Social Links Widget

Click here to edit the Social Media Links settings. This text will not be visible on the front end.

First Time Home Buyer • Home Buyer Tips • Local Cities • Mortgage Products • October 6, 2025

FHA Loan FAQ

by Suzanne Hurge-Moore
  1. What is an FHA loan?

An FHA loan is a government-insured mortgage backed by the Federal Housing Administration. It’s designed to help buyers with lower credit scores or limited savings qualify for homeownership [1].

  1. Who are FHA loans best for?

FHA loans are ideal for:

  • First-time homebuyers
  • Borrowers with credit scores as low as 580
  • Buyers with small down payments
  • Those recovering from bankruptcy or foreclosure [1].
  1. What are the FHA loan requirements in 2025?
  • Credit Score:
    • 580+ = 3.5% down payment
    • 500–579 = 10% down payment
  • Debt-to-Income Ratio: Typically under 43%
  • Primary Residence: The home must be your main residence
  • Employment: 2-year work history with documented income
  • Mortgage Insurance: Required for all FHA loans[3][2].
  1. How much is the minimum down payment?
  • 3.5% if your credit score is 580 or higher
  • 10% if your credit score is between 500 and 579 [3].
  1. What are the FHA loan limits for 2025?
  • Standard areas: \$524,225 for a single-family home
  • High-cost areas: Up to \$1,209,750
  • Multi-unit properties have higher limits (up to \$2,326,875 for 4 units) [5][4].
  1. What is the FHA mortgage insurance requirement?
  • Upfront MIP: 1.75% of the loan amount (can be financed)
  • Annual MIP: 0.55%–0.75%, added to monthly payments
    MIP is required for the life of the loan unless you refinance into a conventional mortgage [6].
  1. Can gift funds be used for the down payment?

Yes. FHA allows gift funds from family members or approved assistance programs for the down payment [7].

  1. Can FHA loans be used for investment or vacation homes?

No. FHA loans are only for primary residences [3].

  1. Are FHA loans assumable?

Yes. FHA loans are assumable, meaning a future buyer can take over your loan terms—an advantage in a high-interest-rate market [1].

  1. What changed in 2025 for FHA loans?
  • Loan limits increased to reflect rising home prices
  • Eligibility tightened: Non-permanent residents (e.g., visa holders, DACA recipients) are no longer eligible unless they have a green card or U.S. citizenship [8].

Contact me TODAY to discuss your real estate goals.


References

[1] FHA Loans in 2025: Requirements, Limits, Pros & Cons | Revix

[2] FHA Loan Requirements 2025 | Eligibility Guide

[3] FHA Loan Requirements in 2025

[4] HUD Archives: HUD Announces 2025 Loan Limits

[5] FHA Loan Limits for 2025 – Experian

[6] FHA Loans in 2025: Path to Homeownership or Hidden Trap?

[7] 10 FHA Loan Requirements and Guidelines To Know in 2025

[8] FHA Loan Eligibility Update 2025: What Homebuyers and Real Estate …

Related Articles
First Time Home Buyer What’s Special About Laurel, MD? – FAQ Where is Laurel, MD located? Laurel is uniquely positioned midway between Washington, D.C., and Baltimore, making it a prime location for commuters. It sits along the Patuxent River and offers easy access to major highways like I-95 and the Baltimore-Washington Parkway [1]. What makes Laurel unique compared to other Maryland cities? Laurel is one of […]
First Time Home Buyer How Much Does It Cost to Buy a Home in Millersville, MD? What is the average home price in Millersville? As of mid-2025, the median sale price for a home in Millersville is about \$509,000 [1]. This reflects an 18.7% decrease year-over-year, making it a more favorable time for buyers compared to last year. What is the typical price range for homes in Millersville? Homes in Millersville […]
First Time Home Buyer Purchasing a Condo in Maryland – FAQ How much does a condo cost in Maryland? Condo prices in Maryland vary by location, size, and amenities. On average, expect to pay $220,000 to $450,000, with higher prices in areas like Annapolis, Bethesda, and waterfront communities. What are typical condo fees in Maryland? Monthly condo fees usually range from $200 to $700. These fees […]

Coldwell Banker - Howard County Regional

© 2025 Coldwell Banker Real Estate LLC

Terms Of Use | Privacy Policy

Accessibility Statement | Fair Housing Notice

© Coldwell Banker 2023 – 2025. All Rights Reserved. Coldwell Banker and the Coldwell Banker logo are trademarks of Coldwell Banker Real Estate LLC. The Coldwell Banker® System is comprised of company owned offices which are owned by a subsidiary of Anywhere Advisors LLC and franchised offices which are independently owned and operated. The Coldwell Banker System fully supports the principles of the Fair Housing Act and the Equal Opportunity Act.