loan (usually) | Drops at 20% equity |
| Best for | Lower credit / smaller down payment | Stronger credit / more savings |
*In late 2025, Fannie Mae removed the minimum credit score requirement for certain conventional loan programs. Individual lender requirements may still apply. Learn more about conventional loans →