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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.
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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?
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.
| FHA Mortgage Insurance Component | Details |
|---|---|
| 1.75% | Upfront MIP paid at closing or financed into the loan balance |
| 0.55% | Annual MIP rate divided into 12 monthly payments added to your mortgage |
| $183/month | Estimated annual MIP cost on a $400,000 FHA loan, added to principal and interest payments |
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 | PMI Required? | Best For |
|---|---|---|
| 3% (Conventional 97) | Yes | First-time buyers, income limits may apply |
| 5% | Yes | Strong credit buyers wanting lower payment |
| 10% | Yes, lower premium | Buyers with solid savings and good credit |
| 20% | No PMI ever | Buyers who want the lowest total monthly cost |
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 —
Frequently Asked Questions
Yes. Self-employed borrowers qualify using 2 years of tax returns. However, significant write-offs may reduce qualifying income.
Conventional full-documentation loans use 2 years of Schedule C or business return income. If write-offs reduce taxable income below the qualification threshold, a bank statement loan is often the better path for self-employed borrowers. Access Financial evaluates both conventional full-doc and bank statement qualification
Conventional 97 is a Fannie Mae program allowing first-time buyers to purchase with 3% down on a conventional loan.
The Conventional 97 requires at least one borrower to be a first-time buyer — defined as no primary residence ownership in the last 3 years. Minimum 620 credit score. PMI is required but cancels at 80% LTV, unlike FHA MIP which often stays for the loan life. Freddie Mac's Home Possible is a similar alternative. Access Financial runs both alongside FHA for every first-time buyer inquiry.
Yes. Conventional loans finance investment properties up to 10 financed properties per Fannie Mae guidelines.
Investment properties require 15–25% down on conventional. Rates run 0.5–0.75% above primary residence rates. At 10 financed properties, Fannie Mae guidelines no longer apply and DSCR or portfolio programs take over. Access Financial originates both conventional investment loans and DSCR programs for investors who have exceeded the 10-property cap.
FHA loans accept a 580 credit score with 3.5% down. VA loans have no official minimum — most lenders require 580 or above. Conventional loans typically need 620–640. Bank statement and Non-QM programs can go lower depending on compensating factors like a larger down payment or strong reserves. A free consultation confirms exactly where you stand.
The interest rate is what you pay on the loan balance. APR adds all fees and expresses the true annual cost as a percentage.
APR is always higher than the interest rate. When comparing conventional loan offers from multiple lenders, compare APR rather than the stated interest rate alone. A lower rate with higher origination fees may carry a higher APR than a slightly higher rate with minimal fees. Access Financial discloses all fees in a Loan Estimate within 3 business days of app
Yes. Virginia buyers qualify for the Fannie Mae Conventional 97 program with as little as 3% down. In high-cost counties like Fairfax and Loudoun, the 2026 conforming limit reaches $1,209,750, so most buyers can avoid jumbo loans. Access Financial is licensed in Virginia and shops all 3%-down conventional programs across 100+ lenders.
A VA loan is available only to eligible veterans and active-duty military and requires no down payment or PMI. A conventional loan in Virginia is available to all borrowers with a 620+ credit score and starts at 3% down. For Virginia's large military population — particularly near bases like Quantico, Fort Belvoir, and Joint Base Langley-Eustis — comparing both options is worth doing before you lock.