What credit score do I need for an FHA loan?

FHA guidelines allow 3.5% down with a credit score of 580 or higher, and 10% down with a score between 500 and 579. Individual lenders often set higher minimums.

Is FHA only for first-time buyers?

No. Repeat buyers can use an FHA loan as long as the home will be their primary residence.

Can I remove FHA mortgage insurance later?

On most FHA loans the monthly mortgage insurance stays for the life of the loan when you put down less than 10%. Many homeowners remove it later by refinancing into a conventional loan once they have enough equity.

FHA or conventional: which is better?

It depends on your credit score and down payment. Max runs both so you can compare the monthly payment and the total cost.

FHA loans in Colorado

An FHA loan is insured by the Federal Housing Administration, which lets lenders accept a smaller down payment and credit that is still being built. Max compares FHA pricing across several lenders.

Call (970) 369-9191

A short call. No obligation,
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Max Henry · Senior Loan Officer · NMLS #2186109

Down payment: As little as 3.5%
Credit score: 580+ for 3.5% down
Use: Primary residence
Mortgage insurance: Required on FHA loans

Who it is for

Buyers with a smaller down payment
Buyers whose credit score does not fit conventional pricing
First-time and repeat buyers alike: FHA is not limited to first-time buyers
Buyers using gift funds from family for the down payment

What it takes

Down payment: 3.5% of the purchase price with a credit score of 580 or higher. With a score between 500 and 579, FHA guidelines call for 10% down, and many lenders set their own higher minimums.
Mortgage insurance: FHA loans carry an upfront mortgage insurance premium, usually added to the loan, plus an annual premium paid monthly.
Primary residence: You must live in the home. FHA loans are not for investment properties.
Loan limits: FHA sets a maximum loan amount for each county, and the limits change every year.
Property condition: The home must meet FHA’s minimum standards, checked during the appraisal.

General guidelines. Lenders set their own requirements, and Max confirms what applies to you.

Estimate the down payment and the monthly payment

Set the price and how much you would put down. Type in an interest rate to see the monthly principal and interest. Max gives you today’s rate for your situation on the call.

Home price$450,000

Interest rate (%)

Term 30 years 15 years

Down payment 3.5%: FHA, with a 580+ credit score: $15,750
Loan amount: $434,250

Add a rateEnter an interest rate to see the monthly principal and interest.

An estimate for planning, not a quote or a loan offer. It leaves out property taxes, homeowners insurance, mortgage insurance and association dues, which add to the payment.

On the call with Max

FHA sets the rules, and each lender adds its own pricing and its own minimums. Max checks several so you are not held to one lender’s version.

Tell Max what you want to do. You get a straight answer on what is possible and the exact documents he needs. FHA quotes from different lenders side by side, and a comparison with a conventional loan if you are close to qualifying for both.

FHA loan questions

What credit score do I need for an FHA loan?: FHA guidelines allow 3.5% down with a credit score of 580 or higher, and 10% down with a score between 500 and 579. Individual lenders often set higher minimums.
Is FHA only for first-time buyers?: No. Repeat buyers can use an FHA loan as long as the home will be their primary residence.
Can I remove FHA mortgage insurance later?: On most FHA loans the monthly mortgage insurance stays for the life of the loan when you put down less than 10%. Many homeowners remove it later by refinancing into a conventional loan once they have enough equity.
FHA or conventional: which is better?: It depends on your credit score and down payment. Max runs both so you can compare the monthly payment and the total cost.