Do I have to be a first-time buyer?

No. FHA is available to eligible borrowers whether or not they have owned a home before, as long as the occupancy and other HUD rules are met.

Are FHA loans only for “starter” homes?

No. FHA has county loan limits, so it is not a jumbo product, but it is used for a wide range of primary residences within those limits.

Loan program

FHA

A government-insured mortgage designed to make homeownership more reachable for eligible borrowers, often with a lower down payment.

Overview

What it is

An FHA loan is insured by the Federal Housing Administration. The insurance protects the lender, which is why FHA can often accept a lower down payment and a wider range of credit histories than some conventional programs.

FHA is frequently used for first-time buyers, but you do not have to be a first-time buyer to use it. The property generally needs to be a primary residence and meet FHA’s minimum property standards.

FHA mortgage insurance works differently from conventional PMI. There is typically an upfront mortgage insurance premium and an annual premium collected monthly. How long the monthly premium lasts depends on down payment and loan term. Your officer should walk through the current HUD rules for your file.

A reachable first home with a simple, welcoming facade

Who it may be good for

Buyers who have a modest down payment and want a primary home.
Borrowers whose credit profile is stronger under FHA guidelines than under conventional overlays.
Purchases where gift funds from family, or certain assistance programs, may help with cash to close.

How it works

01
You apply with a Hancock loan officer. The loan is still originated by Gold Star Mortgage Financial Group, Corp.; FHA insures the loan rather than originating it.
02
The home is appraised to FHA standards. Repairs can be required if the property does not meet those standards.
03
Loan amounts cannot exceed FHA limits for the county. Those limits are published by HUD and change over time. We will not quote a number here that may be out of date.

Potential advantages

Lower down payment options for eligible borrowers (HUD currently allows as little as 3.5% in many cases).
More flexibility on credit and gift funds than some conventional programs.
Can be a practical path when conventional PMI or credit overlays do not fit.

Things to consider

FHA mortgage insurance is structured differently from conventional PMI and may last longer.
The property must be a primary residence and generally must meet FHA condition standards.
Condo and manufactured-home eligibility can be more specific than a typical conventional file.
FHA is not automatically the cheapest option. Compare it to conventional and, if you are eligible, VA or USDA.

Find a Loan Officer Contact Us

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Getting in

FHA is often about cash to close and the property, not a smaller life.

Common questions

Questions about FHA loans

Often yes, when the gift comes from an eligible source and is documented correctly. Your loan officer will tell you what paper trail underwriting needs. A screenshot of a transfer is rarely enough.

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Ready when you are

The house is the point.

Whether you’re buying your first home, moving into your next one, refinancing, or exploring your options, we’re here to help you figure out the next step.