• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Five Stars Mortgage

call888-705-1975
Request Contact
  • Home
  • Loan Programs
    • DSCR Investor Loan
      • Florida Hard Money Loans – Private Money
    • Jumbo Loan
      • Super Jumbo Loan
    • VA Home Loans
    • USDA Rural Loan
    • FHA Home Loans
    • First Time Home Buyer
    • Conventional Loan
    • Refinance
      • Cash Out Refinance
  • Buyers Toolkit
    • Mortgage Pre Approval
    • No Down Payment
    • No Closing Cost
    • The Loan Process
    • Buyers Checklist
    • Homeowners Insurance
    • Appraisal
    • Mortgage Videos
    • APR Versus Note Rate
    • Florida Mortgage Map
  • Calculator
  • Mortgage Blog
  • Apply
  • About Us
    • Testimonials

FHA Home Loans

FHA Loan Guide 2025FHA Home Mortgage

FHA stands for the Federal Housing Administration. FHA was created in 1934 to help Americans realize the dream of Homeownership. FHA was absorbed into HUD in the 1960s and is now known as HUD-FHA.

There are a great many benefits to the FHA loan program. FHA loans are insured by the US government. They provide lenders with greater security than they get when they write traditional loans. HUD sets the basic FHA guidelines for lenders, however, lenders are able to add on their own specific requirements. This is why not all lenders are able to offer FHA loans to the same individuals. It is very important that you deal with a company well versed in FHA loans and that knows exactly how to take advantage of all of their great features.

FHA mortgage benefits

Listed below are some of the prime benefits of the FHA program:

FHA loans remain the most popular mortgage choice for first-time home buyers due to limited down payment, secure fix interest rates and government backing.  Contact us to learn more.     

    

  • FHA typically requires a low down payment of 3.5%. Except for the HUD $100 down program and other 100% down payment assistance options as seen below.
  • 1.75% Up Front Funding Fee (rolled into the loan) and monthly mortgage insurance for 2025. MI goes lower with down payments greater than 3.5% – see chart below.
  • Low mortgage insurance coverage (typically lower than conventional mortgage insurance)
  • Co-signers (including non-occupant co-signers) are allowed
  • No income limitations at all. However, income must be fully documented
  • No approved zoning requirements
  • Older mobile Homes, lot loans, and vacant land is not permitted.
  • 80% loan to value on FHA cash-out refinance permitted in most cases.
  • No need to pay off medical or small collection accounts (letters of explanation are used)
  • No prepayment penalties EVER
  • Security of a 30-year fixed mortgage. Borrowers can also choose other fix rate or adjustable rate terms.
  • 6% seller contribution is allowed for closing costs with FHA
  • Ability to use non-traditional trade lines to qualify (phone bills, light bill, electric bill, cell phone bill, etc..)
  • High debt-to-income ratios over 50% are often allowed with compensating factors (great credit, etc)
  • Compensating factors such as length of time on the job or funds (savings) in reserves help overlook negative factors
  • No minimum bank savings reserves are required from the buyer
  • Gifts funds are allowed from family, friends, work, or other interested parties
  • FHA is great for first-time homeowners and public service workers like Teachers, Police, Firefighters, etc. FHA loans also allow buyers with challenged credit access to low-cost, secure fixed rate mortgage.

Have questions? Please submit the short Request Contact form above to be connected to a loan specialist 7 days a week.

2025 FHA MIP chart based on the loan amount and down payment:

2023 FHA Mortgage Insurance

If you are a home buyer located in USDA rural eligible area, please be sure to also check out the 100% USDA rural loan page. The USDA mortgage offers 100% financing in selected locations around the U.S. – even many locations in Florida, Texas, and California.

FHA Loan Limits For 2025:

The loan limits below apply to most 1-unit properties in the U.S. High-cost and muti-unit properties are even higher.

2025 FHA Home Loan Limits

Other FHA Home Purchase Options:

Florida Hometown Heroes Loan Program: This program is reserved exclusively for Florida first-time home buyers who are full-time employed by any Florida-based business.  The Hometown Heroes mortgage program allows 5% of the borrower’s loan amount (up to $35,000) to be used for closing costs and down payment assistance. Those purchasing a home under $200,000 will receive $10,000 in assistance. In short, buyers can have 100% FHA financing with closing costs included. This is achieved by a state-sponsored 0% deferred 2nd mortgage. Household income restrictions do apply,  $132,900 and up depending on the county.

* Located outside of Fla? Be sure to also ask about new down payment assistance programs that allow for 100% FHA financing in other states.

FHA HUD $100 Down Program: This is a specialty FHA mortgage program offered for HUD-owned houses throughout the nation. You can search the list of HUD-owned homes in the HUD web link below.  The big benefit of the HUD 100 down loan program is home buyers can purchase a property with nearly NO money out of pocket.  Again, this program is only available for HUD-owned properties.

FHA 203K Loans:  Looking for a home loan that can finance the cost of remodeling or improvements? If you’ve found the ideal home, but it needs a little work, the FHA 203K Loan could be the answer. This program allows buyers to purchase a home and roll in the expense of renovations. Standard conventional loans require that homes have certain things in working order before closing.

The FHA 203k is a resourceful program for short-sale or foreclosed properties that may be distressed due to lack of maintenance. The program is important for expanding homeownership, revitalizing neighborhoods, and making homes safer for homeowners.  Please note: FHA 203K loans are only for primary residences, borrowers must occupy the home full-time.

FHA Streamline Refinance 2024FHA Refinance Mortgage Programs:

FHA streamline refinance –  No appraisal or equity is required when you refinance your current FHA mortgage loan into a new FHA loan. The streamlined refi program allows homeowners to take advantage of historically lower interest rates and lock into a new FHA mortgage – all without having to provide as much documentation.

No appraisal means the streamlined loan does NOT have equity requirements like many other loan programs.  In addition, no new appraisal, survey or home inspections save the homeowner money on their closing costs. We can also structure the loan so that there are no out-of-pocket expenses for our clients. Homeowners will need a few things to be eligible for the Streamline program:

  • Must currently have an FHA-insured mortgage (regardless of the original lender, we can help)
  • Must have on-time mortgage payments for the last 6 months.
  • Must have “reason to refi”  like reduced interest rate and lower payments, or refinancing out of an adjustable rate mortgage, into a fixed rate loan, etc.
  • You cannot have refinanced within the past 6 months.
  • Must have a 620+ credit score. 
  • Cash-out is not permitted with the streamlined refinance program. However, homeowners who have equity can contact us about other cash-out refinance options. Regular FHA cash-out refinance options are available up to 85% loan to value. Cash-out refinance options will require full appraisal and income, asset documentation.

Borrowers can contact us to learn more about any of the FHA programs. Please select the Request Contact icon at the top of your screen, or call ph: 888-705-1975. We generally respond to all submitted requests within minutes during regular business hours! 

 

MORTGAGE PROGRAMS

Primary Sidebar

Latest Mortgage News

Financing Luxury Homes in Phoenix: Jumbo Loan Insights

In 2025, the Phoenix and Scottsdale real estate markets continue to captivate buyers seeking luxury … [More...] about Financing Luxury Homes in Phoenix: Jumbo Loan Insights

Jumbo Loans in Chicago – Guide to Low Down Payment Options

Buying a high-priced home in Chicago? If your mortgage needs exceed the $806,500 conforming loan … [More...] about Jumbo Loans in Chicago – Guide to Low Down Payment Options

Jumbo Loans in Anaheim: Unlocking Homeownership with Low Down Payment

Anaheim, like much of Orange County, features a highly competitive housing market and rising home … [More...] about Jumbo Loans in Anaheim: Unlocking Homeownership with Low Down Payment

Mortgage Calculator

year(s)
per year
per year
Calculate

Your total monthly payment

Principal & Interest:
Home insurance:
Property taxes:
PMI:

Five Stars is now operated and a web asset of Coast2Coast Mortgage NMLS# 376205
9050 Cypress Green Dr. Suite #403 Jacksonville, FL 32256

The use of this website is strictly for informational purposes only. We are not affiliated with any government agency.
Privacy Policy

Footer 1

Get More Info

Questions? Please submit the Request Contact Form Here
to connect with a specialist 7 days a week.