FHA Home Loans

A primary-residence program

FHA’s basic 203(b) program supports eligible one-to-four-unit principal residences. A borrower buying a multi-unit home to live in one unit must satisfy the occupancy and underwriting requirements. A property held solely as an investment follows a different financing path.

Mortgage insurance belongs in the budget

FHA financing generally includes upfront and ongoing mortgage insurance. Compare the complete monthly payment, cash needed at closing and the expected cost over the time you intend to hold the loan.

Credit, income, assets and the property still require review. Loan limits depend on location and property size; obtain a property-specific quote rather than relying on a national maximum.

Prepare for an FHA conversation

A complete picture of earnings and recurring obligations helps the lending team evaluate affordability.

• Income and employment documentation, including tax returns when applicable.
• Bank statements and the source of down payment and closing funds.
• Current housing costs and monthly debt obligations.
• The property address, purchase price and plans to occupy the home.

Compare homeownership and investment choices

Conventional financing may be worth comparing when your credit, down payment or long-term plans change the total cost. If you will live in one unit and rent others, discuss the actual occupancy and rental documentation early.

For a property you will not occupy, explore investment financing such as DSCR. Describe the intended use accurately from the first conversation.