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FHA Loans
Your Path to Homeownership When Conventional Lenders Say You Are Not Ready Yet
We have helped buyers with 580 credit scores and less than $10,000 saved close on their first home.
INTRODUCTION
What is an FHA loan and how does it work?
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a division of HUD. Because the government insures the loan against default, lenders accept lower credit scores and smaller down payments than conventional loans require. The minimum down payment is 3.5% with a 580 credit score. FHA loans are only available for primary residences. Access Financial is a HUD-approved FHA lender
FHA loans do not come directly from the government. They are originated by HUD-approved lenders like Access Financial and then insured by the Federal Housing Administration. The insurance is what makes the lower down payment possible.
The biggest myth in homeownership is that you need 20% down. The second biggest myth is that a lower credit score disqualifies you. The FHA loan was specifically created to prove both wrong.
The Federal Housing Administration has insured home loans since 1934. In 2023 alone, FHA insured over 765,000 purchase loans. Most went to first-time buyers who could not qualify for conventional financing. The program exists precisely for you.
FHA Loan Requirements for 2026
Everything You Need to Qualify
What are the FHA loan requirements in 2026?
FHA loan requirements in 2026: minimum 580 credit score for 3.5% down (500 to 579 qualifies at 10% down), DTI up to 57%, 2 years employment history, documented income, and primary residence use only. No income limits apply nationally. FHA loans are available in all 50 states through HUD-approved lenders.
What do I need to qualify for a FHA loan in 2026?
| Credit Profile | Home Loan Eligibility |
|---|---|
| Excellent | Access to the best loan options. |
| Good | Qualifies for a variety of mortgage programs. |
| Limited | Fewer financing options may be available. |
FHA Mortgage Insurance Premium
Does FHA mortgage insurance ever go away?
FHA MIP cancels after 11 years if your down payment was 10% or more. With less than 10% down, MIP stays for the life of the loan. This is FHA’s biggest disadvantage versus conventional PMI, which cancels at 78% LTV automatically. The only way to remove MIP on a low-down-payment FHA loan is to refinance to conventional once your equity reaches 20%. Access Financial monitors your file and alerts you when that crossover makes financial sense.
| Mortgage Insurance | Overview |
|---|---|
| Upfront Protection | Included when your loan begins. |
| Monthly Coverage | Added to your regular mortgage payment. |
| Ongoing Benefits | Helps make home financing more accessible. |
Why FHA Loans Matter More Than Ever in 2026
FHA loans backed 765,000 home purchases in 2023. The average FHA borrower had a credit score of 670 compared to 755 for conventional borrowers, confirming FHA serves the buyers conventional lenders turn away. In high-cost markets like Northern Virginia, where median prices top $600,000, FHA’s high-cost limit of $1,209,750 means most buyers qualify. When paired with Virginia’s VHDA DPA Grant covering up to 2.5% of the purchase price, an FHA buyer’s actual cash to close can drop below $5,000.
Stacking FHA With a DPA Grant:
Reducing Your Cash to Close to Near Zero
| Down Payment Option | Ideal For |
|---|---|
| Starter | First-time homebuyers. |
| Essential | Buyers looking for affordable financing. |
| Preferred | Buyers with stronger financial stability. |
| Premium | Buyers seeking the best long-term mortgage benefits. |
THE 3 QUESTIONS FHA BUYERS ASK MOST
FHA is better when your credit score is below 660 or your DTI is above 45%. Conventional is better when your score is 660 or above because conventional PMI cancels at 80% LTV while FHA MIP often stays for the life of the loan. That difference costs $20,000 or more over the loan. Access Financial runs both scenarios for every first-time buyer and shows you the actual 30-year cost difference before you decide.
Yes. FHA loans cover 2-unit, 3-unit, and 4-unit properties when you occupy one unit as your primary residence. This is called house hacking. A veteran can combine this with VA financing for $0 down. A first-time buyer can use FHA at 3.5% down and let the rental income from the other units offset the mortgage payment. Access Financial runs both FHA and VA scenarios for multi-family purchase inquiries.
For W2 borrowers: 2 recent pay stubs, last 2 years W2s, 2 months bank statements, and a government-issued photo ID. For self-employed borrowers: 2 years of tax returns, a CPA letter confirming 2-year self-employment history, and 2 months bank statements. For ITIN borrowers: ITIN card, 12 months rent payment history, and 12 months bank statements. Access Financial provides a document checklist in the first 24 hours of your inquiry.
Why Your Lender Choice Matters More Than You Think
Conventional loans represent approximately 70% of all US mortgage originations according to the Urban Institute Housing Finance Policy Center 2024 report. The average conventional borrower has a credit score of 755 and a down payment of 19%. Yet CFPB research shows that borrowers who received only one rate quote paid an above-market rate on over 30% of transactions. A single additional lender comparison saved the average borrower $1,500 over the loan life. Getting five quotes saved $3,000 or more.
Of all US mortgages are conventional loans
30-year cost of accepting a 0.25% above-market rate on a $400,000 loan
Savings from getting 5 rate quotes vs 1 —