What are FHA loan requirements?

FHA loans require: 3.5% down with 580+ credit score, or 10% down with 500–579. Debt-to-income ratio ≤ 43% (sometimes 50%). Home must be primary residence. Upfront MIP (UFMIP): 1.75% of base loan. Annual MIP: 0.50–0.55% for 30-year loans with 3.5–10% down. MIP is permanent with 10% down.

FHA vs conventional loan — which is better?

FHA is better when: credit score is below 680, you have less than 20% down, or you have higher debt-to-income ratios. Conventional wins when: you have 20%+ down (no PMI), credit score above 740, or you want to avoid permanent MIP. FHA limits loan amounts by county (2025: $524,225 most areas, $1.2M high-cost).