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  • Writer's pictureMatthew & Brooke

FHA Loans - explained!

FHA Loans and What They Entail

The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single-family and multi-family homes in the United States and its territories. It is the largest insurer of residential mortgages in the world, insuring tens of millions of properties since 1934 when it was created.

  • FICO® score at least 580 = 3.5% down payment.

  • FICO® score between 500 and 579 = 10% down payment.

  • MIP (Mortgage Insurance Premium ) is required.

  • Debt-to-Income Ratio of less than 43%.

  • The home must be the borrower's primary residence.

  • The borrower must have a steady income and proof of employment.

As a Realtor, I see these loans almost daily. They are always popular due to the lower downpayment and credit score requirement. Not to say that it is simple enough to get, there are still a few details a loan officer will need to help you with, but out of the current loans out there, it is the easiest.

I work with a great loan officer, Patrick Brill with Alterra Homes, and he has helped me understand how the loan world works! If you are looking to buy a home, or refinance, I highly recommend Patrick


Now the limit on an FHA loan is $331,760. That is not to say that you cannot use an FHA loan for a house that is $350,000 and above. This just means that FHA will cover the loan up to $331,760 and anything above that, will need to be paid for by the borrower. This is for the state of Florida.

So Client A wants to buy a house for $350,000 and they get approved for an FHA loan. Their downpayment will include 3.5% ($12,250) and the difference of $18,240 to make up for the higher purchase price. Bringing their total downpayment to $30,490 before closing costs are included. This is something that the Realtor for Client A should explain in detail when buying a home past the FHA loan threshold amount.


Matt Schnitker is a Realtor® in Orlando, Florida with BEX Realty. I'm a proud husband and father of two, self-professed tech nerd, and bona fide food fanatic. My wife and I are both Real Estate nerds and we love looking at Real Estate, so of course, we got into the business together. 😆

If you have any questions or would like some more information on anything you see in my videos (or anything else) please email me at or call my team at 407.415.1015

We have a website with tons of blogs and videos and you can search for homes for sale:

Keep smiling :)

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