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FHA loans: low down payment options for primary-home buyers

FHA loans are government-insured mortgages designed to make homeownership reachable with a lower down payment and more flexible credit requirements than conventional loans — a good fit for many first-time and primary-home buyers.

3.5% Typical minimum down paymentFlexible Credit guidelinesPrimary Owner-occupied homes
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Reviewed by Ahoo Khalessi, Division Manager & Loan Officer, NMLS #2239510  ·  Last updated June 2026

What is an FHA loan?

A mortgage insured by the Federal Housing Administration. Lender risk is reduced by FHA insurance, which is why down payment and credit requirements can be more flexible than conventional loans.

Who FHA loans are for

Buyers who want a lower down payment or have a credit profile that doesn't fit conventional guidelines. The home must be owner-occupied.

Why CTC Equity

We shop your FHA scenario across 160+ lenders to find the best combination of rate, fees, and qualifying flexibility.

Common questions

What credit score do I need for an FHA loan?+

FHA programs accept a wide credit range. The exact minimum depends on the lender and the down payment you bring.

Can I use an FHA loan for an investment property?+

No — FHA loans require the home to be your primary residence.

Does FHA require mortgage insurance?+

Yes. FHA loans carry upfront and annual mortgage insurance premiums; we'll compare the total cost against conventional options.

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